BUSINESS

Blueground firmly on the growth path

blueground-firmly-on-the-growth-path

Greek-owned startup Blueground is turning to the creation of more jobs in Greece and in new markets, after the funding of $180 million it secured from international and local investors.

Kathimerini can reveal that the property utilization company is planning to hire some 300 new staff in the next 12 months, half of which will be based in Greece.

Despite the blow it suffered due to the pandemic, its aim is to expand to over 50 cities by 2025, with sources speaking of focusing on European markets. Blueground currently employs 200 people in Greece and over 450 internationally.

Out of the $180 million raised, $140 million constitutes financing through a share capital increase from investment companies WestCap, Geolo Capital, Prime Ventures and the Greek fund VentureFriends. The other $40 million was a loan from Silicon Valley Bank.

Kathimerini understands that the final amount of financing was definitively confirmed over the weekend, with information leaked already from Friday speaking of a funding round well above $150 million. Blueground’s capitalization exceeds $500 million, coming close to $750 million. This new round brings the total amount raised since it was founded in 2013 to $258 million, the highest ever by a Greek startup.

Blueground’s market is the leasing of furnished residential properties. Once it has agreed on the leasing of assets from owners, it completes their furnishing and equipment so as to turn them into high-standard residences. It then sublets them to corporate officials for a month, a year or even more.

For now the company is present in 15 cities around the world, and its portfolio boasts over 4,500 apartments.

The company’s financing comes at a time when the short-term leasing sector was just starting to recover some of the ground lost due to the health crisis. Market professionals estimate that the positive reaction by investors constitutes an opportunity for the company to increase its market share, given that several rival collapsed under the pressure of the pandemic.

Blueground’s global turnover is estimated at $140 million in 2021, with the company eyeing $240 million next year.