The turnkey rental investment company completes a €40 million fundraiser from DST Global Partners, Daphni and its employees to establish itself as a European leader.
Proptech startups are on the rise. Masteos, a French turnkey rental investment company, announced today the completion of a €40 million fundraiser from Daphni-based DST Global Partners, nine months after raising €15 million. Startup employees also participated in this funding round up to 10%.
Masteos’ promise is strong: to support people at every stage of their rental investment with a single app. Thus, the Parisian start-up takes on the most complex and time-consuming stages of work, from choosing a property and modeling its financial performance to renovating, furnishing and renting it out. Thus, the whole process is controlled remotely. “Nearly half of our clients don’t visit the properties they buy,” Thierry Vignal, co-founder and president of Masteos, told JDN.
This rental investment attraction is currently generating a lot of interest in an uncertain economic environment and high inflation. “We believe there has never been a better time to invest in real estate at a time when we are borrowing at negative real interest rates,” emphasizes Thierry Vignal, for whom renting real estate is the most reliable protection against inflation.
These arguments are resonating more and more with young clients with a first-time investor profile, as well as expatriates. So the startup, which recorded record sales in June, is attracting more and more young workers in their thirties who are enticed by the idea of using the app to make all their remote rental investments.
This new round of funding, led by DST Global Partners (Twitter, Spotify, Sunday, etc.) and Daphni (BackMarket, Made.com, Winamax, etc.), should enable accelerating and hiring new employees for three main activities: transactions, construction/renovation and rental management. It is this integration of professions that is the main strength of Masteos, while its competitors often prefer to subcontract service providers. This vertical integration of the business puts customers at ease. “We don’t have real competitive pressure,” clarifies its founder. Even large networks of real estate agencies, which Masteos considers more partners, especially for real estate acquisitions.
Mastering the entire value chain necessarily requires significant hiring. Thus, the funds raised will be used to hire 300 new employees in 2022 alone and another 500 in 2023. Masteos also plans to use its funds to improve its technology so that, for example, you can track site evolution or rental rates from your smartphone.
Development in France and international expansion
This 40 million package should allow Masteos to expand its presence not only to the 50 largest French cities by 2023, but also to the UK and Germany from the end of 2022, pending openings in Italy, Ba and Portugal. The startup is already present in Spain and Belgium and aims to become a European leader in 2024. The French company does not refrain from expanding outside of Europe in the long term. “Translating our app into English for the UK market will allow us to establish the first bridge to a future US launch,” admits Thierry Vignal.
This national and international network is also an additional selling point for Masteos customers who can be offered acquisitions in cities with high margins. Masteos local staff take care of property searches and take care of property renovations and rental management. In return, the company takes a commission of 5% of the sale price and 5% of the rent. Not yet profitable, Masteos currently chooses to invest in its growth to change the investor experience with technology. “The current context of the crisis will force us to focus on the rigidity of our fixed costs,” says Thierry Vignal, however.
Over the past four years, more than 400 start-ups in this sector have been born in France, showing the dynamism of the tricolor technology sector. Startups that have completed 44 funding rounds in 2021 and have only raised around €628 million in investment. Masteos knows that there is something to take on, and does not intend to stop there. “Despite the challenging economic environment, we already have commitments from some shareholders to launch a Series B early next year,” Thierry Vignal told JDN. To be continued.