Brazilian proptech startup Loft, which was valued at $2.9B last year, lays off 380 employees – TechCrunch
Loft, the Brazilian proptech rhinoceros, has layoffs about 380 employeesor 12% of its workforce, the company announced today.
The layoff marks the company’s second round of cuts this year so far. In April, Bloomberg Linea reported that Luft has cut 159 jobs. This means that Loft has left approximately 540 workers this year so far. It currently has about 3,200 employees.
In an emailed statement, Loft – which says it is using technology to simplify and enable real estate and credit transactions – called the move a “reorganization of its operations”. She said the affected employees are those who “serve Loft and the acquiring companies”.
It added that affected employees will receive a special benefits package that includes:
- Extension of the health plan for the bearer and her dependents for a period of two months;
- Professional transportation support;
- Facilitate participation in the stock option plan for eligible persons.
The company also said:
Luft appreciates the dedication of the employees who have left the company, is committed to helping them in everything possible to move into the market and regrets the loss of these professionals. This headcount reduction and other efficiency measures taken in recent months come after four years of strong and consistent growth, both through organically developed products and through acquisitions. Through these actions, Loft Group is adapting to the new global reality, taking important steps to support the continuation of the current pace of strong growth in its business, and offering innovative products to clients, including real estate agents and brokers across the country.
Loft aims to be a ‘one-stop shop’ for Brazilians to help them manage the home buying and selling process. Last year, Loft acquired Mexico City startup TrueHome, entering that market in what it called the “beginning” of its international expansion. At the time, the company said it had become “the highest-revenue real estate e-commerce platform in emerging markets outside of China.
In April of 2021, TechCrunch reported on Sao Paulo-based Loft Closes on $100 Million in Funding The company is valued at $2.9 billion. At the time, its founders told TechCrunch that the startup had increased its valuation by $700 million in a matter of weeks. Since its establishment in 2018, Loft . has raised $800 million in equity funding from an investor base that includes Billy Gifford, Andreessen Horowitz (a16z), D1 Capital, QED and Tiger Global.
In 2020, Loft saw the number of listings on its site increase “10 to 15 times,” according to co-founder and co-CEO Matty Pincks. At the time of its latest increase in April 2021, the company said it had actively held more than 13,000 property listings in nearly 130 regions across São Paulo and Rio de Janeiro, in partnership with more than 30,000 brokers.
Earlier this year, co-founder of LOFT Christian Huber said the company has “governance and compliance ready for US capital markets,” but it can “wait [for] The best time to unveil Bloomberg Linea.
Similarly, another proptech firm in the region, Brazilian digital real estate broker QuintoAndar, Launched in June in Mexico CityThis is the first time the startup has expanded outside its home country. Last August, QuintoAndar announced that it had done so Raised $120 Million valued at $5 billion. In April, the company 160 people laid offor 4% of its employees.
Obviously, just as in the US, Latin America is also facing a slowdown due to rising interest rates, among other things. In June, TechCrunch reported that Redfin and Compass conducted layoffs Together they numbered about 920 people.