Brazilian proptech startup Loft, which was valued at $2.9B last year, lays off 380 employees – Nob6

Loft, a Brazilian proptech unicorn, has laid off about 380 workers, or 12% of its workforce, the corporate introduced right this moment.

The layoff marks the corporate’s second spherical of cuts this 12 months to date. In April, Bloomberg Linea reported that Loft had cut 159 jobs. That may imply that Loft has let go of almost 540 employees this 12 months to date. It presently has about 3,200 workers.

In a press launch, Loft — which says it makes use of expertise to simplify and allow actual property and credit score transactions — described the transfer as “a reorganization of its operation.” It stated that the affected workers have been those that “serve Loft and bought firms.”

It added that the impacted workers would obtain a particular advantages package deal, which incorporates:

• extension of the well being plan for the holder and dependents for two months;
• assist to the skilled relocation course of;
• facilitation of participation within the inventory choice plan for eligible folks.

The corporate additionally stated:

Loft appreciates the dedication of the workers who’ve left the corporate, is dedicated to assist them in no matter is feasible to relocate to the market and regrets the lack of these professionals. The discount in workers is along with different measures to extend effectivity taken in latest months after 4 years of aggressive and constant progress, each by means of organically developed merchandise and thru acquisitions. With these measures, the Loft Group adjusts to the brand new international actuality, taking vital steps to assist the continuation of the present tempo of sturdy progress in its enterprise, providing progressive merchandise to shoppers, together with actual property brokers and brokers all through the nation.

In April of 2021, Nob6 reported on São Paulo-based Loft closing on $100 million in funding that valued the corporate at $2.9 billion. At the moment, its founders instructed Nob6 that the startup had elevated its valuation by $700 million in a matter of weeks. Since its 2018 inception, Loft has raised $800 million in fairness funding from an investor base that features Baillie Gifford, Andreessen Horowitz (a16z), D1 Capital, QED and Tiger International.

Loft goals to function a “one-stop store” for Brazilians to assist them handle the house shopping for and promoting course of. Final 12 months, Loft acquired a Mexico Metropolis-based startup, TrueHome, and entered that market in what it described because the “begin” of its worldwide growth. At the moment, the corporate stated it had turn out to be “the true property e-commerce platform with the very best income in rising markets outdoors China.”

In 2020, Loft noticed the variety of listings on its web site enhance “10 to fifteen instances,” in response to co-founder and co-CEO Mate Pencz. On the time of its final elevate in April 2021, the corporate stated that it actively maintained greater than 13,000 property listings in roughly 130 areas throughout São Paulo and Rio de Janeiro, partnering with greater than 30,000 brokers. 

Earlier this 12 months, Loft’s co-founder Kristian Huber stated the corporate had “governance and compliance prepared for US capital markets,” however might “wait [for] one of the best time to go public,” reported Bloomberg Linea.

Equally, one other proptech within the area, Brazilian digital actual property dealer QuintoAndar, launched in June in Mexico City, marking the primary time the startup has expanded out of its residence nation. Final August, QuintoAndar introduced it had raised $120 million at a $5 billion valuation. In April, the corporate laid off 160 people, or 4% of its workers.

It’s clear that as in america, Latin America too is going through a slowdown as a consequence of elevated rates of interest, amongst different issues. In June, Nob6 reported that Redfin and Compass carried out layoffs that mixed amounted to about 920 folks.