Brazilian proptech startup Loft, which was valued at $2.9 billion last year, is laying off 380 employees – TechCrunch

Loft, a Brazilian proptech unicorn, has laid off 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 Loft cut 159 jobs. That would mean Loft has laid off nearly 540 workers this year so far. It currently has approximately 3,200 employees.

In an emailed statement, Loft — which says it uses technology to simplify and enable real estate and credit transactions — described the move as “a reorganization of how it operates.” He said the affected employees were those who “serve Loft and have acquired businesses.”

He added that affected employees would receive a special benefits package, which includes:

  • extension of the health plan for the holder and his dependents for 2 months;
  • support for the professional relocation process;
  • facilitation of participation in the stock option plan for eligible persons.

The company also said:

Loft appreciates the dedication of the employees who have left the company, is committed to helping them wherever possible to reestablish themselves in the market and regrets the loss of these professionals. The downsizing comes on top of other efficiency-enhancing measures taken in recent months after four years of aggressive and steady growth, both through organically developed products and through acquisitions. . With these measures, the 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 activities, offering innovative products to its customers, including real estate agents and brokers in across the country.

Loft aims to serve as a “one stop shop” for Brazilians to help them manage the process of buying and selling a home. Last year, Loft acquired Mexico City-based startup TrueHome and entered that market in what it described as the “beginning” of its international expansion. At that time, the company said it had become “the highest-revenue real estate e-commerce platform in emerging markets outside of China.

In April 2021, TechCrunch reported on São Paulo-based Loft closes a $100 million financing that valued the company at $2.9 billion. At that time, its founders told TechCrunch that the startup increased its valuation by $700 million within weeks. Since its inception in 2018, Loft has raised $800m in equity from an investor base including Baillie Gifford, Andreessen Horowitz (a16z), D1 Capital, QED and Tiger Global.

In 2020, Loft saw signups on its site increase “10 to 15 times,” according to co-founder and co-CEO Mate Pencz. When it last increased in April 2021, the company said it actively maintained more than 13,000 property listings in approximately 130 regions of São Paulo and Rio de Janeiro, in partnership with more than 30,000 brokers.

Earlier this year, the co-founder of Loft Kristian Huber said the company has “governance and compliance ready for U.S. capital markets,” but can “wait [for] the best time to go public,” reported Bloomberg line.

Similarly, another proptech in the region, the Brazilian digital real estate broker QuintoAndar, launched in June in Mexico City, marking the first time the startup has expanded outside of its home country. Last August, QuintoAndar announced that it had raised $120 million at a valuation of $5 billion. In April, the company dismissed 160 peoplei.e. 4% of its workforce.

It is clear that, like the United States, Latin America is also facing a slowdown due, among other things, to rising interest rates. In June, TechCrunch reported that Redfin and Compass had made layoffs this totaled about 920 people.

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