Zeus Living, a prominent player in the proptech sector with backing from Airbnb, is facing significant challenges and is now reportedly in the process of winding down its operations.
This turn of events comes as a noteworthy development in the world of property technology.
Zeus Living had garnered substantial financial support, raising a total of $150 million in debt and equity, with approximately $125 million of that sum representing equity investments. Its investor roster included notable names such as Initialized Capital, CEAS Investments, TI Platform, NFX, Eric Wu of Opendoor, and the prestigious Y Combinator, in addition to Airbnb’s support.
Established in 2015, Zeus Living initially embarked on its journey by redecorating landlords’ properties and renting out these furnished dwellings to relocated workers, particularly those seeking 30-day stays or longer as a unique form of corporate housing.
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As time passed, the company expanded its scope, transitioning into a platform that extended its services to not only corporate employees but to a broader audience, providing greater flexibility for people looking to relocate without a long-term commitment. Zeus Living took pride in the fact that it was not a mere marketplace but rather directly managed the homes listed on its platform, overseeing aspects ranging from curation and design to property management and service.
As of October 2021, the company secured $55 million in funding, with CEO and co-founder Kulveer Taggar expressing intentions to use the capital to increase its portfolio of homes. At that point, Zeus Living was still benefiting from the remote work trend that had been accelerated by the onset of the COVID-19 pandemic.
However, a significant shift occurred due to the dramatic increase in interest rates, reaching their highest levels in two decades. This change made it notably more challenging and expensive to acquire homes and had a direct impact on the revenue generated by companies like Zeus. According to reports, the company informed landlords in an email that it was facing financial difficulties and would no longer be able to meet its payment commitments for the properties.