Proptech startup Dongnae mentioned Tuesday it plans to procure Stevens, a South Korean corporate that operates co-living industry Dears.

The 2 firms didn’t expose the purchase worth, however Dongnae mentioned it is going to acquire Stevens with a mixture of money and fairness. The Seoul-based proptech outfit up to now raised a complete of $34 million, together with a $21 million Collection A spherical it introduced ultimate yr. Dongnae expects to near the transaction by means of the top of September. The corporate’s buyers come with the likes of NFX, Daol Funding, Hana Monetary, MetaProp, Maple VC and WeWork co-founder Miguel McKelvey.

Dongnae’s number one product, Dongnae FLEX, provides a furnished rental condo on its platform with versatile hire phrases for as quick a length as 4 weeks and decrease condo deposits.

The addition of Dears will permit the corporate to improve the Dongnae FLEX provider, handle homes “with a collective AUM of over $400 million,” and span 90 rental complexes throughout Seoul and Pangyo, the place a bunch of tech companies, together with Kakao and Naver, are positioned. Dears Pangyo has greater than 520 studio flat gadgets in Pangyo.

The outfit additionally will co-manage the Dears Myeongdong construction in Seoul along Xi S&D. Dongnae will handle business areas of Dears Myeongdong, consisting of B1, 14F and the rooftop, co-founder and CEO Matthew Shampine mentioned, including that Xi S&D will function Dears Myungdong’s 112 gadgets that supply each short- and long-term remains.

Dongnae says that is its first acquisition. The present management staff at Stevens will sign up for Dongnae to fortify enlargement and proceed to construct on their growth so far, Shampine instructed TechCrunch.

“We’re in lively discussions with plenty of landlords and land builders to open extra constructions to be operated as and thru Dongnae,” Shampine mentioned.

Former WeWork executives Shampine and Insong Kim co-founded Dongnae in 2020 to digitize South Korea’s fragmented actual property marketplace. In South Korea, other people need to paintings with dozens of agents to discover a new house, and there are two choices to pay hire within the nation: paying a per month price (identical to in lots of portions of the arena) and paying the entirety upfront, known as Jeonse.

Through offering Dongnae’s signature decrease condo deposits on a versatile, temporary foundation, the co-founders wish to take on Jeonse, the rustic’s distinctive residential condo device. The program lets in tenants to hire an rental with a big lump sum deposit, which is about 70% of the home valuation, with out paying per month condo charges.

“Since our Collection A in March of 2022, we have now been excited by rising our actual property portfolio, getting buyer comments, and construction the important front- and back-end generation to actually create a greater option to hire properties in Korea,” Shampine mentioned.

The corporate has invested “closely” in bettering the client enjoy since ultimate yr. The outfit says it has digitized all the process as an alternative of the everyday lengthy, paper-filed leasing procedure and introduced its personal virtual actual property marketing consultant Suzie by means of integrating synthetic intelligence into its platform. Like a chatbot, Suzie solutions potential citizens’ questions on housing or Dongnae’s gadgets in any spoken language.

“From Adam Neumann’s Go with the flow and corporations similar to Mint Area, Zeus Dwelling, and Blueground in The usa to Asian and Eu startups like Cove and Habyt — there was nice innovation within the residential condo marketplace around the globe during the last few years,” Shampine mentioned in a commentary. “Our staff is dedicated to bringing about a greater option to hire right here in Korea.”

Dongnae’s software is now to be had for obtain on Android and iOS.


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