Sonder raises $85 million in Series C funding round

George Sell By George Sell
26 August 2018 | Updated 26 August 2018

US: Boutique apartment rental startup Sonder has closed an $85 million Series C round of funding.

Greenoaks Capital led the round, with Greylock, Spark Capital, Structure Capital, and Harbourvest all participating. The San Francisco-based startup has raised $135 million to date.

CEO Francis Davidson, 25, said Sonder was on course to generate $100 million in revenue this year. The company has hosted more than 200,000 guests since it launched. It leases or manages 2,200 units across 11 cities in four countries.

Founded by Davidson and Lucas Pellan in 2012 as a platform for subleasing apartments, Sonder rebranded in 2016 to pivot from subleasing and focus on the short-term rental market. The company leases all of its managed units directly from developers.

The startup fully licenses its properties to avoid local regulatory disputes. In some cities that may mean operating as a property manager, in others as an extended-stay (minimum 30-day stays) renter. In others, it gets a hotel license. It hires local staff for housekeeping, maintenance, and greeting guests. It has more than 350 employees.

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