US: Apartment rental company Sonder has raised US$170 million in a Series E round, which was led by Fidelity Funds, Westcap and Inovia Capital.
The raise takes the company’s valuation to $1.3 billion. Sonder said it expects to raise additional capital from new and returning investors that will bring the total round to around $200 million.
The Series E round brings Sonder’s total venture funding to-date over $560 million. Additional investors in the round include Spark Capital, Greenoaks, Valor Equity, Greylock, Gavin Baker’s Atreides Capital, Tao Capital (Pritzker family) and Lennar.
Despite cutting its workforce by a third in late March, Sonder has weathered the pandemic better than many of its masmterlease model peers, maintaining a 75 per cent occupancy rate across its properties.
The company said in a statement: “Our Series E would not have been possible without the strong relationships we’ve forged with property owners, who have partnered with us to adjust lease terms. This, along with some extraordinary, and at times painful, cost-cutting measures, have allowed us to maintain a strong cash position, crucial to the long-term success of the business. With this new funding, our priority is to scale Sonder carefully and responsibly. We will continue to engage with our real estate partners about new exciting locations as well as innovate on the guest experience and continue to ensure Sonder remains a great place to work for our employees. We’re excited to develop new ways to deliver a better stay for our guests including new features, services and partnerships. Our work has only just begun, but we are optimistic about what the future holds for Sonder, our guests and the future of travel.”</p
