US: Furnished apartment provider Zeus Living has raised about $15 million in equity and debt.
The company, which has been backed by Airbnb, raised the money at roughly half the valuation it commanded five months ago, as the coronavirus pandemic continues to impact the hospitality sector.
According to a report on Bloomberg, the new funding came from existing investors CEAS Investments I, Initialized Capital Management and Soros Fund Management. The company was reportedly worth about $205 million in a funding round in December 2019.
The Bloomberg report quotes anonymous sources close to the deal who said Zeus “raised the money in part because it didn’t have enough cash to comply with a covenant tied to a loan from Soros”.
Zeus, led by CEO Kulveer Taggar, has rented some of its 2,000+ homes to health-care workers and people escaping densely populated cities. Its occupancy rate is above 70 per cent so far this month, with large technology companies maintaining their contracts with the company, the report added.</p
