Sun. Aug 14th, 2022

Loft, a Brazilian proptech unicorn, has laid off about 380 employeesor 12% of its workforce, the company announced today.

The layoff marks the company’s second round of austerity measures this year so far. In April, Bloomberg had reported Linea that Loft had cut 159 jobs. That would mean Loft has let go of nearly 540 employees so far this year. It currently has about 3,200 employees.

In a press release, Loft — which it says it uses technology to simplify and enable real estate and credit transactions — described the move as “a reorganization of its operation.” It said the affected workers were the ones who “serve Loft and have taken over businesses”.

It added that affected employees would receive a special benefits package, including:

  • extension of the health plan for the holder and dependents by 2 months;
  • support of the professional relocation process;
  • facilitating participation in the stock option plan for eligible persons.

The company also said:

Loft appreciates the dedication of the employees who have left the company, is committed to assisting them in everything possible to move to the market and regrets the loss of these professionals. The workforce reduction comes on top of other efficiencies taken in recent months after four years of aggressive and consistent growth, both through organically developed products and through acquisitions. With these measures, the Loft Group is adapting to the new global realities and taking important steps to support the continuation of the current pace of strong growth in its business, by offering innovative products to clients, including brokers and brokers across the world. country.

In April 2021, BestFitnessBands reported on: Loft from São Paulo secures $100 million in financing values ​​the company at $2.9 billion† At the time, the founders had told BestFitnessBands that the startup had increased its valuation by $700 million within weeks. Since its inception in 2018, Loft has increased $800 million in equity financing from an investor base including Baillie Gifford, Andreessen Horowitz (a16z), D1 Capital, QED and Tiger Global.

Loft aims to serve as a “one-stop shop” for Brazilians to help them manage the home buying and selling process. Last year, Loft acquired a Mexico City-based startup, TrueHome, and entered that market in what it described as the “start” of its international expansion. At the time, the company said it had become “the highest-selling real estate e-commerce platform in emerging markets outside of China.”

In 2020, Loft saw the number of listings on its site increase “10 to 15 times,” according to co-founder and co-CEO Mate Pencz. At the time of its latest increase in April 2021, the company had said it was actively servicing more than 13,000 real estate listings in about 130 regions in São Paulo and Rio de Janeiro, partnering with more than 30,000 real estate agents.

Earlier this year, Kristian Huber, co-founder of Loft, said the company had “governance and compliance ready for the U.S. capital markets” but “the best moment could wait to go public,” it reported. Bloomberg Linea.

Likewise, another proptech in the region, Brazilian digital real estate broker QuintoAndar, launched in Mexico City in June, which marks the startup’s first expansion beyond its home country. Last August QuintoAndar announced that it… $120 million raised at a valuation of $5 billion. In April, the company 160 people laid offor 4% of the workforce.

It is clear that, as in the United States, Latin America is also experiencing a slowdown due to, among other things, the rise in interest rates. In June, BestFitnessBands reported that Redfin and Compass have been laid off that together amounted to about 920 people.

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