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According to foreign media reports, the United States Zeus Living has received $ 55 million in Series B financing, led by Airbinb, Comcast, CEAS Investments and TI Platform Management, as well as existing investors Alumni Ventures Group, Initialized Capital, NFX and Spike Ventures. After this round of financing, Zeus is valued at $ 205 million.
Zeus is a home rental company based in San Francisco, USA, founded by Srini, Kulveer Taggar, and Joe. Zeus redecorated the landlord’s house and leased it to resettled employees for periods ranging from one month to one year. Zeus’ service is very user-friendly. Through detailed decoration, it provides customers with a comfortable and relaxing accommodation environment.
How does Zeus make money?
Let’s take a look at how Zeus makes money through housing rental. From rent determination, contract signing, house renovation, housing selection to regular clearance, Zeus provides a one-stop service for landlords. In this process, the cost that the landlord has to pay is to provide Zeus with one month of free house use right each year and 10 days to find a tenant.
Let’s calculate this account. Let’s say Zeus rents a house from a landlord for $ 4000 a month, and then rents out the house to a resident at $ 5000 a month, so the monthly profit is $ 1000. In addition, every year the landlord provides Zeus with one month of free use rights, then Zeus can earn $ 16,000 per year.
In this process, the landlord does not need to worry about his property, because Zeus will compensate any loss caused by the resident . For issues caused by age, extended maintenance or natural disasters, Zeus willResponsible for maintenance or supervision, but the cost is borne by the owner.
In 2019, Zeus’ revenue has increased by 300%, and it currently has 250 employees and manages more than 2,000 houses. Zeus has hosted 27,000 residents for a total of 650,000 nights.
Aribnb and Zeus achieve win-win situation
David Holyoke, global head of Aribnb for Work, says modern workers travel more frequently and stay longer. More and more companies are seeking long-term accommodation and relocation solutions from Aribnb for Work. But Aribnb did not establish its own market in this area. Aribnb therefore invested in Zeus.
Aribnb can use website traffic to help Zeus drive customer demand, and Zeus can also find long-term customers for Airbnb.
Taggar said that Zeus and Aribnb can meet the ever-changing needs of business travellers and help them to feel at home.
Zeus website
The Series B financing will help Zeus expand to more communities and cities, while focusing on the breadth of each market so customers can choose more homes.
The challenges facing Zeus
Real estate technology has become a hot area, so Zeus will face fierce competition. For example, Domio, which has received $ 66 million in investment, and Sonder, which has received a huge investment of $ 360 million, are strong competitors to Zeus.
Over time, competition from companies like Zeus and Sonder will make rents paid to landlordsGold rises, causing profit margins to fall.
Initialized Capital co-founder Garrt Tan said that Zeus is very sensible to make a profit from housing rents because the profit in this market is very high. This collaboration with Aribnb has increased Zeus’s efficiency in establishing platforms in each city.
Initialized Capital co-founder Garrt Tan said that Zeus is very sensible to make a profit from housing rents because the profit in this market is very high. This collaboration with Aribnb has increased Zeus’s efficiency in establishing platforms in each city.