French proptech Masteos raises 40 million euros to become Europe’s leader in rental investment


Turnkey rental investment proptech is completing a 40 million euro fundraiser from DST Global Partners, Daphni and its own employees to establish itself as a European leader.

Proptech start-ups are proliferating. Masteos, a French proptech for turnkey rental investment, announced today that it has completed its 40 million euro fundraiser from DST Global Partners, from Daphni, nine months after raising 15 million euros. Start-up employees also participated in this funding round up to 10%.

Masteos has a strong commitment: to support individuals at every stage of their rental investment through an application. The Parisian start-up thus oversees the most complex and time-consuming phase of operation, from property selection and modeling its financial performance to its renovation, furnishing and rental. The whole process is thus managed remotely. “Almost half of our customers don’t visit the property they buy,” confides JDN Thierry Vignal, co-founder and president of Masteos.

This attraction for rental investment is currently experiencing intense interest in an uncertain economic context and with high inflation. “We believe there has never been a better time to invest in real estate at a time when we are borrowing at negative real interest rates”, Thierry Vignal underlined to whom rental real estate is the strongest defense against inflation.

These arguments are best met with a young client with a first time investor profile but also with expatriates. The start-up, which recorded record sales in June, is thus attracting more young workers in their thirties who are attracted by the idea of ​​using an application to make all their investment. remote rental.

This new round of funding led by DST Global Partners (Twitter, Spotify, Sunday, etc.) and Daphni (BackMarket, Made.com, Winamax, etc.) should make it possible to accelerate and recruit new employees for its three main activities: transactions, construction/renovation and leasing management. The aggregation of these trades is certainly Masteos ’primary asset as its competitors often choose to subcontract with service providers. The vertical integration of these businesses reassures customers. “We don’t have real competitive pressure”, its founder defined. Even the large network of real estate agencies that Masteos considers more partners, especially for property acquisition.

Mastering the entire value chain necessarily involves meaningful recruitment. The proceeds will be used to recruit 300 new employees in 2022 alone, and 500 more in 2023. Masteos also plans to use its funds to improve its technology to allow, for example, to track evolution. of a site or rental performance from your smartphone.

Progress in France and going international

This 40 million envelope should allow Masteos to expand its presence not only in the 50 largest cities in France by 2023, but also in the United Kingdom and Germany from the end of 2022, pending openings. in Italy, the -Bas and Portugal. The start-up is already present in Spain and Belgium and aims to be Europe’s leader by 2024. French proptech has not been prevented from crossing European borders for a long time. “Translating our application into English for the UK market will allow us to establish a first bridge towards a future launch in the US”, confides Thierry Vignal.

This national and international network is also an additional argument for Masteos customers who may have suggested acquisitions in cities where profitability is strong. Local Masteos employees take care of finding a property and oversee the renovation and management of its rental. In return, the company takes a commission of 5% of the sale price and 5% of the rents. Not yet profitable, Masteos currently chooses to invest in its growth to transform the investor experience through technology. “The current context of the crisis will force us to focus on the tightness of our fixed costs”, however, Thierry Vignal pointed out.

A sign of the dynamism of the tricolor proptech sector, more than 400 start-ups in the sector have been born in France over the past four years. Start-ups that conducted 44 rounds of funding in 2021 and alone have amassed approximately 628 million euros in investments. Masteos knew there was nowhere to go and had no intention of stopping there. “Despite the unfavorable economic environment, we already have promises from some shareholders to launch a B series at the beginning of next year”, Thierry Vignal confessed to JDN. Itutuloy.

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