WeWork’s poor IPO and falling share price has not deterred belief in Bungalow’s co-living business, which has a business model not unlike coworking, but subdivides homes and rents out the rooms.
This week the company announced a new $47 million fundraise, including a $15 million Series A extension and a new $32 million Series B round, bringing investment to $68 million raised in total.
Bungalow manages over 700 properties in ten US cities, with 3,200 residents, furnishing the common spaces, screening and matching residents via an app, and converts extra space such as dens or dining rooms into bedrooms. Its aim is to address housing affordability and isolation.
Bungalow combines and uses models similar to both WeWork and Airbnb, taking fees in different ways based on rent and guest payments.