Premium Apartment Rental Startup Dongnae Secured $21M Series A
Grace Mahas — March 24, 2022 — Business
References: techcrunch
Dongnae, a South Korea-based startup that helps tenants find premium apartment rentals, recently closed its Series A funding at $21 million. The investors include NFX, Daol Investment, Fursys, Han River Partners, Flybridge and Maple -- to name a few.
“Real estate had been my life for the last 10 years, so that was always on the top of my mind and before coming out to Asia, I had worked with Adam on the early planning for WeLive, which sparked an interest back then in residential,” said Matthew Shampine, the co-founder and CEO of Dongnae,. “Reflecting back on my experience looking at apartments in NYC and then doing it again in Korea, I started to piece together what would eventually become my next company.”
The company says its first mission is to tackle South Korea's unique rental system, known as "Jeonse." Tenants can lease apartments for no (or little) monthly payment by putting down a large deposit of approximately $600,000 (700 million KRW) for a two-year lease. Through Dongnae FLEX, renters can save approximately 98% on their housing deposits. Dongnae PLUS, on the other hand, allows tenants to access home services such as appliance and furniture rentals, Internet/cable access, and scheduled recurring.
Image Credit: Dongnae
“Real estate had been my life for the last 10 years, so that was always on the top of my mind and before coming out to Asia, I had worked with Adam on the early planning for WeLive, which sparked an interest back then in residential,” said Matthew Shampine, the co-founder and CEO of Dongnae,. “Reflecting back on my experience looking at apartments in NYC and then doing it again in Korea, I started to piece together what would eventually become my next company.”
The company says its first mission is to tackle South Korea's unique rental system, known as "Jeonse." Tenants can lease apartments for no (or little) monthly payment by putting down a large deposit of approximately $600,000 (700 million KRW) for a two-year lease. Through Dongnae FLEX, renters can save approximately 98% on their housing deposits. Dongnae PLUS, on the other hand, allows tenants to access home services such as appliance and furniture rentals, Internet/cable access, and scheduled recurring.
Image Credit: Dongnae
Trend Themes
1. Premium Apartment Rental - The rising demand for affordable, premium-quality apartments presents an opportunity for disruptive innovation in the real estate industry.
2. Flexible Rental Deposit - Developing a flexible rental deposit system can be a game-changer for tenants who want to save money while enjoying premium apartment rentals.
3. Value-added Home Services - Incorporating value-added services such as appliance and furniture rentals, Internet/cable access and scheduled cleaning into premium apartment rentals can revolutionize the rental industry.
Industry Implications
1. Real Estate - Real estate companies can take advantage of the growing demand for premium apartment rentals by offering innovative alternatives, such as flexible rental deposits.
2. Furniture Rental - Furniture rental companies can benefit from the rise of premium apartment rentals by partnering with property management firms to offer value-added services to tenants.
3. Home Services - Home services companies can tap into the growing premium apartment rental market by partnering with real estate companies to offer home services to renters.
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