Zeus Living, a mid-term housing startup, is closing its doors and laying off all of its staff, approx 120 employees, due to financial struggles.
Zeus Living, a mid-term housing rental and property management startup that once seemed poised for greatness, is shutting down its operations.
The company recently informed its landlords of its dire financial situation, revealing that it can no longer guarantee payments on homes. This announcement comes at a time when the entire industry faces challenges, particularly due to the increasing interest rates.
Other Real Estate companies like Homie or Zillow are also facing layoffs.
Zeus Living (Backed by Airbnb) distinguished itself from the likes of Airbnb by focusing on mid-term rentals, offering homes for stays lasting 30 days or longer.
What set them apart even further was their commitment to redecorating and furnishing properties, ensuring a seamless and comfortable experience for relocated workers and corporate travelers.
This approach aimed to provide guests with more flexibility and less commitment, which was especially appealing to a niche audience.
The startup, founded in 2015, had managed to raise an impressive $125 million over the years, including a significant $55 million Series B round with participation from Airbnb in December 2019.
More recently, they secured another $55 million in funding in October 2021. This financial backing, coupled with an estimated valuation of $205 million just four years ago, hinted at a bright future for the company.
At its peak, Zeus Living had a portfolio of nearly 5,000 homes spread across 96 cities, including Austin, Miami, Philadelphia, and Portland. Their unique approach to property management and a keen focus on customer satisfaction had attracted a loyal customer base, making them a formidable player in the mid-term housing rental market.
Unfortunately, the journey hasn’t been without its share of turbulence. The COVID-19 pandemic took its toll on Zeus Living, forcing them to make the tough decision of laying off 156 of their staff during two separate rounds of layoffs. However, CEO Kulveer Taggar later revealed that many of these employees found their way back to the company, demonstrating the resilience and determination of the Zeus team.
Zeus Living had garnered the support of various investors, including Initialized Capital, CEAS Investments, TI Platform Management, NFX, Comcast, Alumni Ventures Group, and Spike Ventures. Their backing was a testament to the startup’s potential and the belief in their innovative approach to mid-term rentals and property management.
As Zeus Living prepares to wind down its operations and lay off 100% of its staff, it marks the end of an era in the real estate tech sector. The company had not only offered a unique alternative to traditional housing but also brought a new level of convenience and comfort to corporate travelers and relocated workers.
