Proptech Startup Lessen Acquires SMS Assist for $950M
Lessen's acquisition of competitor SMS Assist will help the property-services firm expand its reach in rentals.
Bloomberg reported that Lessen secured $500 million in equity and debt to finance the deal. Monroe Capital and Invitation Home were also investors. Lessen, a real-estate management platform, connects property owners to cleaners, electricians, and other service providers. They specialize in large-scale renovations between tenants. This deal will allow Lessen to expand its client base in residential realty. The company will now be able serve 2.5 million maintenance requests each year, and 250,000 residential and commercial properties annually through the acquisition. Lessen will be able to perform minor repairs in addition to its current capabilities. This expertise is also available through the acquisition. According to the acquisition announcement, Lessen's inhouse project managers will oversee renovation work. Recent developments in proptech have been mixed. Scott Rechler's RXR announced last month that it had abandoned plans to combine a SPAC with a proptech firm and instead offered to return $345million to investors. There is still a need for funding in the proptech industry. Fifth Wall raised $866 million to fund a proptech fund. This was the largest dedicated venture fund ever. CBRE and Equity Residential were among the investors.
-- Holden Walter-Warner
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