Spotahome, a Madrid-based start-up for property selection and reservation, has reportedly acquired the international student community Erasmusu.
This is the first acquisition of Spotahome, meaning that the company will add up to 700,000+ more properties to its rental inventory and access “the largest network of Erasmus students in Europe, as CEO Alejandro Artacho says in an interview with Tech Crunch that reported on the news.
“Terms of the deal remain undisclosed, though I understand the purchase price is “several million” Euros (update: one source pegs it at €2 million) and was a mixture of cash and stock.”, as Tech Crunch comments on the collaborative agreement between the two companies.
Erasmusu claims 23,557 blog entries, 71,286 accommodations, and 64,387 roommates, among other numbers. The project has no VC backing but states they have 2 million visits per month. Probably, that is what made them an attractive acquisition opportunity for Spotahome. And Erasmusu has managed to create an online community for Erasmus students, who discuss the aspects of international student life. Some of them feature accommodation and that is why the platform added classified ads for rentals. Then, they evolved into a transactional model in 2015.
Spotahome that is something like a competitor in the space has decided to invest in acquiring Erasmusu. Still, Tech Crunch states in their article that the two sites will be independent. If this is the case, it is no problem for Spotahome to expand its reach in the countries where Erasmusu has gained a market share.
It is interesting to see how acquiring Erasmusu will affect Spotahome and the way they perform in the industry. In any way, the popularity of Erasmusu among international students can prove to be an important asset.