New technology platforms are changing the real estate industry, and Sumeru is always looking to partner with innovative software companies that have a strong foundation for long-term growth. Boston-based Buildium was simplifying residential property managers’ lives by bringing the various functions of the management process together in a single, fully integrated SaaS offering.
Buildium was growing, but its founders still faced challenges in determining the best path forward. After doing extensive thematic work in the market for real estate technology, Sumeru Equity Partners saw the potential in Buildium and acquired a majority stake. Over the next three years, we partnered with the founders and management team to double the company’s size through aggressive organic growth and a strong focus on enhancing the customer experience.
Early on, Sumeru developed a plan and provided the capital to help Buildium expand its product offerings while growing its business rapidly and more efficiently.
Sumeru and the Buildium team created a strategy to move up-market by enhancing the product offering, adding new support capabilities, and hiring a dedicated sales team. This resulted in a significant increase in average revenue per customer. We also helped the company cut churn in half by creating a customer success team and streamlining the onboarding process.
As Sumeru’s relationship with Buildium continued, we worked with the company to recruit a talented C-suite team that could help scale the company and improve its efficiency. We expanded the company’s technology platform to include tenant payments and credit card processing, and, as the company crossed into profitability, the annual organic revenue growth rate accelerated from 25% to 40%.
Buildium’s impressive growth and strong market presence made the company an attractive acquisition target. In December 2019, Buildium was acquired by a public company for $580 million.