HomeLight, which operates a real estate technology platform, announced today that it has secured $ 100 million in a Series D financing round and $ 263 million in debt financing.
Return sponsor Zeev Ventures led the equity round, which also included participation from Group 11, Stereo Capital, Menlo Ventures and Lydia Jett of the SoftBank Vision Fund. The funding brings the San Francisco-based company’s total raised since its inception in 2012 to $ 530 million. Equity financing brings HomeLight’s valuation to $ 1.6 billion, which is roughly triple what it was when it raised its $ 109 million in debt and equity in a Series C that was announced in November 2019.
Zeev Ventures led that funding round, as well as its Series A in 2015.
The latest equity is ahead of projected year-over-year growth “3x,” according to HomeLight founder and CEO Drew Uher, who projects the company’s annual revenue to triple to more than $ 300 million by 2021. By doing basic calculations, we can deduce that the company made about $ 100 million in revenue in 2020.
Over the years, like many other real estate technology platforms, HomeLight has evolved its model. HomeLight’s initial product focused on using artificial intelligence to match consumers and real estate investors with agents. Since then, the company has also expanded provide title and trust services to agents and home sellers and sellers matching with iBuyers. In July 2019, HomeLight acquired eaves as a gateway to the (increasingly crowded) home loan space.
“Our goal is to remove as much friction as possible from the home buying or selling process,” said Uher.
In January 2020, HomeLight launched its flagship financial products, HomeLight Trade-In and HomeLight Cash Offer. Since then, it has grown those products by more than 700%, Uher said, partly driven by the pandemic.
HomeLight’s Trade-In product gives your clients greater control over their move schedule and the ability to transact, and the Cash Offer gives people a way to make all cash offers on homes, “including if they need a mortgage, “he said.
“The pandemic only highlighted many of the pain points in the real estate transaction process that we have focused on solving since our founding,” Uher told TechCrunch. “Between the real estate industry’s historic information asymmetry, outdated processes, and unreasonable costs, not to mention today’s low-record inventory and the highest bidding wars of all time, buying or selling a home can be a challenge. incredibly difficult process, even without the challenges posed. place for a global pandemic. “
Then, in August 2020, the company acquired Disclosures.io and launched HomeLight Listing Management, with the goal of making it easier for agents to share property information, monitor buyer interest, and manage offers in one place.
In June 2021, HomeLight appointed Lyft President and former Trulia CFO Sean Aggarwal to its board.
Uher founded HomeLight after he and his wife felt the pain of trying to buy a home in the competitive Bay Area market.
“The process of buying a home in San Francisco was so frustrating that it made me want to bang my head against the wall,” Uher told me at the time of HomeLight Series C. industry. I went through some real estate agents before I found the right match. So when I found one, I felt empowered to compete and win against the other buyers. “
It started HomeLight with a single product, its agent search platform, which uses “proprietary machine learning algorithms” to analyze millions of real estate transactions and agent profiles. It claims to connect a client with a real estate agent on average “every 90 seconds.”
Over the years, Uher said that hundreds of thousands of agents have applied to be part of the HomeLight agent network and that he has worked with more than 1 million U.S. home buyers and sellers. the country. HomeLight maintains that it is not trying to replace real estate agents, but is working more collaboratively with them.
Uher said the company plans to use its new capital in part to expand its Trade-In and Cash Offer operations into new markets. The HomeLight trade-in and cash offer is currently available in California, Texas, and most recently in Colorado.
“We plan to expand as quickly as possible across the country,” Uher said. “We also plan to hire vigorously in 2021 and beyond.”
HomeLight currently has more than 500 employees, up from 350 at the end of last year. The company has offices in Scottsdale, Arizona, San Francisco, New York, Seattle and Tampa, and plans to open new sites across the United States in the coming months.
Oren Zeev, founding partner of Zeev Ventures, said he believes HomeLIght is better positioned than any other leading-edge technology company “to reinvent the transaction experience” for agents and their customers.
“With the emergence of iBuyers and other technologies introduced in the last decade, many technology technology companies are creating products to remove agents from the transaction process entirely,” Zeev wrote by email. “This is where HomeLight sets itself apart and uniquely stands out from its competitors … They are in the perfect position to revolutionize the industry.”