Knock, a FinTech company that helps customers finance homebuying, has raised $220m in funding.
The funding comprises $70m in equity and $150m in new debt. The round was led by Foundry Group with participation from existing investors First American Financial and RRE Ventures as well as new investors, including the National Association of Realtors, director/producer M Night Shyamalan and Mauricio Umansky, co-founder of luxury real estate brokerage The Agency.
Knock flagship product Home Swap enables consumers to buy the home they want before selling their current home.
The funding announcement comes nearly a year after Knock hired Goldman Sachs to explore opportunities to take the company public at a valuation of $2bn.
Sean Black, Knock co-founder and CEO, said the capital raised is much less than what the company set out to raise in its IPO, requiring it to rightsize.
Nevertheless, in the last 12 months, the company said it has achieved double- and triple-digit growth in transactions, revenue and gross profit and grew from 14 to 70 markets nationwide. It also entered five additional markets in and around Seattle in early 2022, expanding the company’s presence to 75 markets.
Black said, “We will continue to partner with the industry to make all homebuyers Power Buyers. Being able to compete with cash buyers is more important than ever, and Knock Home Swap and Knock GO™ (Guaranteed Offer) provide a certain, convenient and cost-effective way for agents to help their clients navigate today’s housing market.”
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