PropTech Homelight raises $115m in troubled real estate market

PropTech firm HomeLight has reportedly raised $60m in capital and $55m in debt financing, as other real estate companies announce mass layoffs.

This $60m equity injection is an extension to HomeLight’s Series D, which closed on $100m in September 2021. The round had valued the business at $1.6bn, but the fresh capital has brought its valuation to $1.7bn, according to a report from TechCrunch.

Oren Zeev, the founding partner of Zeev Ventures, supplied the full $60m, it said.

Alongside the close of the funding round, the company has acquired Denver-based lending startup in an all-stock transaction. The FinTech company helps homebuyers quickly and easily get a mortgage with an all-cash offer.

HomeLight hopes this acquisition will allow more of its agents and clients to benefit from the power, speed and certainty of contingency-free transactions.

Based in Arizona, HomeLight aims to let homeowners sell their property quicker and for more money.   

Initially, HomeLight will analyse millions of real estate transactions and compare agents near to the seller and how well they sold properties. Its platform also handles the prep work, so sellers only come into the process when there are offers from buyers.

Its HomeLight Simple Sale taps into a network of pre-approved cash buyers who compete to buy the home. This is a free service and there are no obligations to accept offers.

Earlier this week, it was reported that real estate brokerages Redfin and Compass are laying off a big part of their teams. A report from CNBC claims Compass is cutting 10% of its workforce and Redfin is cutting 8%.

A number of PropTech companies have raised capital over the past couple of weeks.

Real estate crowdfunding platform Foxstone, which is based in Switzerland, reportedly raised CHF 10m ($10m) in its Series A.

In other PropTech news, M. Night Shyamalan was among the investors in Knock, a mobile platform helping homebuyers get their dream home. The company raised $220m in a funding round

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