Opendoor, a San Francisco, CA-based online home-selling service, raised $135m in funding.
The round was led by Fifth Wall Ventures and Lennar with participation from Rialto Capital Management.
The company will use the proceeds to continue to expand its operations.
Led by Eric Wu, CEO, Opendoor provides a technology platform to sell a home online in minutes and streamline the transaction time, which traditionally involve a months-long closing process.
With the deal, Lennar, a large home builder and Opendoor will try to solve the inefficient process of buying and selling a home. Lennar will enhance the digital distribution channels for its financial products to transact a home, from mortgages, to title insurance, to home insurance, etc. while Opendoor will benefit from Lennar’s distribution through its Trade-Up Program — providing a new channel to access customers, which will broaden its scope and scale.
The above is a $135m equity and debt financing.
In details, Fifth Wall made a $100m investment with its anchor LP Lennar Corporation (NYSE: LEN and LEN.B). The $100 million in debt financing is in addition to a $35m equity investment led by Fifth Wall’s Fund, which includes Lennar as an investor, as part of Opendoor’s Series D.