Opendoor Receives $400M Investment; $2 Billion from Banks

Opendoor, a San Francisco, CA-based online real estate marketplace to buy, sell and trade-in homes through a seamless transaction, received a $400M investment from the SoftBank Vision Fund.

In conjunction with the funding, SoftBank Investment Advisers’ Jeffrey Housenbold will join the Opendoor board of directors.
In addition, Opendoor also announced it has secured access to more than $2B in debt financing from top banks.

All this brings total amount raised to date to:
– $1.045 Billion in eEquity, and
– $2B in debt dinancing.

The company intends to use the funds to expand to new markets across the U.S., accelerate development of its technology platform.
Initiatives include:
– Developing a platform to buy, sell or trade-in a home in 1-click, starting with the integration of the recently acquired Open Listings buyer platform.
– Integrating additional services such as title and mortgage to make the transaction seamless.
– Investing in market-level pricing models across more than 50 cities to accurately price billions of dollars of real estate in real-time.
– Building applications that support and drive efficiencies across an ecosystem of local vendors – including contractors, landscapers, painters and home cleaners.

Founded in 2014 by Eric Wu, CEO, Opendoor provides an online real estate marketplace to buy, sell and trade-in homes.
For home selling, customers receive an online offer within 24 hours and sell with complete control and flexibility.
For home buyers, the company enables customers to visit, shop, and purchase homes 7-days a week — all from their mobile phone.
For trade-in customers, Opendoor is replacing the process of managing two separate transactions and risk of a double move with one seamless experience.
To date, it has served more than 20,000 customers nineteen cities including Atlanta, Austin, Charlotte, Chicago, Dallas-Fort Worth, Houston, Las Vegas, Los Angeles, Minneapolis, Nashville, Orlando, Phoenix, Raleigh-Durham, Riverside, Sacramento, San Antonio, San Francisco, Seattle and Tampa. The company expects to be in 50 cities by the end of 2020.

Opendoor has over 900 employees in San Francisco and Atlanta.

Beyond SoftBank Vision Fund, investors included included Access Technology Ventures, Andreessen Horowitz, Coatue Management, General Atlantic, GGV Capital, Invitation Homes, Khosla Ventures, Lakestar, Lennar Corporation, NEA, Norwest Venture Partners, 10100 Fund and others.

FinSME

27/09/2018

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