Real estate and mortgage startup Homie raises million
Real estate and mortgage startup Homie, which launched in 2015 in Utah and expanded into Arizona in 2018, is now set to move into three new states after the company raised $23 million in new funding.
Homie announced Wednesday that it recently closed its Series B equity round of financing, in which the company raised $23 million. Last year, the company raised $10 million in its Series A funding round.
With the new funding in its coffers, Homie plans to expand beyond Utah and Arizona into three other states.
The company has been in growth mode for several years now. The company started as a flat-fee real estate company, before expanding into mortgage lending in 2017. Homie now also offers title insurance and homeowners insurance.
The goal of these expansions is to build an “end-to-end home selling and buying platform,” the company said.
Homie continues to operate its flat-fee model, charging homeowners $1,500 to sell their home. And according to the company, its model is working.
The company claims it was the “#1 residential real estate brokerage office in Utah by transaction volume and transaction value in 2019,” completing more than $1 billion in total real estate transactions in Utah and Arizona last year.
The company also saw 150% revenue growth last year.
“We are grateful to visionary investors who recognize the massive shift that’s happening in how consumers buy and sell homes,” said Mike Peregrina, CFO and co-founder of Homie. “This capital prepares us for the launch in three new states, but most importantly, it will help consumers save millions of dollars in excessive fees and commissions.”
According to details provided by the company, it plans to launch in Las Vegas next month, and is evaluating launching in Boise, Idaho; Colorado Springs, Colorado; Seattle; and Dallas later this year.
The company did not identify the investors participating in this funding round.
“Buying or selling a home is expensive and time-consuming because of all the different companies you have to work with,” said Johnny Hanna, CEO and co-founder of Homie. “Communication becomes a game of telephone because of all the parties involved. We are disrupting the traditional model and saving customers thousands of dollars by combining technology, a team of experts, and a one-stop-shop for real estate. Technology has changed everything except the real estate business model. That time has finally come.”
[Update: This article is updated with details on Homie’s expansion plans.]
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