Opendoor, a service that enables users to receive an offer on a home in just a few clicks, has raised $300 million in funding at a valuation of $3.8 billion according to TechCrunch’s sources. Including this round, Opendoor raised about $1.3 billion in funding.
The investors in this round include General Atlantic, Hawk Equity, SoftBank Vision Fund, Access Technology Ventures, Lennar Corporation, Fifth Wall Ventures, SV Angel, Norwest Venture Partners, NEA, GGV Capital, Khosla Ventures, and GV. Several months ago, Opendoor had raised $400 million from Softbank Vision Fund and the company secured $2 billion in debt financing from several top banks.
Homes sold through Opendoor are done through an online exchange. And then Opendoor will assess the home and determine an appropriate offer. Then the home will be sold to a buyer. This removes a number of pain points that comes up during the home selling process.
Founded by Eric Wu (CEO), Ian Wong (CTO), JD Ross (head of growth and product), and Keith Rabois (executive chairman), Opendoor currently operates in Phoenix, Dallas, San Antonio, Las Vegas, Atlanta, Nashville, Charlotte, Raleigh-Durham, Orlando, Tampa, Minneapolis-St. Paul, Houston, Sacramento, Riverside, Denver, Portland, Austin, Jacksonville, Tucson, and Los Angeles.
“Our business is designed to operate in up markets, down markets and flat markets,” said Wu in an email to TechCrunch. “During a slowdown, it becomes increasingly more painful to sell a home, which impacts mobility for homeowners and increases the need for reliable home sales through products like Opendoor. It is our responsibility to manage that risk and charge the proper fees to account for the volatility.”
Last year, more than 800,000 people toured Opendoor homes. And the average time a home is held on its books is 90 days compared to 140 days in 2015.
This round of funding will be used for product development. And the company will be expanding further in North America.
