- AI-based full-service residential broker REX announced it has raised $40 million in Series C1 funding
REX — a fast-growing and full-service residential broker that offers a more effective and less expensive way to buy and sell homes using big data and AI — announced that it has raised $40 million in Series C1 funding to complete its national expansion and broaden the availability of mortgage, insurance, escrow, and other services it offers.
Operating in 23 cities in 17 states, REX is one of the very tech companies in the residential real estate industry to raise over $100 million in private equity to back its business. And REX harnesses new technology to take the stress and confusion out of buying and selling homes. Plus it lowers consumer cost through a transaction-total commission of 2% compared to the 6% charged by most traditional brokers.
“REX offers buyers and sellers a less expensive, more effective and far easier way to conduct the most important transaction of their lives,” said REX co-founder and president Lynley Sides. “In contrast to the outrageously high charges levied by the MLS realtor cartel, REX helps families preserve their hard-earned savings.”
By utilizing data science, machine learning and artificial intelligence, REX is able to price homes more accurately than traditional brokerages. And then it targets them to qualified buyers through Zillow, Google, Facebook, Trulia, etc. The company’s licensed agents are salaried and incentivized to focus their attention on the customer experience versus commission. And REX makes home buying and selling simpler by offering escrow, titling, mortgage and insurance, all in one place and at competitive rates.
“REX is leading the transformation of an industry that remains stuck in the past and doesn’t provide the value for money that consumers expect,” added REX board member Scott McNealy, co-founder and former CEO of Sun Microsystems. “It’s shown impressive progress in building out its technology and services this year and we’re pleased with the way consumers are responding.”
One of the leaders in this round is Citadel LLC founder and CEO Ken Griffin. Citadel is a leading firm in the trading of financial securities.
“It is terrific to see the advancements that have driven down the cost of trading stocks and bonds being applied to the real estate markets,” Griffin explained. “I look forward to supporting REX as it uses predictive analytics and transformative technology to make the dream of homeownership a reality for far more Americans.”
This year, REX increased listings handled year-on-year by over 300% and expanded in multiple new markets. Since REX launched at the end of 2015 in Southern California, the company has represented homes cumulatively valued at over $2 billion and in the process has saved customers over $16 million in fees they would have otherwise paid to traditional brokers. And For every 50 homes it sells, REX builds one new home for a family in need.
Including this round of funding, REX has raised $115 million in funding from private investors like McNealy, Griffin, Best Buy founder Dick Schulze, Crate and Barrel founder Gordon Segal, former SVP of search at Google Amit Singhal, chair of Carlson Diana Nelson, former CEO of McDonald’s Jack Greenberg, Madison Dearborn Partners co-founder Jim Perry, and Satter Investment Management chairman Muneer Satter.