Opendoor and Offerpad start huge funding rounds to keep up with demand

For websites listings hundreds of thousands of homes at the same time, it can get a little pricey, according to both Opendoor and Offerpad, two real estate platforms that will buy your home off of you on the spot.

These two real estate companies are leaders in the increasingly competitive “iBuyer” market, and they’ve both raised gobs of cash to buy and sell more houses, up their product offerings and expand to more markets. Both announced blockbuster nine-figure funding rounds in just the past week.

These huge raises come as Seattle real estate heavyweight Zillow embarks on a big shift and goes all in on buying and selling homes directly. The war chests amassed by Opendoor and Offerpad demonstrate how much capital is required to buy homes from sellers, fix them up and then sell them directly to buyers in a market that is becoming more competitive all the time as new companies jump in and incumbents continue to grow.

Opendoor recently raised a whopping $300 million at a valuation of $3.8 billion, TechCrunch reported. Opendoor is currently live in 20 markets, and it has raised $1.3 billion in equity and $3 billion in debt over its lifetime.

Offerpad recently announced a Series C round that brought its total debt and equity funding to $975 million. The company declined to say how much it raised in this round specifically, and it is unclear how much is equity versus debt. A few days later, Offerpad announced plans to expand to its 13th and 14th markets: Austin and San Antonio.

Zillow last month unveiled a surprising plan to refocus the bulk of its energy around buying and selling houses. It’s a bold move to disrupt the housing market, and to accomplish that goal, Zillow wants to exert influence over the entire process, from finding a house — which was the company’s original business — to buying it, to financing it.

Read more here

Join us in Miami Beach, June 5-7 for the Global Online Marketplaces Summit.