Houzz, the leading platform for home remodeling and design, has closed a $165 million financing led by early partner Sequoia with participation from existing investors Oren Zeev, New Enterprise Associates (NEA), GGV Capital and Kleiner Perkins Caufield & Byers (KPCB), as well as new participants DST Global and T. Rowe Price. The investment will be used to accelerate the company’s international expansion and to further build its technology platform and products for both consumers and home professionals. The company also announced the beta launch of the Houzz Marketplace, a marketplace for home products, and a redesign of its user experience.
“Since day one, we have been focused on creating the single best home renovation and design experience by bringing everything people need to improve their homes together under one roof,” said Houzz Cofounder and CEO Adi Tatarko. “This focus has enabled us to grow organically to over 25 million monthly unique users around the world. We now have a tremendous opportunity to meet the enormous demand for our platform and make Houzz synonymous with the home on a global scale.”
Houzz has grown significantly over the past year. The company’s brand advertising channel now counts the majority of top brands in the home furnishings and home improvement industries as partners. Houzz’s second revenue channel, its Pro+ local marketplace for professionals’ services, helps many thousands of subscribed professionals to build their brands locally. Both revenue channels have yet to launch outside of North America.
“First and foremost, Houzz created an incredible product that transformed the $300 billion home renovation industry in the U.S.,” said Alfred Lin, Houzz board member and partner at Sequoia. "It’s rare for a company to be able to achieve this level of hyper-growth and establish such a substantial business with three different revenue streams. We’re thrilled to invest again and to continue to help the team disrupt a massive global industry.”
“Houzz is the undisputed leader and innovator in the home improvement category, helping millions of homeowners and home professionals every day,” said Yuri Milner, founder of DST Global. “Houzz has only scratched the surface in terms of its potential and we’re excited to work with their visionary founders to help them transform home renovation around the world.”
Houzz Marketplace for Home Products
Houzz has built its offering and business by listening to its community of homeowners and home professionals and innovating to meet their needs. One of the biggest requests from Houzz users had been the ability to purchase products directly on the Houzz website and app. As a result, the company recently announced the beta launch of a home products marketplace to its community, which now has over one million products and materials available for purchase. With the Houzz Marketplace, Houzz is closing the loop for users, so that people can get everything they need to renovate or design their home in a single place.
Redesigned User Experience
As it solidifies its position as the only place for people to go for all their home improvement needs, whether they’re in the midst of a project or just browsing for ideas, Houzz has kicked off a redesign of its user experience. The new site simplifies the user experience, while keeping Houzz visually stunning and functional, and highlights the key actions people take on Houzz: get ideas, find a home professional and shop.
The simplified design of the new profile pages is consistent with the site’s new design language and gives users, particularly home professionals, even more control over how they present themselves on Houzz.
The design also incorporates a more prominent search function. Houzz has added filters so that people can browse its more than four million retina-quality photos by room layout, budget, size and specific features such as counter material, tile color and hardware finishes.
Since it was founded as a side project in 2009 to help its founders with their home remodel, Houzz has grown organically to over 25 million monthly unique users around the world – 90 percent of whom are homeowners – and over half a million active home professionals from architects, designers, contractors and more who are using the platform to build their brands, collaborate on projects and connect with homeowners. For consumers, Houzz provides an end-to-end resource for designing and renovating their home where they can find inspiration, get advice from the largest home community on the web, collaborate with others involved in the process, research and hire professionals, buy products, and manage home projects from start to finish.
Houzz UK and Houzz Australia launched this summer and the company will launch its platform in France and Germany this fall. Houzz has more than doubled its team to 300 employees since January 2014.