Redfin has announced an investment of $70.9 million, led by large institutional investors including Wellington Management Company, LLP, as well as Glynn Capital Management, LLC. Other key investors include Brothers Brook, LLC, an investment firm led by Jeffery Boyd, chairman of the board of directors of The Priceline Group; and Annox Capital Management, led by Redfin board director Bob Mylod. Funds and accounts managed by T. Rowe Price Associates, Inc. and Tiger Global Management, LLC, who were among the investors from Redfin's $50 million funding round in November 2013, are also participating.
Redfin has doubled the number of markets it serves over the past year, and this funding will support continued expansion to offer Redfin's unique blend of full-service real estate and technology to millions of consumers. The money will also fuel Redfin's ongoing development of new technology that makes every step of the home-buying and selling process better for those consumers.
“Redfin will put this capital to good use,” said Redfin CEO Glenn Kelman. “As our business grows, our agents can be more local, and our ability to get people into homes quickly increases. With more market-share, we can pair buyers and sellers more efficiently. We have already seen this happen over the years in our most established markets, but now we can invest in accelerating that process in new markets.”
Previously, Redfin had raised $95 million.
Redfin is a leader in the category of end-to-end companies that begin with software but transform a real-world experience. The company now serves 48 major U.S. markets, with an award-winning website and mobile tools, paired with talented teams of Redfin real estate agents who are paid to put their customers first. Redfin real estate agents have completed $20 billion in home sales, and saved customers more than $200 million in real estate fees.
Technology: Redfin invented map-based real estate search, then built technology to make every step of buying or selling a home better, from on-the-spot tour-scheduling to an online deal room to a targeted digital campaign for each listing.
Advocacy: Redfin's on-demand service model takes the pressure out of working with its agents, who earn a bonus based not on the sale, but on the customer's satisfaction with the sale. Redfin agents fight to get customers a good deal but also tell customers when to walk away.
Value: Because technology frees Redfin agents to spend their time serving not searching for clients, the company can offer an average savings of $10,000 in fees for a customer who buys and sells with Redfin. The company refunds up to half of the buyer's agent fee, and saves a typical listing client 1.5 percent of the home value.
Source: Press Release