Berlin-based proptech McMakler GmbH has raised €8.5 million in a second round of funding led by Frog Capital, which touts the company as Germany’s fastest growing estate agency.
Frog Capital's Jens Düing says McMakler is in a very large and attractive market.
"Compared to about 30 PropTech companies launched in the past year, McMakler is the most convincing and sustainable business model," he says.
Just a year after its launch, Düing says McMakler is active in 17 metropolitan areas and offers customers a combination of traditional personal advice from highly qualified agents and the advantages of online and mobile communication and marketing technology.
The capital raised will be invested to accelerate the expansion of nationwide property sales, which currently account for about 20 per cent of the company’s business.
McMakler cofounders Hanno Heintzenberg and Lukas Pieczonka add the funds will also be used to invest in innovative new features for the company's core platform as well as the build-out of its proprietary real estate software.
“We have the ambition to be the technology leader and to run the estate agent business as efficiently as possible," says Heintzenberg who is also the McMakler CEO.
"However, an algorithm cannot completely replace the confidential conversations by an agent and a landlord, a buyer or a renter. Our strengths are technology expertise, an understanding of human nature and market knowledge.”
Frog Capital Managing Partner Mike Reid confirms the investment and brokerage firm see McMakler as a very special proposition.
"Created and run by a team that includes some of Germany’s most successful entrepreneurs, McMakler is already the leading hybrid internet player in the largest residential property market in Europe," he says.
"McMakler’s homeowner offering is a major step up in terms of service and value, and one that will improve even further as the business scales.
Reid adds the hybrid estate agency model is proven and gaining significant momentum, as demonstrated by the UK’s Purplebricks going from start-up to £320m enterprise value within 2.5 years.
"Comparatively, McMakler has a massive opportunity in a larger market with less online competition. We look forward to working with the team to make it happen.”
Other investors in the round included Piton Capital, Mutschler Ventures and Cavalry Ventures.