Just three months after the last funding equity round of the amount of around €7 million, led by one of the key European actors of Venture Capital (Project A Ventures), Casavo successfully raised more than €27 million with a top-tier European debt fund focused on technology, and one of the major Italian banks. Thus, Casavo can count on nearly €50 million raised as equity and in its 20 months of life.
“Debt fundraising is paramount for Casavo: our business model, in fact, is very capital intensive by its nature, since it involves the trading of real estate assets. Accessing the credit of a top-tier European debt fund and that of one of the main Italian banks gives us the opportunity to further boost 2019 transaction plan, which envisages the acquisitions of over 200 properties in Milan, Rome, Florence and Turin," stated Giorgio Tinacci, Founder and CEO at Casavo.
Moreover, Giuseppe Caputo, Vice President of Finance at Casavo, adds: “This deal represents an additional proof of our credibility on the financial markets. Closing a funding of this size implies that Casavo is appreciated even by more traditional lenders, in line with the strategic goal to optimize our cost of capital in the long run.”
The deal was concluded with the support of Rödl & Partner, with a team composed by Partner Gennaro Sposato and Associate Barbara Mateos Frühbeck, and of Chiomenti, with a team composed by Partner Marco Paruzzolo, Senior Associate Edoardo Canetta Rossi Palermo and Associate Michele Amisano.
Casavo, one of the first Italian Instant Buyers, instantly purchases residential properties - on average, it takes seven months to sell a residential property in the main Italian cities. The team behind Casavo, however, believes in a simplified transaction experience, i.e. the Instant Buyer (iBuyer) model. For sellers, they eliminate the hassle and uncertainty of valuation, renovation, viewings and months of waiting until finally finding a buyer. Casavo’s automated valuation engine takes more than 70 variables into account and immediately provides potential sellers with the fair value of their property - and a purchase offer. Upon acceptance of the offer, Casavo arranges a free inspection of the property and the seller receives the full cash payment within 30 days. The property is eventually renovated and sold to the next owner directly by Casavo. It's a clear and transparent process which fosters customer confidence and peace of mind.
So far, there have been 200 transactions during 2019 in Italy alone. Since its foundation, in just over a year and a half, Casavo has executed more than 120 transactions investing over 31 million euros and it has grown from 2 to 40 employees. More than 700 real estate agencies have joined Casavo’s network in Milan and Rome and others are still being added, including those in Turin and Florence, where the company has opened a few months ago. At the moment, Casavo has the financial capacity in order to reach 200 acquisitions in the course of just a calendar year: Casavo has already concluded over 30 transactions in May alone.