Debt Raise and Sale of Canadian Operation Nets U.S. Portal Operator Ojo Labs $200m

February 8, 2023
Share this Post: 

The U.S. real estate portal operator Ojo Labs has announced a deal to sell its Canadian operations to Royal Bank of Canada as well as a deal to raise debt from Vista Equity Partners.

The Royal Bank of Canada is the largest mortgage lender in its market and has been an investor in Ojo since 2018. The bank takes over Ojo Labs' portal and its 100 or Canadian employees as it looks to connect with Canadian house hunters further up the lead funnel.

The fresh capital will help the company compete with the likes of Zillow and in the U.S. housing market with Ojo's CEO John Berkowitz telling Insider that the combined deals are worth around $200.

"We put the company in an extremely healthy cash position, while others are having to retrench," Berkowitz told Insider. "It's in times like this that we accelerate our growth."

The injection of capital comes at a good time for Ojo with the U.S. housing market experiencing a downturn and the looming threat to its market share of a possible CoStar Group takeover deal for

Austin, Texas-based Ojo operates the Movoto portal in its native market which it bought from Japanese real estate company Mitsui Fudosan for $62 million in June 2020. It is one of the few portals worldwide to employ a pure success-based business model with agents only paying up to 35% of their commission when they transact a lead.

February 8, 2023
Since March 2020 Edmund's job has been to read about, write about, collect data on, analyse and generally know about real estate marketplaces and the companies that run them. Before that he worked at the aggregator Mitula Group (which became Lifull Connect) for five years.

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

People Roundup 20 June 2024
People Roundup: CoStar Group, Holo, Dubizzle

This week's people roundup is finance-heavy, with two CFO appointments coming out of Asia and the United States.   CoStar...

Read More
Aggregators Article Hero Imaghe
What Are Real Estate Aggregators and Are They About to Disappear?

Looking back at the talking points from Property Portal Watch 2010 it seems that classifieds aggregators caused a stir in...

Read More
Houseful Rebrand
Houseful (Zoopla) Launches "Movemnt" Transaction Infrastructure for Property Professionals

Houseful has launched "Movemnt", a free-to-use national home transaction infrastructure for all estate agents, conveyancers, mortgage lenders, and brokers. Movemnt joins...

Read More
Untitled Design 15 1 Releases Next Stage of Its Buyer Agency Advertising Campaign, the number-two portal in the US and part of the three-way battle for market leadership in the so-called "portal...

Read More

Editor's Pick