Funding and Investment Roundup: FangDD, McMakler

This week's roundup features significant liquidity in Asia and Europe. We'll start with FangDD in China...

FangDD to issue shares

FangDD is set to issue up to $2.5 million of shares to "certain investors" this month, with 1.6 million Class A ordinary shares being offered at a price of $1.55 per share.

The shares will be offered on a 'best efforts' basis—meaning FangDD wants to sell as many of these shares as possible—by MM Global Securities, which has been brought in to distribute the shares to investors.

FangDD's decision is likely driven by a need to release liquidity for the business after sluggish H1 results released recently, difficult economic conditions, and the firm's strategic decision to register patents worth $35 million earlier this year.

McMakler raises at least €10 million in funding

The Berlin-based hybrid brokerage and real estate agency McMakler has raised a "double-digit million" funding round led by existing investors Baillie Gifford and Israel Growth Partners.

McMakler offers a wide-ranging service for real estate buyers and sellers in Germany, including a network of 350 brokers scattered nationwide, digital sales processes, over 500 banking partners and financing support.

The company says it will use the funds to increase support capabilities for sellers and buyers, expand its brokerage network, and invest in improving its digital processes.

Benedikt Manigold, Managing Director at McMakler, said:

"This financing round highlights our investors' strong belief in McMakler’s potential and our shared vision to become the leading brokerage in Germany’s real estate market.

"We have proven that McMakler has a resilient business model and a future-proof strategy that enables us to deliver in the market, even in times of crisis. With the new capital, we are ideally positioned for further growth."

McMakler reached a valuation of €800 million ($878 million) in 2021 but saw that valuation slashed in half amid difficulties that saw the company enact no fewer than four rounds of layoffs by the end of 2023, including major management reshuffles that saw departures for the company's CEO Felix Jahn as well as its COO, CRO and Chief Legal Officer.