The U.S. iBuyer Offerpad has announced that it has entered into subscription agreements with private investors to raise $90 million.
Among those being asked to stump up cash are company CEO Brian Bair and existing stockholders Roberto Sella and First American Financial Corporation.
Along with competitor Opendoor, Arizona-based Offerpad is the last of the American iBuyers that operate at scale following the exit from the market of Zillow in November 2021 and more recently of brokerage firm Redfin.
Although Offerpad has been highlighted by the likes of analyst Mike DelPrete as having a more profitable model than Opendoor, the company has still suffered from the recent downturn in the U.S. housing market. Offerpad's net losses amounted to $80 million in Q3 of 2022.
The company lowered the number of houses it bought in Q3 by a third compared to the same period in 2021 but was still losing $4,500 on every property transacted over the quarter. With no sign of any market rebound around the corner, Offerpad has seen fit to tap investors for funds which it said will be used "for general corporate purposes".
Much like its rival Opendoor, Offerpad has seen a small uptick in its share price in 2023. The company was in danger of being delisted after receiving a notice from the New York Stock Exchange in November for having seen its share price drop below $1 for more than 30 consecutive days.
Credit: Google Finance