Digital real estate disrupter Opendoor has landed yet another massive cash infusion, raising $300 million in a recent investment round and bringing its total equity capital to $1.3 billion.
Now, the company is valued at $3.8 billion, sources close the matter told TechCrunch.
Investors in this latest round of funding included General Atlantic, Hawk Equity, SoftBank Vision Fund, Access Technology Ventures, Lennar Corporation, Fifth Wall Ventures, SV Angel, Norwest Venture Partners, NEA, GGV Capital, Khosla Ventures and GV, TechCrunch said.
Opendoor secured a similar cash infusion less than six months ago, landing a $400 million investment from Softbank Vision Fund.
The company, which launched in 2014, is one of a number of so-called iBuyers who have set out to change the way Americans buy and sell homes by whittling the process down to a few simple online transactions.
In essence, home sellers can sell their house to Opendoor through an online exchange, and the company in turn will assess the home, decipher an appropriate offer and sell the home to a buyer.
The concept is to eliminate the pain points associated with the home-selling process, and the idea appears to be resonating.
Key to Opendoor’s business strategy is its data modeling, which enables it to locate gaps and opportunities in certain markets and create optimal pricing for the homes it’s selling.
Co-Founder and CEO Eric Wu told TechCrunch that the business is designed to succeed regardless of the market’s health.
“During a slowdown, it becomes increasingly more painful to sell a home, which impacts mobility for homeowners and increases the need for reliable home sales through products like Opendoor,” Wu said. “It is our responsibility to manage that risk and charge the proper fees to account for the volatility.”
Wu told TechCrunch that the recent capital infusion will facilitate its expansion into more markets and fund new product development.