Reali, a real estate startup that aims to streamline the buying and selling process for consumers, said on Wednesday it had raised $ 250 million in a new round of funding.
The funding is split between $ 75 million in equity, $ 25 million in debt, and $ 150 million in warehouse financing, the latter of which is a kind of loan using a company’s inventory as collateral. In total, that brings Reali’s fundraising since launching around five years ago to over $ 300 million. A company statement added that Reali plans to use the new resources to expand geographically and to flesh out its offerings for consumers.
Reali CEO Tyler Baldwin said in the statement that the new funding reaffirms his company’s commitment to simplifying one of life’s most complex and stressful transactions in a streamlined way.
“After a year of phenomenal growth, the results of our high-tech, high-touch approach resonate with our customers,” continued Baldwin. “As we continue to evolve, we are delighted to have found investors and partners who share our vision of expanding our offering into new markets and continuing our quest to meet the individual needs of our clients. “
Reali offers a variety of products. For sellers, it provides both agents – who work for a salary – and a flat registration fee. The company also offers a product it calls “Reali Trade-In,” which, as the name suggests, allows consumers to sell and buy property in a single “coordinated transaction,” the statement said.
For buyers, Reali offers a cash offer program that allows future owners to eliminate the unexpected and be more competitive. As with other cash offer programs in the industry, Reali’s offering involves the company buying the house and then reselling it to the consumer.
Reali’s statement on its new funding notes that in 2020 the company experienced “more than 7-fold growth over a year, 2-fold customer growth over a year, and increased average revenue per user ( ARPU) by 3 times “. The company’s products are currently available in most of California, although Reali plans to eventually expand into the United States – a project that will be boosted by the new funding.
Several venture capital firms participated in the new funding round, including Akkadian Ventures, Signia Ventures and Zeev Ventures. In a statement, Zeev’s founding partner Oren Zeev praised Reali for “its relentless focus on the consumer and its commitment to transforming the complicated process of buying or selling a home.”
“They streamlined the process,” Zeev continued, “and designed innovative financial solutions that meet the unique needs of today’s consumers.”
Email Jim Dalrymple II