PropTech startup Kodit.io raises $13M to automate house buying and sellingJune 3, 2019
As anyone who has ever tried to buy or sell a home knows, the entire process can be the most stressful of one’s life. Traditional real estate agents rarely make the process any less stressful, leaving the industry ripe for disruption by tech companies which can automate many of the existing processes.
Startups like Offerpad in the US have done just this by becoming an on-demand, tech-enabled direct home buyer and seller, and raising as much as $155M in VC to achieve this. The market in Europe is less well developed, which is why it’s clearly interesting that Kodit.io, a Finnish Proptech company that gives homeowners a “stress-free way to quickly sell their homes for a fair price”, has announced the close of a €12M ($13.4M) venture round to fund expansion in Europe.
Investors include New York-based FJ Labs, Austrian Speedinvest and Spanish All Iron Ventures, as well as Norwegian Adevinta (formerly Schibsted Marketplaces) that owns leading marketplaces in 16 different countries. Kodit.io previously raised €2M in seed capital and is planning to use its new funding to strengthen its expansion to new markets.
Kodit.io is a so-called iBuyer that offers home sellers ‘fair cash offers’ for their properties within 24 hours based on market assessments using machine learning. After purchase, Kodit.io renovates the properties to offer home buyers move-in ready and risk-free homes to buy, they say.
The idea is to disrupt the outdated and time consuming process of selling residential real estate on the retail side, while bringing more transparency and liquidity to housing markets on the B2B side.
Kodit.io launched in Madrid two years ago, and is also operating in Tallinn and six cities in Finland. Later this year, the startup expects to expand to Paris, Barcelona and Warsaw.
Hugo Mardomingo, Principal of All Iron Ventures, commented: “The real estate market is undergoing a strong transformation. Kodit.io brings a transparent and disruptive model to the table to eliminate the friction experienced by home buyers and sellers.”