Opendoor, a US-based online real estate marketplace provider backed by internet and telecommunications conglomerate SoftBank’s Vision Fund, is looking to raise another $200m, TechCrunch reported on Friday.
The company is targeting a $3.7bn valuation in the deal, which was described as a series E2 round. It was valued at more than $2bn as of its last funding, in September 2018, and has raised almost $1.05bn altogether.
Founded in 2014, Opendoor operates a mobile app that functions as a platform for homeowners to sell their properties, bypassing traditional real estate agents.
The company buys the homes, conducts any necessary repair work and allows potential buyers to access properties using the app before buying them directly from Opendoor.
OpenDoor had secured a total of $2bn in debt financing as of September 2018 to purchase homes, but claims to be currently spending nearly $4bn a year on transactions. It has not revealed how it intends to spend the series E2 funds, but has said it plans to move into mortgages and home improvement loans.
Vision Fund provided $400m for OpenDoor in September, adding to a series E round that initially closed at $325m in June 2018, and which was co-led by home builder Lennar, conglomerate Access Industries’ Access Technology Ventures unit and growth equity firm General Atlantic.
The first tranche also featured property manager Invitation Homes, Andreessen Horowitz, Coatue Management, 10100 Fund, Norwest Venture Partners, Lakestar, GGV Capital, New Enterprise Associates (NEA) and Khosla Ventures.
Access Industries led OpenDoor’s $80m series C round in 2015 at a $580m valuation before returning for a $210m series D in 2016 featuring GV, a subsidiary of internet technology conglomerate Alphabet, as well as NEA, Khosla Ventures, Fifth Wall Ventures, Lakestar and GGV.
The company’s earlier funding came from GGV, Khosla Ventures, Thrive Capital, Caffeinated Capital, Sherpa Ventures, Haystack Fund, the Mack Family, SV Angel and various angel investors.
