OfferPad has secured its third round of investment funding, bringing its total raised equity and debt capital to nearly $1 billion U.S. The series C financing round was led by a new, undisclosed investor and follows debt capital raised from Citi at the end of last year as well as a $150 million investment round last May.
As one of the main competitors in the burgeoning iBuying business, Arizona-based OfferPad gives home sellers a quick way to unload their homes by promising firm cash offers with just 24 hours notice.
Founded in 2015, the company currently serves 12 cities across the American South. The new investments will help OfferPad achieve a goal of doubling the number of markets this year, according to a company statement.
As a privately-held company, OfferPad doesn’t have to publicize its finances. However, in a media release in May 2018, it forecast buying and selling $1.5 billion worth of homes in the coming year “based on (then) current monthly volume.” That would amount of roughly 5,000 homes in the $300,000 price range.
OfferPad’s latest funding round comes in the wake of Zillow’s announcement in February that it would massively scale up its competing iBuyer service. The company boasted that in three to five years, its Zillow Offers division would be purchasing 5,000 homes per month while bringing in annual revenues of $20 billion.