British hybrid real estate portal Yopa had a loss of £30.3 million ($38.3 million U.S.) in 2018, a significant increase on a loss of £18.3 million in 2017.
Total revenue increased by around 60 percent from £4.3 million to £6.9 million but much higher overheads, £33 million from £20.3 million in 2017 contributed to the increased loss.
Yopa said that, despite the loss, it expects to become profitable in the second half of this year and in 2020 because of the decisions it made in 2018, which it called a “year of investment and strategic change.” At the same time, the company said, there “remains sufficient opportunity for the business to grow and capture market share.”
Investments and the launch of “no sale, no fee,” which includes deferred revenue, contributed to the loss. Staff numbers continued to increase in 2018 to 200 employees, from 97 in 2017.
The company received £75 million ($95 million U.S.) in investments from backers including DMG Ventures, the investment arm of the Daily Mail & General Trust, which invested £20 million in Aug. 2018, Savills and LSL Property Services. The latter cut its valuation of its 14.7 percent share in Yopa by 61 percent from £20 million to £7.8 million for 2018.
In its 2017 results, Yopa said it “expects to continue to depend upon its shareholders and investors for financing at some point in the next 12 months, depending on market conditions and trading results.”