Homelight, an erstwhile agent-review site that’s grown to include cash offers, mortgage lending and more, has secured $100 million in equity funding and $263 million in debt to finance home purchases. The raise brings total funding to date to approximately $530 million and values the firm at $1.6 billion
The series-D round was led by Zeev Ventures, with participation from Group 11, STCAP, Menlo Ventures, and Lydia Jett of the SoftBank Vision Fund, according to the funding announcement.
Homelight, a Silicon Valley venture launched in 2012, began life as an agent review site, and it still functions as a matchmaking platform for agents, buyers and sellers.
But early last year, it entered the cash-offer business, giving sellers a quick-close alternative to marketing their home on the open market. Unlike IBuyers such as Zillow, Opendoor and Offerpad, Homelight doesn’t buy homes itself. Instead it connects sellers to a network of investors, including some IBuyers, to enable expedited cash buys. Also last year, the firm introduced HomeLight Trade-In, allowing families who are moving house to cash out with HomeLight before shopping for their next home.
Those offerings come on top of home-value estimates as well as home loans, added in July 2019 with Homelight’s acquisition of mortgage company Eave. The firm also offers title and escrow services.
Homelight is growing into yet another one-stop shop offering a wide range of services to people moving house. Homelight doesn’t offer a home-listings portal like Zillow, and neither does it offer in-house agents like Zillow, Opendoor, Redfin and many others. But we can imagine it will eventually offer all these things if it continues on its agglomerating path.
Since the company’s last fundraise in October 2019, HomeLight has experienced sustained growth at approximately 3x year-over-year, with annual revenue expected to triple once more to $300 million this year, the funding announcement states.
With offices in San Francisco, Seattle, Scottdale, Arizona, and New York City, the firm offers its agent recommendation service in all major U.S. cities. The firm states, “Hundreds of thousands of agents have applied to be a part of the HomeLight agent network; we work closely with the top 28,000 of those agents across the country.”
Its newer services are confined to a smaller part of the country. HomeLight’s loans division supports the Cash Offer and Trade-In services, and these are available in California and Texas, and just launched in Colorado last week. The Closing Services division has offices in California, Texas, and most recently Florida. Homelight plans to use the funding to expand the new services as quickly as possible across the U.S.
The firm didn’t disclose headcount, but said it has grown its team by more than 180% year-over-year.