McMakler, a Berlin-based hybrid real estate startup, has received another €20 million ($21.8 million U.S.) in a financing round. This comes shortly after a third round of layoffs in less than a year.

McMakler will utilize the extra capital to put resources into the further digitization and automation of its operational processes. Through that, McMakler says that clients are offered more transparency and security in the current market for selling and buying real estate.

Even though the company managed to raise €20 million in capital from investors, it had to accept a devaluation, which was halved to around €400 million ($436 million U.S.) according to sources. Baillie Gifford, a Scottish financial backer, is leading the financing round, while previous investors Warburg Pincus, Frog Capital, and IGP Capital are also participating once more. Additionally, McMakler receives a seven-figure investment from co-founder and CEO Felix Jahn.

“The conclusion of this financing round not only confirms the quality of our work, but also shows that we are successfully surviving on the market in times of crisis. The trust placed in us by our portfolio investors – first and foremost Baillie Gifford – is a strong signal in the current market environment,” commented Felix Jahn. “We will continue to invest specifically in digitization and in the automation of our operational processes and thus make the sale of real estate even more efficient for our customers.”

Felix Jahn said previously that the current state of the real estate market was significantly affecting his company. The number of flats sold via McMakler’s platform fell by between 23% and 25% year on year (y-o-y) in the first quarter of 2023, he explained. He went on to note that while the company was able to grow its turnover by almost 20% y-o-y to almost €111 million ($119 million U.S.) in 2022, the company would be significantly below that.

Founded in 2015 in Berlin by Jahn, Hanno Heintzenberg and Lukas Pieczonka, McMakler says it provides property purchase and sales services that combine human expertise with automated real estate appraisal, in addition to offering financing consultancy and investment management services.

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