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Italy’s Opendoor-style prop tech, Casavo, raises $ 410 million to expand its instant buyer platform across Europe-TechCrunch

Italy’s Opendoor-style prop tech, Casavo, raises $ 410 million to expand its instant buyer platform across Europe-TechCrunch

Admin | Post Tuesday, 19 July 2022 - 04:19 PM | 73

Opendoor has opened the door to the idea of ​​applying technology to the concept of flipping a house, so to speak, to expand opportunities and make it fairly efficient.And the stock price Hammered At this point, the tech stocks as a whole have fallen sharply, and it’s a strong enough concept, inspiring many others to follow in its footsteps.In the latest development, Opendoor-style startups CasaboHas announced that it has raised € 400 million (currently about $ 410 million) from Italy.

With a platform that currently lists nearly 4,000 homes in Italy, Spain and Portugal and has sold around 3,200 homes so far (since it was founded at the end of 2018), this money will be used throughout Europe. We plan to expand our business. According to CEO and founder Giorgio Tinacci, the total real estate is € 1 billion.

The funds will be provided in the form of € 100 million in Series D and € 300 million in debt, with the purchase and repair of real estate. Mr. Casabo said the Series D is Europe’s largest “proptech” equity investment to date, and the debt round will increase startups’ borrowing capacity to € 500 million.

Tinacci said in an interview with TechCrunch that the company hasn’t disclosed the rating except to note that it’s more than double the size of the previous round. The context was $ 194 million in February 2021. PitchBook According to the data, Casavo’s valuation could exceed $ 400 million.

Exor-A traditional holding company managed by the Agnelli family, with investments ranging from publishing (eg economists) to car brands (eg Ferrari and Stellantis) and sports clubs (soccer giant Juventus). I am doing. Lead the equity round with the participation of many other participants who provide some strategic resources and funding. Casavo’s new investors include Neva SGR (Intesa Sanpaolo Group), Endeavor Catalyst, Hambro Perks, Fuse Ventures Partners and angel investor Sébastiende Lafond (founder of Meilleurs Agents). In addition to them, former supporters Greenoaks, Project A Ventures, 360 Capital, P101 SGR, Picus Capital and Bonsai Partners also participated.

Intesa Sanpaolo (IMI Corporate & Investment Banking Division), Goldman Sachs, DE Shaw & Co provided the debt.

The rise of Casabo stems from three main areas: the pandemic, the current European real estate market gap, and Casabo’s specific approach to tackling it.

Similar to the pandemic in the United States, the blockade has spurred a new focus on family life and where people live, to create more space and diversity given the increased time spent there. Connected to people looking for a place (or remodeling an existing place). “We were out of stock, but there was very strong demand,” said Tinatch. He added that platforms like Casabo have found a lot of traction to facilitate both buying and selling in pandemic climates.

Especially the market condition was lent to this. Most privately owned homes are in the hands of families who already live there, and they usually do not work with brokers. These factors effectively slow down the buying and selling process. This makes it a “chain” where people usually have to sell their place to move to another place, creating an instant buyer platform like Casavo to speed this up. Immediately upgrade the property to release capital for the seller, undertake the repair of the property and sell it for the profits that Casabo realizes for himself-a more attractive and more used option is.

It worked very well for startups. Pre-Covid, Tinacci, said Italy typically undergoes 500,000 home transactions annually. Last year it swelled to over 700,000. It focuses on metropolitan properties and by default is an apartment rather than a residence (which is much more common in metropolitan areas, especially in Europe).

“Sure, companies like Brazil’s Opendoor and Loft are our source of inspiration,” Tinacci admitted, adding that some companies casually call Casavo “European Opendoor.” But he added that this is really just the first part of what Casabo does.

“The so-called” instant buyer “approach was our core and the first step, but we’re not,” he said, and why he feels that Casabo has greater potential. This is because the purpose is to exceed that. Immediate purchases helped the company consolidate supplies that are “very important in such a very supply-driven market,” he continued. It now also includes some properties on platforms that you don’t own directly.

The new service, launched a year ago, now accounts for more than 25% of transaction volume. “We expect this ratio to be 50% in a year,” he added. So I started as Opendoor, but eventually I want to be Zillow as well.

“Casavo is becoming a clear European PropTech leader and is excited to continue his journey with Giorgio. Despite the turbulent market conditions, the team has been working very well so far and for the future. I’m optimistic, “said Noam Ohana, MD of Exor Seeds, in a statement.