- Immo Capital, a London-based real estate tech startup, has raised $75m in Series B.
- Immo buys single-family homes, renovates them, then offers them for rental on behalf of investors.
- The company wants to use the funding to expand its European presence and open operations in the United States.
Immo, a London-based property investment startup, raised $75m in Series B funding.
The company, founded in 2017, says the increase is the largest in the proptech sector in Europe so far.
Immo buys properties on behalf of institutional investors, renovates them, then offers the renovated accommodation for rent. The idea is to expand investors’ portfolios by buying more desirable properties. The argument for home sellers is that finding a buyer is easy. And the pitch for tenants is higher quality properties and flexible rental contracts. The startup focuses on single-family rental properties.
“The wider ‘proptech’ space is exploding,” said Hans-Christian Zappel, CEO and co-founder of Immo. “There is a movement towards proptech now because it is an area that has been slow to innovate.
“It’s a market that has a low elasticity of demand, tenants have a hard time educating landlords because they have to rent, and landlords are making too much money, so there’s not as much change. motivated by pain.”
Immo says its proposal is based on a technology- and data-driven approach to housing acquisition. Using a range of around 300 metrics, including humidity, decibel and lumen levels, comparable transactions and location data from public and private datasets, Immo builds a model of transaction and rental costs for individual properties to help institutions deliver what Zappel describes as “a more professional rental product.”
Immo said it had quadrupled in the past 12 months and now manages around $2.5 billion in institutional commitments in its core markets of Germany and Spain. The startup aims to bring the UK market online this year and will also make inroads into the more developed single-family rental investment market in the US later in 2022, Zappel said.
“The COVID-19 pandemic is driving things and has triggered a shift in terms of how people think about their housing needs,” Zappel said. “Renting makes sense for people – if you ignore the financial implications it gives you flexibility – but it would make more sense financially for generation rent if the development of an apartment benefits me.”
New funding came from Oak HC/FT, a New York-based private equity/growth fund, alongside Moore Specialty Credit and existing investors FinTech Collective and Talis Capital. The company has not commented on its valuation.
IMMO currently has 146 employees in its various markets and will hire more technical talent globally with its new capital.
Check out IMMO’s pitch deck below: