202216 Jun

HomeLight Raises $60M In Series D Extension, Buys Fintech Accept

Summary

It has now raised $645 million in equity financing.HomeLight said it used stock to acquire Denver-based Accept, a self-described iLender that facilitates cash offers for mortgage-ready buyers, but it did not disclose an equivalent dollar value. It now claims to be the largest agent-focused cash offer program in the country, having completed a combined $3 billion in referred transactions in the first quarter.The acquisition HomeLights third M&A deal in three years and new funding comes at a tumultuous time for technology startups, which have narrowed their focus and cut costs amid macroeconomic turmoil and a more stringent fundraising environment.Venture capital has continued to flow into proptech, but its pace has moderated, and startup valuations have come down as newly cautious investors have demanded more favorable terms, according to venture capitalists in the space.Flat is the new up in this market, said HomeLight founder and CEO Drew Uher.Recent belt-tightening has been particularly hard on later-stage startups, which during the pandemic-era investment boom raised piles of cash at ever-higher valuations in a frenzied pursuit of growth. Lately many have resorted to layoffs, including most recently at the digital mortgage lenders Tomo and Better.com, and the brokerage Side.Founded in 2012 with investments from Google Ventures and Group 11, HomeLight says its cash offer programs transaction volume grew six-fold over the past year (Uher declined to disclose revenue or other performance metrics.) It offers the program in Arizona, California, Colorado, Florida and Texas, and will expand in the next few months into Accepts other domains, which include Minnesota and the Portland and Seattle markets.There will be no near-term layoffs associated with the acquisition, according to Uher. But given the shift in investor sentiment, the days of rapid growth for startups like HomeLight are clearly over.We have reworked our hiring plan to be much more conservative through the end of the year, he said.HomeLight acquired Disclosures.io, a provider of listing management tools, in 2020.

Source: Therealdeal

Funding

$60M
Amount
Jun 16 2022
Date
-
Investor
HomeLight
Company

Classifications

Companies