Real-estate startup Immo scoops up single-family homes from sellers then turns them into rental investments. Check out the 26-slide pitch deck it used to raise $75 million.
This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now.
- Immo Capital, a property tech startup based in London, has raised a $75 million Series B.
- Immo buys up single-family homes, renovates them, then offers them for rent on behalf of investors.
- The company wants to use the funding to expand its European presence and open US operations.
Immo, a London-based real-estate investing startup, has raised $75 million in Series B funding.
The company, founded in 2017, claims that the raise is the largest in the “proptech” sector in Europe at this stage.
Immo buys up properties on behalf of institutional investors, renovates them, then offers the upgraded homes up for rental. The idea is to broaden investors’ portfolios by buying up more desirable properties. The pitch to home sellers is that it’s easy to find a buyer. And the pitch to renters is better-quality properties and flexible tenancy agreements. The startup focuses on single-family rental properties.
“The wider “proptech” space is exploding,” said Hans-Christian Zappel, CEO and cofounder of Immo. “There is a move towards proptech now as it’s been an area that’s been slow to innovate.
“It’s a market that has a low elasticity of demand, renters struggle to educate landlords because they have to rent, and landlords make too much money so there is not as much pain-driven change.”
Immo claims its proposition is built out of a tech and data-driven approach to housing acquisition. Using a range of 300 or so indicators including humidity, decibel, and lumen levels, comparable transactions, and location data from public and private datasets, Immo builds out a model of transaction and rental costs for individual properties to help institutions provide what Zappel describes as “a more professional rental product.”
Immo said it has grown four-fold in the past 12 months and now manages around $2.5 billion in commitments from institutions across its core markets of Germany and Spain. The startup wants to bring the UK market online this year and will also makes strides 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 sparked a change in terms of people thinking 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 financial sense for generation rent if the development of a flat is going to benefit me.”
Fresh funding came from Oak HC/FT, a New York-based private equity/growth fund, alongside Moore Speciality Credit and existing investors FinTech Collective and Talis Capital. The company did not comment on its valuation.
IMMO currently has 146 employees across its various markets and will hire more technical talent globally with its new capital.
Check out IMMO’s pitch deck below: