This property startup buys homes directly from sellers in as little as a week. Check out the 19-page pitch deck it used to raise $65 million.
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- Property startup Tiko has raised $65 million in debt and equity funding.
- Founded in 2017, the Spanish startup buys properties directly from sellers before then re-selling at a later date.
- We got hold of Tiko’s fundraising pitch deck.
Spanish home-buying startup Tiko has raised $65 million in debt and equity funding to expand its business internationally.
Founded in 2017, Tiko aims to speed up the sales process for property sellers from several months to as little as a week. The startup makes offers to buy properties at a slight discount on the sales price, effectively meaning the seller can speed up the transaction for a slight financial hit.
Tiko then either refurnishes or otherwise improves the property and puts it back on the market. The process can reduce paperwork for the seller, as well as negate agents’ fees.
“This is an inefficient market,” Tiko CEO Sina Afra told Insider. “COVID-19 has changed the way that people look at properties because they want a garden, to be more isolated, so property sales are not going down. We are able to empower sellers with a tech-led solution.”
Afra, a serial entrepreneur best known for selling his fashion e-commerce business Markafoni to Naspers for $200 million, says that Tiko’s secret sauce is being able to value a property without seeing it. “Tech is the reason we are able to grow because we can collect 3 million data points in the Spanish market everyday and apply machine learning algorithms to price efficiently and quickly,” he added. Tiko evaluates the local market, location, and size of property, amongst other factors, to determine a price.
Funding took place over virtual meetings and is led by Btov and Rocket Internet alongside existing angel investors Joel Ayala from Class 5 Ventures and former Voi and Lime executive Noa Khamallah.
Afra added that being a Spanish company can be a hard sell to venture capital investors but that the company will soon expand into Portugal before embarking into other European markets.
The fresh capital will go towards increasing the company’s headcount from around 75 employees distributed between Afra’s native Turkey and Madrid.
“The continental European market is massive but slow. Each geography has billions of revenue every year so even hitting 1% of that is massive,” Afra said.