Opendoor, an online marketplace that buys homes direct from homeowners, announced plans to expand beyond the two markets where it’s currently available thanks to a round of funding that reportedly values the company above $1 billion.
Opendoor, which launched in 2014, currently operates in Phoenix and Dallas-Fort Worth. Opendoor operates by buying homes from sellers, then turning around and selling the homes on its own marketplace
According to details provided by the company, it is currently handling $60 million in home volume each month and served more 4,000 homeowners since it launched. Now, the company wants to expand to other markets, and it will expand using a $210 million Series D round of funding.
According to a report from Bloomberg, the funding places a $1 billion valuation on the company.
Opendoor boasts that it “redefines the home selling and buying experience” by “transforming a painful, lengthy process into a frictionless experience for customers.”
Here’s how it works: A homeowner seeking to sell their home can go to Opendoor, enter details about their home, and get a near-instant price quote for the home.
If the seller accepts, Opendoor then allows the seller to close on the sale when they’re ready, rather than on the timeline of another buyer.
“For sellers, Opendoor offers a simple, near-instant online sale, allowing homeowners to close on their timeline and skip repairs, open houses and months of uncertainty,” the company says.
The company said that it will use the funding to expand market share in flagship markets and to expand its service to 10 cities in 2017.
Jeff Crowe at Norwest Venture Partners led the round of funding, with participation from NEA and other existing investors.
Crowe will take a seat on Opendoor’s board as part of the round of funding.
“Norwest is excited to partner with Eric Wu (Opendoor CEO) and the Opendoor team through the company’s next stage of growth and its expansion into new markets,” Crowe said. “The company is offering a truly novel product for home buyers and sellers and its vision for the future of real estate is incredibly compelling.”
Other investors who participated in the funding included Khosla Ventures, GGV Capital, Access Industries, Fifth Wall, Lakestar, SVB Capital, Caffeinated Capital, and Felicis Ventures.
“We are fortunate to have the support from investors that believe in our long-term vision and our ability to build an iconic, industry-defining company,” Wu said. “As we look to scale Opendoor to dozens of cities, we are focused on building a world-class customer experience centered around transparency and trust.”