Real estate startup Orchard announced Thursday it closed on a $69 million Series C round led by Revolution Growth, bringing its total funding raised to $138 million.
Founded in 2017, Orchard aims to revolutionize the industry by allowing users to find, buy and sell homes all on one site, avoiding the traditionally complex legacy brokerage firms.
As long as they agree to sell their current home through Orchard, users can purchase their new home with Orchard’s cash and are not responsible for the new mortgage until the old home is sold. Customers work directly with an Orchard agent who helps them find a new home and sell their old one, handing everything from cleaning to listing to showing. The goal is to give home sellers and buyers more autonomy, allowing them to make more money on their old house and spend less looking for a new one.
“Our vision is to bring real estate into the modern age by allowing customers to manage their entire experience through one simple digital platform,” CEO and co-founder Court Cunningham said in a statement. “In the same way Amazon has fundamentally changed retail, and Carvana has innovated the car buying experience, Orchard is putting the customer first and modernizing the home buying and selling transaction.”
This raise marks a significant achievement in what has been a particularly busy year for Orchard. In January the company raised $39 million in equity funding and, six months later, launched its Orchard Home Loans product that helps users pre-qualify for mortgages. Orchard has also expanded its services into Denver and Atlanta and plans to move into even more markets next year.
“Our success comes down to a relentless focus on the customer,” Phil DeGisi, co-founder and chief product and marketing officer, told Built In via email. “Sixty percent of homebuyers need to sell a home in order to buy their next one. They have to either sell first and move twice, or buy as a contingent buyer and risk not getting their dream home.
“Our Move First service allows customers to purchase their next home and move in before they’ve sold their current one, and even offers customers the ability to buy their next home with Orchard’s cash,” DeGisi continued. “This, combined with our innovative offerings, such as the option to use our integrated all-digital closing tools, is why we’re continuing to grow and succeed.”
DeGisi says this model is also particularly valuable in the midst of the COVID-19 pandemic. It allows homeowners to buy before they sell, which is useful in this competitive housing market. Plus, its features make it easier to find, sell and buy homes online, avoiding potentially harmful in-person interactions.
Going forward, Orchard plans to use this fresh funding to expand its product offerings and hire in its offices in NYC, Austin, Denver and Atlanta. In fact, DeGisi says the company plans to triple its headcount by this time next year.