Opendoor is an online marketplace based out of San Francisco where users can buy and sell homes. Recently, the marketplace has raised an impressive $325 million which the company plans to use for expanding into new markets as it aims to challenge Zillow and Redfin.
Opendoor has now raised $645 million in equity and $1.5 billion in debt financing to buy and sell homes online. Leading the round were homebuilding company Lennar, General Atlantic and Access Technology Ventures. New investors Andreessen Horowitz, Coatue Management, 10100 Fund and Invitation Homes also participated, as well as existing investors Norwest Venture Partners, Lakestar, GGV Capital, NEA and Khosla Ventures.
The company will use the massive cash infusion to expand from 10 markets to 50 by the end of 2020 and enhance its technology platform. Opendoor needs to raise a lot of cash because it’s not cheap to buy homes en masse. Today Opendoor purchases more than $2.5 billion in homes on an annual run rate.
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