Having secured funding earlier this year, Calgary-based Virtuo is now poised to expand its homeowner concierge platform deeper into the North American market.
This week, Virtuo unveiled a $3.5-million CAD ($2.5 million USD) seed round led by Telus Ventures and ATB Private Equity. Other participants in the seed financing, which the startup said closed in March, included returning investors Maggnum Ventures, GroundBreak Ventures, Broad Street Bulls, and InterGen, as well as new investor Export Development Canada.
“Because we’re capital efficient, we can make it go a long way to continue improving how we provide our first-class customer experience.”Casey Kachur
The new funding is being used to expand Virtuo’s offering across Canada and the United States. Virtuo co-founder and CEO Casey Kachur told BetaKit that the company’s platform is already available across major Canadian markets, as well as in California, Texas, and Arizona.
“The expansion will be deepening our presence in the markets we already operate in, through the acquisition of new account verticals, such as realty, mortgage lending and home insurance,” Kachur added.
Kachur said at the closing of the round in March, Virtuo was at break-even, and the startup expects to achieve positive cash flow in the first half of 2024.
The process of moving is often cited as a significant stressor among homebuyers and homeowners. One study highlighted by Virtuo in a statement noted that changes in residence can increase the stress level of owner-occupiers the most, particularly those moving between owned properties.
Founded in 2017, Virtuo offers an app that aims to streamline the processes involved with purchasing and moving into a new home. While the platform’s end users are homeowners, Virtuo’s offering is provided through its partners, which include homebuilders, realtors, lenders, and other firms in the property and real estate market. Its current partners include Brookfield Residential, Excel Homes, and Mattamy Homes.
In 2021, Virtuo was one of the 12 startups named to Google for Startups’ Canadian AI accelerator. The startup claims the platform has engaged over 16,000 homebuyers to date.
Virtuo’s previous raises include a $2-million convertible note round led by ATB Private Equity, which also included investments from Groundbreak, Maggnum, InterGen, and Broad Street Bulls. Kachur said that round converted to equity in the startup’s latest seed round. Combined with $1 million in previous founder funding, Virtuo has raised $7 million CAD to date.
The announcement of Virtuo’s fundraise rounds off a busy year for Canada’s proptech industry. Some of the most recent developments in the sector have included Pine’s acquisition of Toronto-based Properly in October, Local Logic’s $17.5-million Series B funding round, and Promise Robotics’ $20.8-million Series A round. Just last week, fractional real estate investment platform Willow.ca was acquired by Montreal-based Guiker for an undisclosed amount.
Kachur said Virtuo’s March seed raise will also allow the startup to deliver better experiences to homeowners. “Because we’re capital efficient, we can make it go a long way to continue improving how we provide our first-class customer experience and empower homeowners through the moving process,” Kachur added.
Feature image courtesy of Virtuo.