Properly, a Toronto-based proptech startup, has closed a $22 million Series A financing round, consisting of $12 million in equity and an initial $10 million debt facility.
“We’re changing the traditional real estate process by allowing users to have complete control over selling a home.”
The Series A was led by Prudence Holdings, a founding investor in Compass, and FJ Labs, (which has invested in Airbnb, Roofstock, and Clearbanc), with participation from Golden Ventures, and Kevin Ryan of AlleyCorp, among others. Properly said this investment will accelerate the startup’s expansion within Calgary and to other Canadian cities, as well as be used to further develop its technology, and expand its team.
“Across all industries, people are generally looking for faster, cheaper, and more convenient services,” Properly CEO Anshul Ruparell told BetaKit. “Properly was created because we believe that the real estate process should be reflective of that. We’re changing the traditional real estate process by allowing users to have complete control over selling a home.”
Founded in 2018, Properly aims to quash issues typically associated with a home sale, like untimely house showings and expensive repairs. The platform uses machine learning to help homeowners determine what their home would sell for on the open market, with the option to sell directly to Properly and close quickly. The company offers its users a price match guarantee, meaning if the home sells for more than Properly’s offer, 50 percent of the difference is refunded to the customer.
After launching in Calgary last summer, Properly is looking to expand into new markets, beginning with Edmonton, followed by more cities that are expected to be announced at a later date. Ruparell said the decision to opt for Calgary as its first market stemmed from his own experience living in Calgary. He said he saw firsthand how difficult it can be for some homeowners in the Alberta city.
“[We] are confident in Properly’s potential to transform the real estate market in Canada.”
“The average home sale in Calgary takes about 60 days on market,” he told BetaKit. “And that doesn’t include the time, cost, and inconvenience of keeping the house clean [and] managing showings, or the time it takes to close the ultimate buyer.”
Ruparell is a former private equity and venture capital investor, and has been involved in several early-stage ventures in both Canada and the US. Sheldon McCormick, COO of Properly, launched UberX in Toronto, and helped Uber expand across Canada. CTO Craig Dunk was one of the first 50 employees at BlackBerry, where he co-created BBM and Relay before moving on to executive roles at D2L and VarageSale.
The startup’s team currently sits at 20 people, and it’s looking to add employees across all departments. Ruparell said Properly will continue to invest in its proprietary technology, which uses machine learning to determine the best price for sellers by looking at hundreds of factors, from historical sales of homes to the proximity of local schools and hospitals, as well as the amount of traffic on the street.
“There’s been a lack of innovation around real estate in Canada, but that’s changing with Properly,” said Gavin Myers, general partner of Prudence Holdings. “Investing in Properly was a clear choice because they’re providing the services homeowners want, convenience and transparency while eliminating the pain points of selling a home. With an outstanding team, attractive business model, and strong traction, we see direct parallels to the early days of Compass and are confident in Properly’s potential to transform the real estate market in Canada.”
Image courtesy Properly