IMMO has closed a $75m funding round, the largest series B equity raise in European proptech history.
The tech-driven residential investment platform will use the capital to accelerate its expansion across Europe and purchase 10,000 homes, backed by $2.5bn in commitments from leading institutional investors.
“Now is the time to unlock and professionalise the European residential category,” said Hans-Christian Zappel, CEO and co-founder of IMMO. “Residents deserve a better, more convenient, affordable and environmentally sensitive rental product. And responsibly minded institutions need the scalable, low-risk investment exposure that single unit residential assets have to offer.”
The round was led by US-based fund Oak HC/FT, which specialises in venture and growth equity fund investing in healthcare and fintech, alongside Moore Speciality Credit and existing investors FinTech Collective and Talis Capital.
The platform aims to “revolutionise how people can sell, rent and invest in single-family rental housing” by using data-led tech to create investment portfolios from existing single-family rental assets, at scale and at speed.
Oak HC/FT partner Dan Petrozzo explained why his firm had led the investment round. “IMMO is a growth stage company that has become synonymous with SFR investments in Europe,” he said, noting that this was “one of the most in-demand, supply-deficient asset classes” in the region.
IMMO has seen 1,200% growth in the last 6 months, and now wants to invest into SFR across more European markets. It plans to accelerate the company’s geographical expansion from its offices in London, Hamburg, Cologne, Berlin, Madrid, and Delhi. The funding will also allow IMMO to go on a hiring spree to find the best talent in each of its locations.
“IMMO is leading the unlocking of this new asset class, and is setting the standard for data-driven portfolio aggregation in Europe,” Petrozzo added. “We’re always seeking to partner with disruptive companies that fill white spaces and positively impact the communities that they serve, and IMMO is a perfect fit. We’re excited to support the company as it expands into new markets and builds an iconic brand in residential living.”
Zappel said: “We’re incredibly excited to partner with Oak HC/FT. Oak’s experience in guiding companies that open new asset classes paired with their willingness to dive deep into our business to support on an operational level makes clear why they are one of the leading fintech growth investors in the world. We have an incredible set of investors behind us and are grateful for their support.”
The firm’s technology analyses over €6bn of property each month to identify investment opportunities. The IMMO team then physically inspects selected homes collecting over 300 data-points using the company’s proprietary inspection app in order to make an offer. Post purchase, IMMO ‘upcycles’ the propertie, which are then offered to residents via a “living-as-a-service” rental platform. IMMO says it can do all this at affordable prices and 52% less carbon footprint than a full redevelopment.
Zappel added: “We are delivering the future of residential investing through our platform, as well as what the future of living is going to be. Redefining what residents can expect from their homes is a great responsibility and at the same time an amazing opportunity.”
IMMO has been named a “Tech Pioneer” by the World Economic Forum and “real estate asset manager of the future” by Goldman Sachs. The company was cofounded in 2017 by Zappel and CIO Samantha Kempe, formerly of Blackstone and PwC.
