easyProperty, the online estate agency from easyGroup, has closed GBP16 million in its third financing round for operational development and an additional GBP9 million funding line available to support the company’s plans for future acquisitions.
The lead investor, Toscafund, a London based hedge-fund with over 20 years of experience backing fast-growth SMEs in sectors typically undergoing structural change, has put forward GBP14 million in investment, with the additional GBP2 million being co-led by existing and new investors, many investing for the third time.
Martin Hughes, from Toscafund, which has previously backed successful e-commerce industry disruptors such as online insurance firm Esure, said: “Being the first to discover Direct Line Insurance in the 1980s, a motor insurance company that used the telephone, a then disruptive approach, to grow to become the largest UK motor insurer, I have successfully continued the search for disruptive businesses in the 30 years since.
"easyProperty offers the brand, technology and management to enable a considerable saving to property transaction costs compared to the incumbents. The online process is an impressive disruptive approach to ease a much needed overcharged road block to the population mobility. We look forward, with confidence, to easyProperty leading the online development of property transactions and services in the UK and Europe."
Exceeding the initial GBP5 million target, the new injection of GBP16 million in capital – and the potential for GBP9 million more – brings the total investment since its inception to GBP39.25 million, and has brought easyProperty’s current public valuation to in excess of GBP100 million.
The first two rounds of funding were equally successful and oversubscribed. In Feb 2014, GBP4.5 million was raised to fund initial development; this was then followed by a second round in September 2014, when a total of GBP9.75million was raised through a mix of traditional private finance and venture capitalist funds, including GBP1.4million via crowdfunding.
CEO of easyProperty, Rob Ellice (pictured), says: “The fact that each round of financing has been so heavily oversubscribed is a strong reflection of the strength of our business model.
“This new, very substantial investment from Toscafund is a real opportunity to keep expanding both in the sales and lettings markets in the UK and in pan-European property services, and a sure indication of how we plan to take the market share from traditional high street agencies.
“The appetite of such a large institutional investor, and with ongoing talks of investment opportunities internationally, is a significant step forward for easyProperty; which is the most widely recognised consumer brand in what is a very fragmented estate agency market.”
