Immo Investment Technologies, a real estate fintech company that buys properties on behalf of buy-to-let investors has just closed an €11-million Series A funding. The round was backed by HV Holtzbrinck Ventures and Talis Capital, alongside Mato Peric, Tom Stafford and Rahul Mehta of DST Global, plus a few other firms.
Other than that round, TechCrunch learnt that the fintech company also raised €60 million in real estate “buyer capital”.
Immo plans to use the additional funds to expand through the acquisition of prime properties from individuals looking for quick disposals. Upon acquiring such properties, the company will renovate and rent them out as fully-managed packages, guaranteeing a definite return to investors.
Already, the firm is said to have refurbished more than 10,000 apartments in Hamburg, claiming its technology has the ability to predict a property’s selling price, the current and future rental rates.
“Immo buys residential properties directly from consumers on behalf of professional investors, thereby helping consumers sell their home in a fast, reliable, transparent and convenient way and providing investors with desired residential asset exposure at scale,” Hans-Christian Zappel, the startup’s co-founder and CEO explained, adding “Immo tenants enjoy a well invested, fully furnished long-term rental product and a highly standardized and professionally managed lettings experience”.
Other than serving tenants and investors, the company also targets homeowners who are looking to dispose of their assets without agency fees and with minimal hassle.
“With Immo, consumers go through one viewing, receive an offer within 24 hours and then sell to us without any agency fees and free of worries about financing risks or changing minds,” Zappel said.
The company enjoys fast and confidential transactions due to its technology-driven model that makes it possible for them to understand their markets and assets. “We replace instinct and gut-based valuations, with data; we call this the ‘Immo Intelligence’,” the real estate enthusiast added.
The same sentiments were echoed by Immo’s London rival Nested.
“Using our inspection technology, we collect a proprietary set of 281 data points about every property,” continues Zappel. “Everything from ceiling height, decibel noise levels, wall dampness, lumen levels to water pressure gets measured. The resulting asset information is then combined with a hyperlocal market assessment which is based on two automated valuation models that use historical transaction and lettings data as well as environmental data such as traffic flow, crime statistics, average school/restaurant/cafe ratings, average Airbnb ratings in the area, social media activity, distance to supermarkets/places of worship, etc. to come up with the price we are able to offer to the seller”.