Home flipper Opendoor raises $325M

House flipping company Opendoor has raised a $325 million Series E and plans to expand to 50 markets by 2020, the company said Wednesday.

The latest round — far more than the $200 million it was rumored to be raising — was co-led by General Atlantic, Access Technology Ventures, and South Florida-based builder Lennar Corporation. It brings Opendoor’s total funding to $645 million in equity and $1.5 billion in debt. Andreessen Horowitz, Coatue Management, 10100 Fund, and Invitation Homes also participated in the most recent round.

Earlier this year, the company was looking to raise $200 million from investors at a $2 billion valuation.

“We’ve seen incredible growth in our markets as homeowners embrace the simplicity and certainty of buying and selling through Opendoor,” said CEO Eric Wu in a statement. Prior to the Series E, Opendoor’s most recent round was $210 million in November 2016. Lennar committed $100 million in debt financing in late 2017.

Opendoor said Lennar’s president and chief operating officer, Jon Jaffe, will join the startup’s board. For the past few months, the companies have partnered on a “trade up” program in which homeowners sell their homes to Opendoor and purchase a new one from Lennar. “Our increased investment in this round is a reflection of our enthusiasm for the opportunities that lie ahead,” Jaffe said.

Founded in 2014, San Francisco-based Opendoor claims to purchase $2.5 billion in homes each year. It currently operates in 10 markets, including Atlanta, Charlotte, Dallas-Fort Worth, Las Vegas, Orlando, Nashville, Phoenix, Raleigh-Durham, San Antonio and Tampa.

Nationwide, Opendoor is facing competition from new “iBuyers,” or companies that let investors buy and sell homes online. In April, Zillow said it would start buying and selling homes.  — [BusinessWire] — E.B. Solomont