Ribbon raises $330M to aid all-cash buyers

Funding includes $30M in equity, $300M in debt

Oct.October 29, 2019 11:00 AM
Ribbon CEO Shaival Shah (Credit: iStock, Pixabay)

Ribbon CEO Shaival Shah (Credit: iStock, Pixabay)

A startup that empowers buyers to make all-cash offers on homes just got a lot more firepower.

Ribbon, based in New York and Charlotte, North Carolina, announced $330 million in new debt and equity that it plans to use to fuel an expansion into new markets and enhance product development. The investment includes a $30 million Series B led by Greylock Partners, and $300 million in debt from Goldman Sachs. (The debt facility may be increased by $220 million, the company said.)

Founded in 2017 by Shaival Shah and Jian Wei Gan, Ribbon empowers buyers who need financing to compete against all-cash bids in a competitive market.

“Buying a home – especially when you want to sell a current home and level up – can be a frustrating and stressful experience. By bringing technology to the homebuying experience, Ribbon makes it much easier for all parties involved,” Josh McFarland, a partner at Greylock said in a statement.

The round, first reported by Inman, brings Ribbon’s total funding to $555 million. Last year, the company raised a $225 million in a Series A from investors including Bain Capital Ventures, Greylock and Nyca Partners. Bain, Greylock and Nyca also participated in the latest round.

Ribbon currently operates eight markets in North Carolina, Tennessee, Georgia and South Carolina, including Charlotte, Raleigh, Nashville, Atlanta, Charleston, Greenville, Memphis and Knoxville. It said it plans to expand to 20 markets in 10 states by the end of 2020.

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