Orchard, HomeLight move toward IPOs with new execs

Both proptechs enable homebuyers to make cash offers

National /
Jun.June 18, 2021 09:35 AM
Orchard's Patrick McClymont and HomeLight's Sean Aggarwal (Photos via IMAX, The Org)

Orchard’s Patrick McClymont and HomeLight’s Sean Aggarwal (Photos via IMAX, The Org)

Two proptech firms that aim to help homebuyers compete in hot markets are steps closer to going public after naming new executives.

New York-based Orchard tapped Patrick McClymont, former chief financial officer of IMAX and auction house Sotheby’s, as its CFO last month, the Wall Street Journal reported. And HomeLight, a Bay Area startup, appointed to its board Sean Aggarwal, chairman of Lyft and former CFO of Trulia, according to Bloomberg News.

Both companies try to make purchasing a home easier by fronting prospective buyers the funds to make all-cash offers. It’s a service in high demand in a market where sellers don’t want to bother with mortgage contingencies and individual buyers compete with each other and cash-flush private equity for a scant supply of housing. The startups claim to give regular people a fighting chance at snagging a home.

Orchard lets customers buy before they sell their current home to ensure they’re not searching for somewhere to stay once they hand over the keys. The proptech funds customers with up to 90 percent of their home’s equity so they can make a cash offer on a house. Then it arranges the sale of the customer’s old home and takes a transaction fee.

HomeLight functions similarly, providing funds to buyers who have yet to sell their current home, enabling them to make a cash offer, Bloomberg reported. The platform also allows sellers access to a network of pre-approved cash buyers to speed up the sale.

Neither company has put a date to an IPO. Orchard’s Chief Executive Officer Court Cunningham expects to raise more in venture capital before taking the plunge.

Founded in 2017, Orchard has raised around $148 million from firms that include FirstMark Capital and Revolution Growth, the Journal reported.

HomeLight was last valued at $498 million according to PitchBook data reported by Bloomberg, though the company is expected to debut at a premium. The proptech startup counts Citi Ventures, Google Venture and Menlo Ventures among its investors. It scored a $100 million credit facility from Credit Suisse Group AG last month, pushing its total asset-backed facilities to $200 million this year.

[WSJ, Bloomberg] — Suzannah Cavanaugh





    Related Articles

    arrow_forward_ios
    Matt Lauer exposes Hamptons estate to the market
    Matt Lauer exposes Hamptons estate to the market
    Matt Lauer exposes Hamptons estate to the market
    PHE at 51 Jay Street and 4 Hunts Lane (Compass)
    Dumbo penthouse leads Brooklyn’s luxury market
    Dumbo penthouse leads Brooklyn’s luxury market
    605 3rd Street and Casper's Luke Sherwin (Leslie Garfield, Getty)
    Firm offer: Casper co-founder pays $500K over ask in Park Slope
    Firm offer: Casper co-founder pays $500K over ask in Park Slope
    Housing prices broke records for the third consecutive month in May, surging 16.6 percent over May 2020 (iStock)
    Nowhere to go but up? Home prices smash another record in May
    Nowhere to go but up? Home prices smash another record in May
    34-20 Junction Blvd in Jackson Heights and Shorewood CEO S. Lawrence Davis (Google Maps, Shorewood)
    Shorewood plans 227K-sq ft mixed-use project in Jackson Heights
    Shorewood plans 227K-sq ft mixed-use project in Jackson Heights
    Landis raises $165M with funding from Will Smith, Jay-Z–backed company
    Landis raises $165M with funding from Will Smith, Jay-Z–backed company
    Landis raises $165M with funding from Will Smith, Jay-Z–backed company
    Soho’s zoning madness, such as artists-only lofts and a ban on ground-floor retail, may finally change with a proposed rezoning.
    The shopping district that banned retail: Soho’s incoherent zoning
    The shopping district that banned retail: Soho’s incoherent zoning
    (Illustration by Alexis Manrodt for The Real Deal)
    The Real Deal’s Prodigy exposé wins NY Press Club Award
    The Real Deal’s Prodigy exposé wins NY Press Club Award
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...