Distressed-property startup Sundae raises $80M in Series C round

Real estate marketplace matches buyers and sellers

Sundae co-founders Josh Stech and Andrew Swain (Sundae via LinkedIn)
Sundae co-founders Josh Stech and Andrew Swain (Sundae via LinkedIn)

Sundae, a real estate marketplace linking sellers and buyers of dated or damaged properties, raised $80 million in a recent Series C funding round.

The funding round was led by Fifth Wall and General Global Capital. The technology company has now raised $135 million since August 2018, according to TechCrunch.

The company, based in San Francisco, did not reveal the valuation upon which the Series C funding round was based. Sundae did report a 600 percent revenue increase from June 2020 to June 2021.

Sundae aims to help people unload distressed properties, especially sellers in a rush and at risk of not getting full value. Sundae serves as an intermediary between investors and sellers, with only qualified off-market purchasers able to see properties on the marketplace.

Sign Up for the undefined Newsletter

By signing up, you agree to TheRealDeal Terms of Use and acknowledge the data practices in our Privacy Policy.

The company then provides a $10,000 advance to sellers after a property inspection is completed. The company makes money by charging a fee to buyers when they are “assigned” a property.

Sundae operates in 14 markets across the United States. It will use the new capital to expand, invest in the platform, market the company and add to its 180-person workforce.

Sundae had raised $36 million in its Series B funding round in December. Celebrity angel investors including actor Will Smith, the NBA’s Klay Thompson and American soccer star Weston McKennie participated in the latest funding round.

[TechCrunch] — Holden Walter-Warner