Orchard’s IPO is off the table — for now.
The proptech startup, the subject of speculation this summer that it would soon go public, said it raised $100 million from new and existing investors, valuing the company at more than $1 billion. An IPO isn’t likely soon, the CEO said.
“There’s no specific timing,” co-founder and CEO Court Cunningham said in an interview today.
“I do think at some point we’ll be a public company. And we are laying the groundwork to be able to do that at a time of our choosing.”
Orchard was reported to be nearing an IPO in June after naming Patrick McClymont, an executive with experience at listed companies, as CFO. It said today that Christa Quarles, who
also has that kind of background, will join the board in October.
The New York-based company, which fronts home equity to homeowners, said in a news release that it tripled revenue and doubled its footprint and employee base in the past year. The Series D fundraising brought total funds to $255 million.
Tech-focused venture capital firm Accomplice, an existing investor, preempted the fundraising and led the Series D round, the company said. Other existing investors including FirstMark, Revolution, First American and Juxtapose also participated, along with a group of new investors.
Cunningham said the firm plans to use the capital to expand into four new markets in 2022 and to start new services, including an offer management tool, Cunningham said. Orchard’s focus recently expanded to Florida and the West Coast from the Southeast and central U.S.
While other startups such as Ribbon, Knock, Homeward and Homelight are seeking to streamline home buying and selling and facilitate cash offers, their products are mostly tools for traditional real estate brokers and agents rather than consumer brands themselves.
Orchard’s leadership aims to make the company’s end-to-end transaction management platform all-encompassing and the dominant consumer brand of its kind — the Amazon of home buying and selling, according to Cunningham.
Seattle’s FlyHomes is its only direct competitor, according to Orchard management. Cunningham said the range of Orchard’s present and future services ultimately will give it an edge.
“One of the reasons we’re going to be launching on the West Coast is to go head to head with them [FlyHomes] and see what we learn,” he said.