Nested, a London-based PropTech startup, has raised a further £8m in funding in a round led by Passion Capital.
Tim Bunting, a partner at Balderton Capital; and Rocket Internet’s venture arm Global Founders Capital also contributed to the round. This latest round follows a £1.2m raise in September 2016.
Nested, which was founded in December 2015 and launched in January 2016, enables homeowners to sell their properties.
It provides a valuation, marketing and sales service, but also guarantees to sell a customer’s property for 95-98% of the market value within 90 days. If they fail to do so, they promise to offer the seller the cash themselves.
If the property sells for a higher price than that previously guaranteed, the difference is spilt with a ratio of up to 70/30 in favour of the property owner.
Co-founder and CEO Matt Robinson, who also co-founded FinTech firm GoCardless, said Nested was helping five people per month sell their homes within a few months of launching.
“This meant we broke even in our fourth month of trading with revenue at an annual run-rate of more than £1m,” he told TechCrunch.
The Nested team aims to reach 100 deals per month in the not-so-distant future. When asked whether the firm will ultimately be able to achieve 1,000 or 10,000 property sales per month, Robinson replied: “Based on what we’ve seen so far, I believe we can.”
Robert Dighero, of Passion Capital, said: “Consumers have been crying out for a solution to the pain caused by property chains. The success which Nested has already seen in just four months is testament to the combination of a great solution to a real, burning problem and Matt and the team’s drive and ambition – something we have already seen at GoCardless. We believe they are transforming the way property is bought and sold and are proud to support them on the journey.”