PointData, an AI-powered proptech company that automatically assesses development potential for capital city residential land, announced plans to raise $11 million to accelerate its next leg of expansion, according to Australia Financial Review.
The Adelaide-based startup says that it plans to raise the $11 million by June, with intent to return to angel investors and family offices that helped the company with its previous seed and Series A rounds.
PointData uses AI and machine learning to automatically value properties each week, and determine the potential for subdivision land allotments. The company has up to 24 unique data points on each property, using the data to provide real-time valuations based on broader market shifts and industry demand.
The company has been successful with its clientele so far, with customers including the South Australian government, Land Services SA and one of Australia’s largest credit unions, People’s Choice Credit Union.
In addition, the platform is on track to have full coverage of Australia’s capital cities within 12 to 18 months, following recent expansion to West Australia and plans for Victoria.
Despite the potential for interest rate hikes, PointData chief executive George Giannakodakis says this should only increase demand for the providers’ services, due to growing need for buyers to maximize potential return.
“If anything it makes people want to use it more,” Giannakodakis said in response to the Reserve Bank’s preparations to stave off inflation.
In step with its expansion efforts, PointData also recently appointed two Sydney-based directors, including Simon Basheer and Monique Dorigo. Basheer previously served as president of the Urban Development Institute of Australia, and Dorigo headed Marketing at LexisNexis Pacific.
Giannakodakis added that the company currently values about 1.5 million properties each week, and says its technology can rank every developable site by land profitability on subdivision. In addition, it also can differentiate potential profitability and value rates on a street-by-street micro basis.
In other recent proptech news, Built Technologies announced impressive growth alongside a $213 million fundraise and unicorn status. Remote worker-focused smart home network Wander also announced a $20 million Series A led by QED Investors.