M&A / FundingMortgageProptechReal EstateReal Estate Tech

Porch plans to buy stake in RWS for $33M

Porch Group Inc., a Seattle-based company offering software for home services and insurance clients, is planning to acquire a stake in home-warranty and home-inspector proptech Residential Warranty Services for $33 million, according to Indianapolis Business Journals.

The proposed deal was made as part of Porch’s year-end financial report issued earlier this month and includes $29 million in cash, $4 million in Porch stock and additional consideration contingent on performance of a recently launched business line.

Porch noted that the purchase price was more than three times Residential Warranty Services’ (RWS) annualized revenues of $10 million. The purchase does not include the mold-testing and radon-monitoring parts of RWS’ business, according to the report.

“For Porch, it’s just clearly a great fit after working as partners together for many years and strengthens our market-leading position in the strategic home inspection industry,” Porch founder and CEO Matt Ehrlichman told investors during a conference call earlier this month.

“The majority of [RWS] employees” will join Porch, Porch told the Indianapolis Business Journal, adding “and we look forward to learning from them and growing together.”

Launched in 2013, Porch currently has over 24,000 business customers including home inspectors, mortgage and moving companies, utility providers and more. The company says its vertical software helps customers to “reinvent the home service industry” and that its platform helps them to improve operations and grow their businesses.

Porch went public in December 2020 at a $523 million valuation via SPAC merger with PropTech Acquisition Corp., and reported $192.4 million in revenue in 2020. That figure represents a 166% increase in growth from 2020, with $320 million in revenue expected for 2022.

In other recent proptech news, HonestDoor raised a $2.2 million seed round for its real estate valuation platform. Figure and Apollo also announced completing a transaction which included mortgage loans and title ownership transfer via blockchain.

Latest Articles

Content from our partners

Log In

Forgot Password?

Don't have an account? Please


Forgot Password

Please enter your registered email address below to receive a password reset link.

Check Your Email

A password reset email has been sent to the email address on file for your account, but may take several minutes to show up in your inbox. Please wait at least 10 minutes before attempting another reset.

Welcome to FinAssist

Go to your inbox and open 'Welcome to FinAssist, your company discovery platform' to get started. You may also skip your inbox and 'Start tutorial'.