Stoa USA Inc., an Arizona-based proptech which launched its iBuyer software platform FlipOS for investors in single-family houses, today announced securing another $100 million, according to a press release. The funding came from Cantor Fitzgerald, a real-estate investment and financial services firm. This brings the company’s total equity and debt to approximately $300 million.
Previously, Stoa secured $100 million from Cantor Fitzgerald in November 2021. Tom Sella, co-founder of Stoa, says the company has seen an “exponential growth in product adoption” since the last securitization.
“The Stoa team looks forward to what’s possible for our real estate partners with this round of funding, and we’re proud to have the continued support of the experienced team at Cantor Fitzgerald,” says Sella, in the release.
The aim of the funding is to enable FlipOS to work with more real estate investors and scale the growth of the business, providing residential inventory to the housing market at a faster pace than builders and bridging the housing gap in the U.S., the release says.
The statement also explains that FlipOS has seen an increase in traction because of the change in the housing market and attributes a rise in usage to its business model, which helps investors buy, renovate and sell single-family homes at a lower risk than “traditional models.”
“It’s a big deal that we were able to close this round of funding amid a fluctuating housing market,” says Or Agassi, co-founder of Stoa, in the release. “It speaks volumes about the underlying strength of our business model. We continue to scale rapidly but responsibly, maintaining strong unit economics.”
A Bankrate.com analysis says supply for housing is lower than its demand due to rise in first-time homeownership among young buyers and because homebuilders have not been able to keep up with pre-2007 recession demands for homes. In the release, Stoa says FlipOS will focus on the property upgrade market to help investors flip homes faster.
In other recent proptech news, iGuide, a Canada-based 3D tours and floor plan proptech reached a 20% market share in Canadian homes. Marble, a rental management proptech working with smaller landlords, raised $2 million.