UPDATED Sep. 11, 2020, 1:54 pm: Home-buying startup Orchard has raised $69 million in its latest funding round.
The New York–based company, formerly known as Perch, allows homeowners to buy a new home before they sell their own. In recent years, it’s broadened its offerings to include a title and escrow unit and a lending service.
The Series C round was led by Revolution Growth, according to Housing Wire, which first reported the news. A collection of existing backers, including FirstMark, Navitas and Accomplice, were also involved.
Orchard’s CEO and co-founder, Court Cunningham, told Housing Wire the company’s goal was to make the home-sale process more streamlined.
“Our vision is to bring real estate into the modern age by allowing customers to manage their entire experience through one simple digital platform,” he said.
The startup, which raised $36 million earlier this year, connects homeowners with an adviser to help them through the sale and purchase process. When the homeowners find a new property, Orchard fronts the cash to put in an offer before they sell their existing home. Orchard then facilitates the sale of the old home, charging a 6 percent fee.
If the home is not sold in 120 days, Orchard offers to buy it. In February, Cunningham told The Real Deal that 85 percent of homes are sold before the deadline.
“We feel like real estate agents that are not adding a ton of value should charge a more modest fee or, you need to create value and share it back with the consumer to justify that 6 percent fee,” Cunningham said, “and that’s what we’re doing.” [HW] — Sylvia Varnham O’Regan
Correction: An earlier version of this story said that if a home was not sold in 90 days, the company would offer to buy it. That is no longer the case: Orchard changed the time period to 120 days earlier this year.