Redfin Raises $71 Million in Funding Led by Wellington, GlynnKelly Gilblom
Redfin Corp., an online real-estate brokerage, raised $70.9 million in a financing round led by institutional investors Wellington Management Co. and Glynn Capital Management.
The investment brings Redfin’s total funding to about $167 million, according to a statement from the Seattle-based company. Redfin didn’t disclose a valuation, which was less than $500 million in 2011.
The funds will help Redfin develop new technology amid escalating competition in the U.S. online real-estate landscape. Since Redfin’s last funding in November 2013, of $50 million, real estate website Zillow Inc. agreed to buy rival Trulia Inc., and News Corp. said it would purchase the owner of listings website Realtor.com.
Redfin uses its website to generate leads for home buyers and also employs teams of salaried sales agents to complete a sale. The company operates in 48 markets in the U.S., according to Jani Strand, a spokeswoman.
“Redfin will put this capital to good use” Glenn Kelman, Redfin’s chief executive officer, said in the statement. “With more market share, we can pair buyers and sellers more efficiently.”
Other investors include Brothers Brook, an investment firm led by Priceline Group Inc. chairman, Jeffery Boyd, and Annox Capital Management, led by Redfin board director Bob Mylod. Funds and accounts managed by T. Rowe Price Associates Inc. and Tiger Global Management also participated, after investing in the November 2013 fundraising round.
Kelman told Bloomberg News in 2012 that “we expect to be public in 2014.” In an interview last year, he said he wasn’t sure when the company will hold an IPO.