Dongnae Secures $4.1M Seed Extension

Dongnae Secures $4.1 Million Seed Extension to Streamline South Korea’s Real Estate Market

South Korea’s real estate landscape is characterized by significant fragmentation. Consequently, individuals seeking new homes frequently engage with numerous brokers in their search.

Established in 2020 by a former executive from WeWork, Dongnae aims to establish a unified platform for brokers, functioning as a multiple listing system (MLS).

Since completing its initial seed funding round last year, the company has expanded its network of brokerage partners to exceed 70.

New Funding and Key Investors

Today, Dongnae announced the successful completion of a $4.1 million seed extension, effectively doubling its total funding to $8.2 million.

This latest funding round was spearheaded by investment firm NFX, with continued support from Flybridge and MetaProp, who previously led Dongnae’s first seed round.

Pete Flint, a general partner at NFX and co-founder of Trulia, alongside a former Zillow board member, will be joining Dongnae’s board of directors.

Additional investors include Goodwater Capital, Maple VC, and a group of strategic angel investors located in both South Korea and the United States.

Strategic Growth and Expansion Plans

“This is a period of substantial growth for our company, and we are focused on the effective implementation of our market entry strategy,” stated Matthew Shampine, founder of Dongnae and former head of WeWork Asia, in an interview with TechCrunch.

“Pete Flint and Brittany Yoon from NFX offer a valuable combination of real estate knowledge and experience within the Korean startup ecosystem, which will be incredibly beneficial to Dongnae.”

Dongnae also revealed the launch of its Android application today.

Both the Android and iOS applications enable prospective renters and buyers to browse property listings and schedule viewings within the Seoul metropolitan area.

Key Metrics and Performance

Shampine reported that Dongnae currently features over 8,000 listings.

Since the previous funding announcement five months ago, the company has seen a more than 65% increase in closed deal volume and a 150% rise in revenue.

The newly acquired funding will be allocated towards expanding Dongnae’s brokerage network throughout the Seoul metropolitan area, which represents nearly half of South Korea’s population.

Resources will also be dedicated to the ongoing development of its technology and brokerage teams.

Early Partnerships and Future Outlook

“When we secured our initial seed funding, our brokerage partner program was just beginning, and we had only one partner,” Shampine explained.

“Our first partner, Global Real Estate, based in Yongsan, even assisted me in finding my own apartment around the time Dongnae was founded.”

“They have been a supportive and understanding partner as our organization has evolved this year, and we’ve already collaborated to help numerous customers locate suitable homes.”

In a released statement, Flint commented, “Dongnae’s executive team possesses a unique skillset, combining global perspectives with in-depth local real estate expertise. I believe the timing is ideal for Dongnae to address the existing market need in Korea.”