Clikalia Secures $518M to Expand iBuyer Model in Europe
Clikalia Secures Significant Funding for European Expansion
Clikalia, a Spanish proptech company, has successfully raised a substantial $518 million through a combination of debt and equity financing. This represents one of the largest venture capital rounds completed in Spain to date.
Company Origins and Growth
Founded in 2018 by serial entrepreneurs Alister Moreno and Pablo Fernandez, Clikalia was established to offer Spanish citizens modernized, digital solutions for both purchasing and selling residential properties. The iBuyer model, which has gained traction in the United States with companies like Opendoor and Redfin, is now demonstrating its appeal within the European market.
Currently, Clikalia is experiencing rapid growth, with a property acquisition rate exceeding 1,800 units. This signifies a 7 to 8-fold increase compared to the previous year. The company employs a team of over 600 professionals.
Strategic Acquisition and Expansion of Services
Recently, Clikalia acquired Inmho, a Spanish property management firm, to bolster its capabilities in property management. This acquisition grants access to a portfolio of over 250,000 residential units. The move is intended to enhance the company’s service offerings.
Investment Details
The equity financing, totaling approximately $70 million, was spearheaded by Los Angeles-based Fifth Wall, with additional participation from Luxor Capital and Mouro Capital. Deutsche Bank provided the remaining $450 million in debt financing.
Notably, Fifth Wall also holds investments in Opendoor and Loft, a prominent Latin American real estate technology unicorn. Luxor Capital has previously invested in Offerpad, a U.S.-based iBuyer.
The iBuyer Model in Practice
Following the iBuyer framework, Clikalia provides sellers with swift access to funds by offering a property valuation and purchase offer within as little as 24 hours. If the offer is accepted, the sale can be finalized within seven days.
In approximately 70% of transactions, Clikalia undertakes property renovations before re-listing the property for sale. The company aims to utilize its “proprietary” technology to streamline and simplify a traditionally complex and lengthy home selling process.
Cost Advantages for Buyers
“When purchasing a home through us, all associated costs are incorporated into the final price,” explained Moreno to TechCrunch. “Acquiring an older property, securing a mortgage, and then engaging contractors and architects for renovations can be four times more expensive than our all-inclusive approach. Furthermore, separate consumer loans are often required for renovation expenses. Clikalia offers a single mortgage solution.”
Current Operations and Future Plans
Clikalia previously secured approximately $14 million in equity funding in November 2020. The company currently operates in Spain and Mexico, with planned expansion into Portugal in January 2022 and further growth across Europe in the coming years.
The newly acquired capital will be allocated towards strategic acquisitions and continued workforce expansion. Currently, women comprise approximately 70% of Clikalia’s executive team.
Investor Confidence
Miguel Nigorra, partner and head of Europe for Fifth Wall, stated that his firm was particularly impressed by the founding team’s prior success, the substantial market opportunity, and the company’s “amazing” financial performance and key metrics when compared to other companies in the sector.
“The Spanish real estate market is among the largest in Europe, facilitating over 300,000 transactions annually,” Nigorra told TechCrunch. “The process of selling a home in Europe, and Spain specifically, is often excessively time-consuming, costly, and inconvenient. We are enthusiastic about the technological advancements Clikalia is introducing to a traditionally outdated industry.”