Flow has recently concluded its pre-Series A investment round, securing $4.5 million (approximately R78 million) in funding, which is a testament to its innovative and leading position in the global proptech industry. The team is thrilled to see such strong traction, growth, and demand for their work, resulting in the largest investment in the proptech sector in the country at this stage and one of the highest in the history of African proptech funding.
Funding for Growth
Flow will receive an investment to fuel its B2B growth strategy, which involves merging its savvy social media-based real estate marketing platform with established international property portals and CRM platforms. Flow’s co-CEOs and co-founders, Gil Sperling and Daniel Levy, have a track record of success in the adtech and performance marketing industry. Their previous venture, Popimedia, was the most significant purchaser of Facebook media inventory in Africa and served major brands worldwide. Publicis, a global communications group, acquired Popimedia in 2015.
Property Industry Fragmentation Solution
The property industry worldwide is currently facing a significant challenge of fragmentation. With millions of agents and thousands of property portals vying for the attention of buyers and sellers on digital platforms, they have not been able to achieve the same level of success as other industries. Flow’s goal is to facilitate the growth of the property industry by connecting buyers and sellers with agents and portals on the platforms where they spend most of their time, such as social media. It is essential for the industry to be brought up to date with the 21st century, and the platform, along with its APIs, enables portals to offer fully-automated off-site advertising on a large scale, including social media and digital out-of-home boards. This, in turn, allows agents and portals to efficiently target and connect with buyers and sellers by utilizing proven best-practice tools.
The ultimate property industry value-add
Over the past few years, property portals have experienced growth by expanding their offerings beyond their base services and adding value-added products. Flow is an excellent value-add product that assists portals in reaching individuals off-site, increasing traffic, and generating more revenue by attracting buyers and sellers based on their location, interests, and willingness to make deals.
The digital advertising industry is expected to grow to $448 billion by 2023, with social media advertising accounting for a third of that amount. Despite this trend being observed across various sectors, the fragmented nature of the property industry has made it difficult for it to benefit from this growth. Flow enables portals, agents, and CRMs to align with this trend and take advantage of the exponential growth potential.
In South Africa, we have demonstrated the effectiveness of Flow with partners such as Prop Data, RE/MAX, Seeff, eXp South Africa, and RealNet. Additionally, in Australia, AgentBox, leading agency groups, and a significant portal went live with Flow in March. We are also making progress in establishing distribution agreements in the United Kingdom and are in discussions with partners in Europe, North America, and South America.
New partners, new opportunities
Flow has successfully raised $4.5 million in a pre-Series A funding round, with Futuregrowth Asset Management leading the way by investing $2 million. Endeavour Harvest Fund and serial entrepreneur & investor Steven Heilbron also participated in the round, along with initial investors Kalon Venture Partners, Vunani Fintech Fund, and Buffet Investments, who increased their investment in the company.
Futuregrowth Asset Management’s Head of Private Equity & Venture Capital, Amrish Narrandes, expressed his excitement in being a part of a South African company that is taking bold steps to bring much-needed change to the global property industry. He added that he and his team have been closely following Flow’s progress in South Africa and Australia and believe that integration into the B2B side of the industry is the next natural step in the company’s evolution.
Kalon Venture Partners’ CEO, Clive Butkow, also shared his conviction in the power of Flow’s platform, stating that the company has proven its value in enabling an antiquated industry. He expressed his excitement in seeing Flow grow into a global brand that solves global problems.
Flow’s vision remains focused on bringing the property industry into the 21st century, and the company is thrilled that its partners, both new and founding, share this vision. With their expertise and experience, Flow is poised to make a significant impact in an essential global industry.