PropTech startup LocalAgentFinder has successfully raised $5.5 million in a funding round led by Wentworth Global Capital Partners, preparing for a potential IPO, acquisition, or additional strategic investment later this year.
Established in 2007, LocalAgentFinder is a platform that allows real estate agents to compete for the opportunity to sell your property. Matt McCann, former iSelect CEO, was appointed as the company’s leader last year.
Wilsons Advisory has been engaged as the firm’s financial advisor to help determine whether to proceed with an ASX listing this year or explore recent strategic investment opportunities from various parties.
Acknowledging the strategic interest in their business, CEO Matt McCann said that the board is considering if an investment from a strategic partner offers an attractive alternative or support to an IPO.
This funding follows a $12 million investment in competitor OpenAgent from Westpac’s Reinventure, and a $5 million round for real estate agent rating platform RateMyAgent.
McCann revealed that the newly raised funds would be used for brand campaigns, platform improvements, expanding customer support, and exploring international expansion.
Over the past year, more than 65,000 homeowners have used LocalAgentFinder to find real estate agents for selling or renting their properties. The website generates revenue by charging agents a standard service fee on a pay-on-success basis, amounting to 0.375% of a property’s sale price or a week’s rent for rental listings.
