Ribbon Raises $150 Million to Expand Digital Homebuying Platform Nationally
It’s been quite a year in the real estate market. A hot sellers market has been stoked by record low mortgage interest rates, rising home prices, and lack of inventory. It’s harder than ever for a qualified buyer to get the home they love -- multiple offer situations, which used to be rare, have become the norm. Buyers, and their agents, need a strong partner to get their offers accepted. For that reason, it’s been quite a year at Ribbon as well.
In the last year we’ve seen 15x growth. Between the first and second quarter of 2021, we’ve more than doubled the number of agent registrations leading to 6x growth in offers accepted, enabling 6x the number of everyday, qualified buyers to secure their dream home. We now have a network of 20,000 agents and loan officers across over 100 brokerage and lending partners.
We’re thrilled to have helped create $650 million in home offers a month on Ribbon. Word-of-mouth adoption now represents an overwhelming portion of demand and we were able to grant $1.5 billion in Buying Power to qualified home buyers in the last quarter alone. To say we’re honored to help these worthy buyers and their agents would be an understatement.
Our CEO Shaival Shah said it best, “The historically low inventory of homes and hypercompetitive housing market has opened eyes: everyday buyers lose out on homes as affordability disappears, and other solutions for agents and lenders are insufficient to meet the moment. They all deserve better.”
And we’re ready to keep building for them:we’re excited to announce we have closed a new round of funding that will allow us to drive an expansion to help even more US buyers get the home they love.
As of September 2021, we have secured another $150 million for Ribbon—inclusive of $75 million in Series C equity financing and $75 million in additional working capital. We also upsized our $500 million credit facility. This series was led by Greenspring Associates, with participation from existing investors Greylock, Bain Capital Ventures, NFX, Nyca, Thomvest and Jake Seid. We’re also welcoming new strategic investors, including First American Financial, Waterfall Asset Management, TriplePoint Capital, Spencer Rascoff’s 75 & Sunny Ventures, Gary Beasley, Gregor Watson, and Guy Gal.
The short answer is that it means a lot of great things!
Firstly, this investment will enable us to aggressively expand nationally. We’ll be expanding to half of the United States by 2023. Secondly, it will also enable $10 billion in home transactions annually. This means we can help significantly more agents and clients. Third, it will allow us to invest even more in our software and solutions to meet the consumer and partner demand that we’re seeing across the home transaction journey. And lastly, it will allow us to hire even more Ribbon experts to help maintain the Ribbon experience you deserve. Since the start of 2021, we’ve hired over 100 people -- and with each new hire, we’re able to move quicker and better to meet your needs.
We started Ribbon to make homeownership achievable -- and we feel confident that the next steps for Ribbon will help us continue to do just that. We’re proud to be your partner.
Want to learn more about what we can do to get your client in the door? Book some time with your complimentary Ribbon expert to chat.
Want to be a part of our ongoing mission to make homeownership achievable? Check out our careers page for opportunities.