Compass, a real estate brokerage firm based in New York City, now has a valuation of $6.4 billion following its latest funding round, according to TechCrunch.
The company raised funds from a mix of new and existing investors including the Qatar Investment Authority, SoftBank’s Vision Fund, the Canada Pension Plan Investment Board, Slack and Uber-backer Dragoneer Investment Group, and others.
Compass announced the Series G funding round on Tuesday, saying it will use the funds to further its technology advancements and accelerate its growth. Specifically, it plans to invest in cloud, software development, mobile, and artificial intelligence tools to simplify home selling and buying. Management will also expand its engineering and products team further on the West and East coasts.
Compass had a valuation of $4.4 billion last fall after raising $400 million from investors including SoftBank’s Vision Fund and the Qatar Investment Authority. Sources with knowledge of Compass told the Wall Street Journal that the company is now considering an initial public offering in the near term, though it has yet to report a profit.
Founded in 2012 by Ori Allon and Robert Reffkin, Compass offers a platform that connects buyers to real estate agents to sellers. The platform also helps to figure out the timing for sales, pricing, and how and when to stage homes to get the best pricing and the best sales.
“From day one we knew, when we had just a small amount of people at the company, we had a very clear focus,” TechCrunch quoted Compass co-founder and chairman Ori Allon as saying. “We wanted to bring more tech and data and transparency to real estate, and I think it’s paid off.”
According to its funding statement, Compass posted three consecutive months of record revenue and an annual revenue growth of 250% in the second quarter of last year. The company generates most of its revenues from commissions it splits with brokers.
