UK-based startup Nested announced Wednesday that it has secured an additional £5 million funds to improve and modernize the home selling experience.
The London-based modern estate firm has been calls the recent funds as ‘strategic investment’ as they bring in Axel Springer to the board in anticipation for a nationwide launch this year.
The startup has been called a modern estate company as it uses technology to Nested manage estate sale, purchase and chain in one place.
The company’s main service pairs local agents with industry-leading tools and technology to help them better support home sellers. It initially launched by offering to front the cash needed to buy your next home before you had sold your existing one, but now covers the entire house-selling journey.
Nested co-founder and CEO Matt Robinson in a TechCrunch report said that the round brings the “vast industry experience and resources” of investors like Axel Springer to the board as the company seeks to expand beyond its current footprint in London.
The proptech firm has been testing a new “hyper-local” approach so it can better service different neighbourhoods in a huge city like London. The idea, according to Robinson gives customers: “a fantastic local agent who knows their area inside out, powered by Nested’s unique technology”.
Nested launch five hyper-local areas in 2020, and Robinson says it has quickly gained up to 15% market share in those local markets. It is planning to launch an additional 30 areas over the next 18 months, as well as moving outside London for the first time.
“We find the best local agents and empower them with unique technology and services versus anyone else in the industry, traditional or online,” Robinson said.
“There are some good traditional agents out there but the tools they have to do their job and for the customer to see what’s happening is pre-internet. We take the best local agents and give them tools to instantly be better at their job and give customers a better experience,” he added.
In 2018, the company also received £120 million in funding raised through equity capital from Northzone, backers of Spotify, Trustpilot and Zopa, and Balderton, which backed the GoCardless team as well as companies like Revolut and CityMapper.
Alongside the support from these existing investors Nested also raised £100m in debt to take the company to the next level and bring some certainty to what was an uncertain property market two years ago.