Tech-focused real estate company REX raises $40 million
In January, technology-focused real estate company REX completed a $45 million Series C funding round.
Now, the company is raising more money.
REX announced this week that it raised $40 million in Series C1 funding to complete its national expansion and broaden the availability of mortgage, insurance, escrow and other services it offers.
In January 2018, REX raised $15 million in its Series B funding to do the same.
Now, REX has raised more than $100 million in private equity to back its business.
According to the company, REX uses data science, machine learning and artificial intelligence to price homes “more accurately than traditional brokerages.” The company then targets those houses to qualified buyers through Zillow, Google, Facebook, Trulia and more.
And it does all this just a 2% fee on both sides of the home sale.
REX also offers escrow, title, mortgage and insurance services.
The company did not provide much detail on the investors that took part in this funding round, stating only that one of the leaders of the round is Ken Griffin, the founder and CEO of Citadel.
“It is terrific to see the advancements that have driven down the cost of trading stocks and bonds being applied to the real estate markets,” Griffin said. “I look forward to supporting REX as it uses predictive analytics and transformative technology to make the dream of home ownership a reality for far more Americans.”
To date, the company has raised $115 million from prominent private investors including McNealy, Griffin, Dick Schulze, founder of Best Buy, Gordon Segal, founder of Crate and Barrel, Amit Singhal, former SVP of search at Google, Diana Nelson, chair of Carlson, Jack Greenberg, former CEO of McDonald’s, Jim Perry, co-founder of Madison Dearborn Partners, and Muneer Satter, chairman of Satter Investment Management.
In 2019, REX has increased listings handled by over 300% and expanded in multiple new markets.
“REX is leading the transformation of an industry that remains stuck in the past and doesn’t provide the value for money that consumers expect,” said REX board member Scott McNealy, co-founder and former CEO of Sun Microsystems. “It’s shown impressive progress in building out its technology and services this year and we’re pleased with the way consumers are responding.”
REX launched in Southern California in 2015 and now operates in 23 cities in 17 states.
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