Just a few months after completing a $136 million funding round, a Phoenix company that makes an ibuyer platform for flipping homes has raised $50 million more.
Stoa USA Inc., whose platform is called FlipOS, received the fresh cash infusion from California-based venture capital firm Zeev Ventures, one the investors that backed the company during last November's series B financing round.
The new money will help the startup to partner with more real estate investors in new and existing markets, as well as to continue to develop FlipOS, the company said.
In the process, the fresh chunk of capital also means more hiring in the Valley. Stoa said It plans to bump up its headcount to 200 employees by the end of this year, which it said is a 300% increase from the beginning of the year. Stoa said it has 100 employees currently, and it has a dozen positions listed on its careers page, including for a vice president of sales.
“Our team is thrilled to be raising this $50 million round at a significantly higher valuation than our previous round, which just closed last November,” Stoa Co-founder Or Agassi said in a statement. “Our continued growth indicates that we’re meeting a real need for real estate investors while providing communities across the country with good homes.”
The FlipOS platform works by giving home flippers a buyer before they start renovations on a house. FlipOS analyses a property and makes the flipper an offer to buy the house once it’s ready to be rented out or sold. The platform also lets renovators know exactly what fixes to make before selling to FlipOS.
The company said it closes within five days after renovations are done.
The company, which was founded in 2018, said it has raised nearly $200 million in equity and debt since it launched its service in 2021.
Stoa’s other co-founder, Tom Sella, said his team will be able to ramp up all facets of its operations with the latest cash infusion.
“We have already seen tremendous success with this product, and with this funding, we will be able to speed up our progress in product and engineering as well as our sales and marketing efforts,” Sella said in a statement.
In addition to Arizona, the company’s markets include Florida, Texas, North Carolina, South Carolina and Georgia.
Zeev Ventures’ founding partner Oren Zeev said he sees a potential "game changer" in Stoa.
“The Stoa team has built something truly unique with potential to dramatically change the way the single-family investment market operates,” Zeev said in a statement. “I am proud to support them in creating more good single-family homes through technology.”
