Stoa Inc., a Phoenix-based property technology company, has raised $100 million in new debt financing, its third significant capital raise since the company launched in 2018.
Stoa runs a platform called FlipOS that works with fix-and-flip renovators to buy property. The company raised $136 million in series B financing last November and another $50 million in May.
The latest funding was underwritten by Cantor Fitzgerald, a financial services firm that worked with Stoa in its series B financing last year.
Stoa has now raised about $300 million in equity and debt financing.
“The Stoa team looks forward to what’s possible for our real estate partners with this round of funding, and we’re proud to have the continued support of the experienced team at Cantor Fitzgerald,” Stoa co-founder Tom Sella said in a statement. “It’s been less than a year since our initial $100M securitization, and we’ve seen exponential growth in product adoption since then.”
FlipsOS works with home renovators who want to lock in a buyer before starting their work. A flipper on the FlipOS platform works with the company to find a good property, agree on what work needs to be done and then FlipOS agrees to buy the property once the work is complete.
Lining up a buyer before work begins removes uncertainty from the flipping process. Stoa and FlipOS then have a newly renovated property that they can go out and sell.
“It’s a big deal that we were able to close this round of funding amid a fluctuating housing market,” Or Agassi, Stoa’s other co-founder, said in a statement. “It speaks volumes about the underlying strength of our business model. We continue to scale rapidly but responsibly, maintaining strong unit economics. We’ve created a business that people want to invest in regardless of macroeconomic conditions.”
Stoa employed about 50 people last November and currently has 154 team members, most of whom are based in the Valley.
