Recurring entrepreneurs Alister Moreno and Pablo Fernandez founded the company in 2018 with the aim of providing Spaniards with digital options when buying and selling their home. The iBuyer model, which had proved popular in the United States by Opendoor and Redfin, is also resonating with Europeans.
Clikalia is currently at a rate of over 1,800 acquired properties, which represents a 7 to 8-fold growth compared to a year ago. It also has a team of over 600 people. It recently acquired Inmho, a Spanish property management company, with the aim of expanding its capabilities in this area. The purchase, executives said, will provide access to more than 250,000 residential units.
Los Angeles-based Fifth Wall led the roughly $ 70 million equity financing for Clikalia, which also included participation from Luxor Capital and Mouro Capital. Deutsche Bank provided nearly $ 450 million in debt financing. Interestingly, Fifth Wall is also an investor in Opendoor as well as Loft, a Latin American real estate tech unicorn. Luxor has invested in iBuyer Offerpad in the United States.
In line with the iBuyer model, Clikalia guarantees sellers “immediate” liquidity through an offer on their property within 24 hours and, if accepted, a sale within seven days. In around 70% of cases, Clikalia then renovates a good and puts it back on the market. Its mission is to leverage its “proprietary” technology to digitize a historically slow and painful door-to-door sales process.
“When you buy a home from us, you have all of the costs in the price built in,” Moreno told TechCrunch. “If you buy an old house, get a mortgage on an old house, then hire a contractor and an architect for a renovation, it will cost you 4 times as much as we do. And you have to take out consumer credit to finance the renovation. With Clikalia, it’s just a mortgage and you’re good to go.
In November 2020, the company raised approximately $ 14 million in equity. Today it operates in Spain and Mexico, with plans to open in Portugal in January 2022 and expand across Europe over time.
She plans to use her new capital to make more acquisitions and, of course, to do some hiring. Currently, around 70% of its management team are women.
Miguel Nigorra, Partner and Europe Manager of Fifth Wall, said his company was impressed with the founding team, which had already had a successful exit as well as the market opportunity, as well as the economy and unit metrics. “Amazing” the company “compared to many other companies in the market.
“The Spanish market is one of the largest residential real estate markets in Europe – with the equivalent of over 300,000 transactions per year,” he told TechCrunch. “It’s a huge market, and the process of selling a home in Europe and Spain in particular is extremely long, expensive and inconvenient. We are excited by the technological angle that Clikalia brings to a very old-fashioned vertical of the real estate market.