easyProperty, the online lettings agency set to launch a sales operation later this year, plans an Initial Public Offering after the summer to fund its expansion overseas.
In an interview with the Reuters news agency, easyProperty chief executive Rob Ellice says the firm intends to raise a "significantly larger" amount than the £9.75m it has raised so far.
Ellice says the company is currently valued at £66m.
"At the next round, we'd be seeing someone of a larger scale put a bigger chunk of money into the business. I think we're looking at both an IPO and a pre-IPO round [of fundraising] at the moment" Ellice told Reuters.
He says he has been contacted by funds from the United States, France and Germany.
Another online agency, Purplebricks, and franchise high street agency Hunters are both planning to float later this year on the back of a relatively strong housing market and an increasingly-confident equity market.
The report says that the easyProperty brand is on lease to Ellice for 20 years from Sir Stelio Haji-Ioannou.
easyProperty is launching in Scotland over the summer and has licences to enter France, Italy, Germany, the Netherlands, Spain and Greece - in these territories it will probably deal with local agency partners.
Meanwhile EstatesDirect - a hybrid' semi-online agency which also has representatives in areas to deal directly with clients - has raised another £1.35m through crowdfunding, which is £100,000 more than originally anticipated.
Founders Steve Smith - the Poundland creator - and Match.com creator Darren Richards reportedly put five per cent of the business up for sale to small investors through Crowdcube.
Over 300 people have invested via the platform, with the largest single investment being £175,000.
Comments
Easy brand is not a great brand after they participated in airport reality TV.
Even the good old BBC did comedy programme called Come Fly with Me.
easyProperty would be better off getting the lettings side of the business in order first, before they consider any grand expansion plans. They've been rubbish so far - a complete disaster.
As others have said, either no or very few properties in most areas.
[quote]Ellice says the company is currently valued at 66m. [/quote]
What is this based on, out of interest
There is definitely a place for the online model - especially in this day and age, for convenience and immediacy as much as anything - but I think the likes of easyProperty have seriously underestimated the market they are entering. Other than the odd little burst of activity here and there, they've not made all that much noise and I imagine that's because they haven't had nearly the impact they were expecting. Their success has been very muted, by all accounts.
All the time rightmove and zoopla allow the budget models in, it opens greater investment from the city into budget models and their increased public awareness marketing. OTM is not the answer either as it doesnt have access to all of market listings.
It's time for agents to take back control united. many agents are too blind or stupid to understand that they are very, very small cogs in a big vc's money game.
I have a feeling that there are going to be some very disappointed investors in the online sector of the property market which seems to being bigged up beyond all proportion...the Dot com bubble comes to mind. Many of these investor/speculators clearly seem to have no real idea of how the property market works, but seem to possess a mindless belief that online based estate agency type services are somehow going to completely dominate the market.
Dave- 0 properties in my county or any surrounding.
I thought they would want to expand their lettings business first - 33 properties in Birmingham...