Redfin is an online-centric real estate brokerage that runs its own full brokerage operations rather than relying solely on referrals. The company hires agents on salary (not commission) and integrates local MLS data as it launches in new markets. In markets where regulations permit, Redfin refunds up to half of the buyer’s agent fees. Redfin is currently active in 48 U.S. markets, up from 22 two years earlier, and its agents have closed over $20 billion in home sales. The company completed its first acquisition earlier this year when it bought Walk Score and has indicated it may pursue more small acquisitions. Management says it will use new capital to expand into additional markets and accelerate local market-share growth. Redfin operates a technology-driven real estate brokerage featuring map-based search and tools that streamline home transactions. Its platform includes tour-scheduling, an online deal room and targeted digital campaigns for listings. Agents receive bonuses based on customer satisfaction rather than solely on the sale. The company intends to use the new capital to develop technology to further improve the home buying and selling process. Redfin currently serves 22 U.S. markets and has closed more than $13 billion in home sales. The company is led by CEO Glenn Kelman and had previously raised $45.7M in venture capital. Redfin operates an online real-estate service aimed at reducing inefficiencies and transaction costs for home buyers and sellers. Since launching in 2006, its users have purchased or sold more than $6 billion in homes through the service. The company reports an average savings of more than $7,000 per transaction and says it has saved users $85 million in aggregate. Redfin cites high user satisfaction (97% of past users would recommend the site) and notes most users are first-time buyers or sellers, with the fastest-growing segment being customers over 45. The company is continuing to raise capital to expand and push its effort to "reinvent the real estate market." Its recent financing activity has materially increased its total capital raised. Redfin operates an online real estate marketplace and brokerage that combines rich MLS data, a highly rated iPhone app, and in-person agent-led home viewings booked online. Buyers receive a refund of 50% of Redfin's commission at closing; sellers pay a flat $5,000–$7,000 fee (with a $1,000 discount if also buying through Redfin). The company says customers appreciate the service and has closed more than $2 billion in home sales since launching in February 2006. Redfin reported profitability over the summer and has exceeded a $20 million revenue run rate (up from $15 million the prior summer), and it has roughly quadrupled in size since 2008. The service is available across multiple U.S. markets including Boston, Chicago, Seattle, Washington DC, Baltimore, Long Island/Westchester, and most of California (including the Bay Area, Southern California, and Sacramento). Given the roughly $1 trillion U.S. home market, the article frames significant room for growth. Redfin is a Seattle-based real estate website that combines MLS listing information and historical sales data into a single interactive map. The company represents buyers through a call center of licensed real estate professionals and reimburses two-thirds of the buy-side real estate fees at closing, with the average home buyer saving around $10,000. Redfin also represents sellers and aims to remove agents from at least half of home sales. Since a May profile on 60 Minutes, the company has completed more than $350 million in real estate transactions and has saved customers around $6 million in commissions. Its business model has prompted pushback from realtors trying to limit MLS access, block customer reviews, refuse Redfin offers, and in some cases vandalize signs.

Total raised

$166M

Funding rounds

6

Latest round

Equity

Latest activity

Dec 2014