Homeownership startup Ribbon has raised $150 million, it was announced Tuesday.
The company secured $75 million in Series C equity financing and $75 million in additional working capital. A Ribbon spokesperson declined to disclose the valuation at which the funding round was raised.
The funding round was led by Greenspring Associates with repeat participants including Greylock, Bain Capital Ventures, NFX, Nyca, Thomvest, and Jake Seid.
Founded in 2017, Ribbon partners with real estate agents and lenders to purchases homes on behalf of their buyers with cash. The homeowners are then able to rent the home from Ribbon while they work to sell their old ones. Once the old home is sold, they are able to buy the home from Ribbon.
Ribbon has already seen exponential growth this year and supplied $1.5 billion to qualified home buyers last quarter, according to the announcement.
“The historically low inventory of homes and hyper-competitive housing market has opened eyes: everyday buyers lose out on homes as affordability disappears, and other solutions for agents and lenders are insufficient to meet the moment. They all deserve better,” Shaival Shah, the Co-Founder and CEO of Ribbon, said in a statement. “Ribbon has become stronger by partnering with the ecosystem of agents and lenders — together we’ve empowered the consumer with best-in-class software and home financing solutions.”
The new raised capital will aid Ribbon’s quest to expand to half of the U.S. by 2023. Currently, the company services customers in North Carolina, South Carolina, Tennessee, Georgia, Texas and Florida.
“In a moment when one third of home offers are cash, consumers have a competitive entry point with Ribbon’s novel ecosystem approach,” Seyonne Kang of Greenspring Associates said in a statement. “In the wake of Ribbon’s exponential growth, we are excited to partner as they grow their footprint in the United States, and help more people compete for — and realize — homeownership.”