Today, proptech Zefir announced it raised €11 million in round.
Selling or buying a home is one of the most stressful life events, and in France, this is exacerbated due to a highly fragmented market spread across more than 40,000 real estate agencies.
Since 2022, the economic slowdown has made it more challenging for homeowners to sell. Sale times have jumped to over 110 days, and the rate of real estate agents going bankrupt in France increased by 117 per cent in 2023.
Founded in 2020, Zefir aims to speed up real estate transactions, starting with instant home purchases.
In January 2023, Zefir launched a "Collective Selling" approach that combines the fragmented real estate market. The model leverages technology to promote agency collaboration, accelerating the connection between sellers and buyers. By pooling resources like property listings and customer databases across thousands of agencies into a single platform and leveraging Al to streamline processes, Zefir speeds up matchmaking, making buying and selling more efficient and dramatically.
Zefir and its partners can sell homes in just 58 days, cutting transaction times by half vs market standard in France. This means sellers and buyers can move forward faster in their projects, at no extra cost compared to selling directly through an agency.
On the agent side, it allows them to close more sales, leading to an average extra revenue of up to €28K per year.
According to Remy Fabre, Zefir co-founder and CEO:
"Rising interest rates aren't the sole cause of the slowdown in the real estate market. The long- standing 'every person for themselves' approach has hurt sellers, buyers, and agents alike.
By reshaping the roles in real estate transactions and guaranteeing adequate compensation for everyone, we've managed to halve the time it takes to buy and sell homes while boosting agents' earnings."
The Collective Selling model got off to an explosive start, skyrocketing from zero to €200 million transaction value in just 12 months and a clear path towards profitability.
"This immediate success shows that Zefir is delivering value to each stakeholder in a real estate transaction", Remy Fabre noted.
"That's why, in order to best serve our customers, we have decided to concentrate all our energy on developing the Collective Selling model and to stop our instant- buying option."
Long- time partner Sequoia increased its investment in Zefir alongside Heartcore, Stride and Third Kind Venture. Zigg Capital also became investors.
Elizabeth Chrystal of Zigg Capital said:
"Zefir is reshaping the European real estate landscape, showcasing the power of cooperation and technology. Their approach represents a significant transformation in a traditionally fragmented and highly competitive market."
According to George Robson, partner at Sequoia Capital:
"The Zefir team has exhibited unparalleled grit and agility in navigating the shifting dynamics of the market and evolving client demands. Their execution of a strategic pivot not only achieved rapid product-market fit but also set the company up for remarkable growth into 2024 and beyond."
The company is set to use the new funding to increase its investments in Product and Al, creating more efficient tools for sellers, buyers, and agents, streamlining and speeding up transactions. It aims to triple transaction value in 2024 and to keep growing its network of real estate professionals.
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