Have you heard? Sundae has successfully raised $80 million in the series C funding rounds, which are co-led by General Global capital and The Fifth Wall. But what is Sundae? Many people have little or no idea about this particular name. So, let’s learn more about Sundae and how it concerns people and helps them immensely.
Sundae is an online real estate marketplace that connects investors with home sellers. It helps investors who are into bidding on as-is properties with all cash offers. Many homeowners opt for this company as an alternative. Usually, they want to avoid the conventional listing process and thereby sell directly to a buyer- for instance, if there is a reason behind their mortgage or facing problems while keeping up with the maintenance.
The deal is done!
So, being this important as a marketplace, Sundae has done well with raising that amount. But the company was not alone in this journey. Wellington Management, Susa Ventures, Founders Fund, First American Financial, QED Investors, Crossover VC, Prudence Holdings, and Oberndorf Ventures also took part in the financing. This huge success marks this San-Francisco-based Sundae’s 3rd financing within thirteen months, instituting the entire raise since its inception to $135 million on August 2018.
However, Sundae absolutely dismissed to disclose at what valuation it has secured the Series C raising. Furthermore, the company denied equipping the media with hard revenue numbers, hinting that it only saw a 600% over-the-year increase in income from June 2020 to 2021.
How is this Start-up helping people?
Sundae is now aiming to help people ready to sell damaged or outdated properties for various reasons- like divorce, illness, or even jobless situations. In a few such cases, as per the CEO and co-founder Josh Stech’s words, this kind of vulnerable seller always gets tricked by predatory flippers and fixers. And these fixers only seek to capitalize on the seller’s misfortune.
As in these kinds of situations, the sellers don’t usually have the funds to work on their properties and fix them before selling; Sundae comes forward and enlists them on its platform- acting as the mediator between the seller and investor. And there, it is all vivid to about 2600 off-market potential buyers.
The goal of Sundae
Efficient start-ups like Sundae generally take on aggregate demands from the flippers who, with the help of the marketplace, bid against each other for distressed properties. When a seller accepts, and the inspection is done, the company offers $10,000 cash in advance before helping the homeowners with other expenses and moving costs. Since 2019, the company has been expanding its area slowly, making money by charging potential buyers a fee after assigning them a property. It has launched a dedicated online marketplace for buyers who can easily see the properties and submit individual offers. Thus looking forward, this company is all set to use the new capital and grow as a platform that investors can rely on for trustworthy investment opportunities while building brand awareness
