Digital real estate agent Strike has received £ 11 million in funding led by Direct Line founder Sir Peter Wood and his new investment firm SPWOne.
Instead of charging a commission or fee to sell homes, Strike earns referral fees from mortgage lenders, insurance companies, and lawyers for the advice it provides to sellers.
Channel 4’s new sponsor Ventures also invested in the round in a stock-to-media swap deal with existing investors Freston Ventures and Toscafund.
“The ability to sell a home for free, without paying any real estate agency commission, has always had to be well received,” said Sam Mitchell, CEO of Strike. FTAdviser… “[We’re] seeks to turn the industry upside down. “
Founded in 2007 as Housesimple, the fintech company was renamed Strike last year, launching its free sale model in 2019.
To date, the company claims to have sold over £ 4.5bn of properties and helped over 45,000 people move home.
The company’s platform, registered as a designated representative of the Mortgage Advisory Bureau, gives clients access to over 12,000 mortgage transactions.
Fintech describes its services as “fully managed sale”. In addition to increasing revenue through its consulting channels, the company also offers value-added services to merchants such as professional video trailers or organized screenings.
The funding will support the company’s continued UK expansion, and it came just as Strike welcomed its new Chief Technology Officer, Dan Rafferty, who previously spent more than 14 years at Foxtons Real Estate, where he served as Chief Information Officer.
“We are focused on expanding our digital-centric offering through strategic investment and innovation,” Mitchell said.
Strike’s goal next year is to become “the UK’s largest real estate brand” with a presence in the north of England. Just last week, the firm expanded its free-of-charge service to the Midlands.
Wood, who also sold GoCompare.com late last year, believes his latest investment program, Strike, and its “free sale” has “significant potential.”
“Strike’s clarity and innovation caught our attention,” Wood continued. “The company’s approach to moving home, supporting customers at every stage of their transaction and experience resonated with us.”