Real estate agent comparison service LocalAgentFinder has closed an oversubscribed funding round, having not only raised $5.5 million from investors but achieved a pre-money valuation of more than $60 million.
The round was led by Scaleup Mediafund, which is owned and supported by News Corp Australia, Network Ten, Nova Entertainment, and Fox Sports Australia, together with small cap fund manager Spheria Asset Management.
Matt McCann, Chief Executive of LocalAgentFinder, the capital raise will help the Melbourne-based company cement its position as a leading agent comparison platform, while providing it with “strategic optionality in terms of realising future value for shareholders”.
The raise follows the recent announcement that LocalAgentFinder has partnered with the Commonwealth Bank to provide their customers with the opportunity to compare real estate agents across the bank’s customer offerings.
“The business is focused on capitalising on its market leading brand, growing agent network and strategic partnerships, like the recently announced partnership with CBA, to get us closer to our goal of making the home selling process less stressful for all Australians,” McCann said.
McCann described the investment from Scaleup Mediafund as a “huge vote of confidence” in his team as well as a “strong endorsement” of the company’s value proposition. Noting that advertising has been a key cost centre, and driver of success, for LocalAgentFinder, McCann said the investment from Scaleup Mediafund will provide his company with “premium above-the-line media”, including access to discounted media assets “within powerful channels”, in exchange for equity.
Michael Lamont, Fund Manager at Scaleup Mediafund said, “LocalAgentFinder is a fantastic opportunity for Scaleup Mediafund to put our media to work and contribute to creating an even larger business. We will work with LocalAgentFinder over the next few years to ensure that it gets the best outcome that our advertising fire power can deliver.”
Last year, the LocalAgentFinder website had over one million visitors with 71,000 properties on the platform. McCann said the company is on track to attract over 100,000 properties in 2018.