Real estate site Redfin files for IPO
Redfin, the popular real estate listings site, has filed for IPO.
The Seattle-based company unveiled its filing, suggesting that it will raise $100 million, a placeholder that is subject to change.
The timing of the filing suggests that Redfin is likely to debut in late July or early August. Because of the JOBS Act, most companies can wait until 15 days before their investor roadshow to reveal their filing. And almost all of them take advantage of this.
This was a long time coming for Redfin, which got its start in 2004. Since then, the company has raised at least $167 million in venture funding.
Greylock Partners is the largest shareholder with a 12.4% stake, followed by Madrona Ventures with 11.4%, Tiger Global at 10.5% and Draper Fisher Jurvetson at 10.2%.
Redfin makes money by taking a 1 to 1.5% commission off of home sales facilitated by their site. They say this is compared to a 5 to 6% industry average, where agent payments can add up.
The company brought in $267.2 million in revenue last year, a significant increase from $187.3 million in 2015 and $125.4 million in 2014. Losses were $78 million for 2016, down from $132.5 million in 2015. Redfin’s first quarter of 2017 was in the red for $52.8 million, up from the $29.5 million loss in the same quarter of last year.
This is a win for the Nasdaq, where the company plans to list under the ticker symbol “RDFN.” Goldman Sachs and Allen & Co. will be leading the offering.
Featured Image: Redfin
Source: Tech Crunch