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Opendoor’s valuation hits $3.8B with latest funding round

Tech startup focuses on disrupting the process of buying homes.

Opendoor CEO Eric Wu (Credit: Resolute Ventures and iStock)
Opendoor CEO Eric Wu (Credit: Resolute Ventures and iStock)

The iBuyer startup Opendoor has raised $300 million, bringing its valuation up to $3.8 billion.

The latest funding round was led by General Atlantic, a previous investor, and companies including Hawk Equity, SoftBank, Fifth Wall Ventures and GGV Capital took part as well, according to TechCrunch. The firm has now raised $1.3 billion in equity and has about $3 billion in debt financing to buy in properties.

Outside agents did land a victory against Opendoor recently when the company took the “Buy It Now” button off of its website and app in the wake of complaints from Realtors.

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Opendoor will use its latest round of funding on product development and expansion. The firm wants to keep increasing the accuracy of its pricing and reduce the time it takes to convince people to pull the trigger on either buying or selling a house.

The firm previously landed $400 million from SoftBank in September.

Opendoor co-founder Eric Wu told TechCrunch that the company plans to remain completely focused on private home buying for now, rather than moving into areas like cars, loans and commercial real estate.

“These capabilities lend themselves well to rental/residential income,” he said, “but that is currently not on our roadmap.” [TechCrunch] – Eddie Small

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