Data Driven Futures

PropTech Immo raises €11m from Series A

Written by Peter Walker

Immo Investment Technologies has closed an €11 million Series A funding round.

The London-based PropTech, which purchases homes on behalf of buy-to-let investors, got the backing of Talis Capital and HV Holtzbrinck Ventures, with participation from Tom Stafford and Rahul Mehta of DST Global, among others.

The startup also disclosed that it has raised more than €60 million in real estate buyer capital, which it will use fund the acquisition of properties. The company then refurbishes these properties and puts them on the rental market as part of a managed package, returning a predictable yield to investors.

Immo has already evaluated more than 10,000 apartments in the launch city of Hamburg and claims its technology can accurately predict property sale prices, as well as current and future rental income.

Co-founder and chief executive Hans-Christian Zappel explained: “Immo buys residential properties directly from consumers on behalf of professional investors, thereby helping consumers sell their home in a fast, reliable, transparent and convenient way and providing investors with desired residential asset exposure at scale.

Zappel continued that proprietary ‘inspection technology’ collects 281 data points about every property. “Everything from ceiling height, decibel noise levels, wall dampness, lumen levels to water pressure gets measured – the resulting asset information is then combined with a hyperlocal market assessment which is based on two automated valuation models that use historical transaction and lettings data as well as environmental data such as traffic flow, crime statistics, average school/restaurant/cafe ratings, average Airbnb ratings in the area, social media activity, distance to supermarkets/places of worship, etc. to come up with the price we are able to offer to the seller.”

Its machine learning model claims to be able to do the financial underwriting of a property “in a matter of minutes” – a process manually takes several days.

Immo generates revenue from investors that pay fees for sourcing, assessing and acquiring property assets. In addition, it receives a subscription fee for ongoing portfolio management.