Compass, the New York-based real estate platform cofounded by Israeli Ori Allon, said Thursday it had raised a whopping $400 million from investors led by the Vision Fund of Japan’s Softbank and the Qatar Investment Authority.
Wellington, Institutional Venture Partners and Fidelity joined in he round, which brings the total capital raised by Compass since it was founded in 2012 as Urban Compass to $1.2 billion.It values the company at $4.4 billion, according to Bloomberg News, which if true means Compass’ value has doubled since December,.
Compass’ platform helps home buyers, sellers and renters find properties throughout the United States, and provides data and analytics to agents. The company said the fresh funds would be used to expand its platform internationally and consolidate its position in its U.S. markets.
“We are profitable is a large number of the cites where we’ve been operating for a while,” Allon told TheMarker. “Naturally, in new cities it takes time to move to profitability. There are, of course, cities in which the penetration rate is faster, such as San Francisco, our ninth city. It has people with a technology bent and agents there understand the value of technology.”
Allon, who had been director of engineering at Twitter’s New York office, founded the company with Robert Reffkin, a former Goldman Sachs executive. The two are believed to own 30% of Compass, with Allon’s stake worth as much as $850 million.