Technology-enabled full-service real estate agent McMakler – one of Europe‘s fastest-growing real estate platforms – today announces its Series C financing round of over 50 million Euros, making it the largest European proptech equity investment to date.
In addition to the equity financing there is an extensive debt component of more than ten million euros.
The financing round is led by leading European investment firm Target Global, which has been an early backer of McMakler, and Israel Growth Partners, the leading growth-stage investor in Israel. Several existing investors, including McMakler’s largest institutional shareholder, Frog Capital, are also taking part in the round.
From the beginning McMakler has operated a hybrid business model, which combines a centralised digital core with face-to-face, personalised service on site. In 2018 the company achieved 500% year-on-year increase in transaction volume with procured real estate volume of 400 million Euros, making them Germany’s market leading hybrid real estate agents. The target for 2019 is to exceed one billion Euros.
“The company’s continuous and sustainable growth since it started shows that we’re on the right track with our hybrid model and that customers trust us“, says Felix Jahn, founder and CEO of McMakler. “Our focus is still on improving the service quality in real estate to bring it up to a new level. With this latest funding round we’re fully equipped to establish McMakler as the leading hybrid real estate agent in Europe.”
Assaf Harel, partner of the leading growth-stage investor Israel Growth Partners, says: “It is astonishing how the traditional brokerage industry is still analog for most parts, and therefore ripe for disruption by data and technology. McMakler holds a clear forerunner role in the proptech segment. We are impressed of the company’s rapid growth since its founding in 2015 and are convinced that McMakler has what it needs to be a European market leader.“
“We are proud to have been early backers of McMakler and are happy to continue supporting the team from our Late Stage Fund to help continue the rapid growth of the business,” said Shmuel Chalets, General Partner at Target Global. “McMakler is part of the new wave of digitization changing the real estate space as well as a great example for how technology can disintermediate broker driven market. Both of these trends are key to our investment thesis’ at Target Global.“
The new funds will be used to further develop McMakler’s transaction platform and in-house-technology and digital tools and increase efficiency to provide an even faster and more transparent and quicker marketing process for sellers and buyers, as well as for the further expansion of McMakler’s teams in Germany, Austria and France.
McMakler has its headquarters in Berlin, and currently employs 450 people, including 255 permanently employed real estate agents, in more than 100 locations and urban agglomerations.