Reali, a tech-focused California mobile brokerage, just raised another $ 20 million in Series B funding.
The brokerage, which was founded in 2016 by Amit Haller and Ami Avrahami, uses a mobile app, beacons, artificial intelligence and other forms of technology to create a portal in which people can buy or sell a home without an agent.
The company made waves by offering a business model that could pose a serious threats to agents in the industry: instead of a commission, it charges customers a flat fee of under $ 5,000 (and, as of January, $ 950 for homes under $ 250,000).
Following an early $ 5 million funding round that allowed Reali to expand across the Bay Area, the Series B round will go toward growing its product offering and adding markets in Southern California and, eventually, other cities in the US.
“From the beginning, our mission was to build a digital-first real estate company with a completely different experience that delights home buyers and sellers and saves them thousands in commission fees,” Haller said in a statement.
Led by the venture capital firm Zeev Ventures, the latest round puts the total money raised by Reali at $ 30 million. In the past, Zeev Ventures has contributed to startups such as Houzz, Next Insurance and Audible. Signia Venture Partners was also among the Reali investors.
“This new funding will allow us to accelerate our product roadmap beyond the app and expand our market base to new cities throughout the U.S.,” Haller added.
Additionally, Reali plans to offer home tours through augmented reality and mobilize artificial intelligence to make processes related to buying a house, including determining a listing price and filing documents, more automated.
“As a tech innovator, Reali is ideally positioned to build the leading AI-powered transaction platform for home buyers and sellers,” said Oren Zeev, founding partner of Zeev Ventures in a statement. “The Reali team is addressing some of the industry’s biggest challenges–including lack of tech services and transparency, and inflated commissions. This funding is designed to bring the company’s tech-driven model to more people.”