Real estate fintech Reali winds down
Reali, a home buying and lending platform, is shuttering operations.
Why it matters: The move shows how quickly the fates of fintechs can change. A year ago, it raised $75 million in Series B equity funding.
Driving the news: "Due to the challenging real estate and financial market conditions and unfavorable capital-raising environment, Reali determined the best course of action is to close," a company press release stated.
Flashback: Launched in 2016, Reali attracted investors like Zeev Ventures, Akkadian Ventures and Signia Venture Partners. It has raised over $100 million in funding since its launch.
- Its business — which replaced the traditional broker's commission with flat fees — sought to make it easier for consumers to buy a home and sell their old place in one transaction.
The big picture: Amid rising interest rates and high inflation, the housing market has cooled, with northern California slowing faster than the rest of the nation (Reali is heavily focused on the state).
- Shares of real estate tech startup Opendoor are down about 85% since their 2021 peak, while Redfin is over down 90%.
Of note: Reali plans to lay off most of its employees Sept. 9, and is now seeking to sell off parts of its business, including mortgage origination, title and escrow, and power buying.