PropTech start-up Nomad Homes raises $20m to fuel growth

Round led by California-based multi-stage venture fund Acrew Capital

From left, Dan Piehler, Helen Chen and Damien Drap, founders of Nomad Homes. Photo: Nomad Homes
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Nomad Homes, a PropTech start-up that caters to clients in the UAE and Europe, raised $20 million in a series A extension round as the company aims to expand its footprint and improve its technology.

The round was led by California-based Acrew Capital, a multi-stage venture fund, the company said.

A mix of new and existing investors also participated in the round, including 01 Advisors – an investment fund co-founded by former Twitter executives Dick Costolo and Adam Bain – HighSage Ventures, Abstract Ventures, Partech, Precursor Ventures, Potluck Ventures, Knollwood and several undisclosed hedge funds, among others.

The new capital will be used to invest “in growth, further build out its AI [artificial intelligence]-driven co-pilot for buyers and launch Nomad Homes Private Client”, the company said.

“Buyers deserve expert representation just like sellers do, one agent representing both buyers and sellers is just not fair,” Nomad Homes’ chief executive Helen Chen said.

The company was founded by three friends – Mr Piehler, Ms Chen and Damien Drap – who bonded over their frustrations of finding a home in a new city.

Launched in 2019, Nomad pairs technology with local customer service experts who assist clients in buying homes. It offers a customised home-buying process, from the initial search to financing to signing the final agreement.

It also offers buyers access to off-market listings. All the services come at no additional cost for home buyers because the standard buying commission is shared with the agent selling the home.

PropTech applies technology to the real estate industry, creating an ecosystem that encompasses everything from property management and bookings to construction and analytics, all largely accessible using a mobile app.

The global PropTech market is projected to grow to $86.5 billion in 2032, from $18.2 billion this year, at a compound annual rate of almost 17 per cent, data from Future Market Insights showed.

Nomad Homes Private Client is a service for clients purchasing a single property or a portfolio of assets over Dh10 million, the company said.

It is similar to high-end private banking solutions, in which advisers provide expert guidance, develop data-led negotiation strategies and ensure privacy for buyers.

Operating in France, Spain, Portugal and the UAE, the company raised $20 million in September 2021 in a series A round. Since then, it has grown more than 24 times.

“We have seen the company's tremendous growth over the past few years,” said Vishal Lugani, general partner and co-founder of Acrew.

“Nomad dramatically improves real estate agents' workflow while also helping bring more trust and transparency to consumers who are looking to buy their home.”

Updated: October 24, 2023, 3:00 AM