Propteq attendee Emoov is set to be the UK’s second largest online agent, just behind Purple Bricks. The merger has propelled Emoov ahead of competitors House Simple and Yopa.
The strategic merger between the three Online Agencies will be headed by Emoov’s Chief Executive, Russell Quirk. The combined value of the companies stand at £89m and a further £15m has been raised from new and existing shareholders, including a cash investment from Northern & Shell publishers, Tepilo’s largest shareholder, and an airtime-for-equity deal with Channel 4’s commercial growth fund.
Vinay Solanki, Head of Commercial Growth Fund remarked: “This is an exciting time for Emoov and presents a great opportunity for Channel 4 to get involved with disrupting a fast-moving and competitive sector in digital transition.”
PropTech as an industry has progressed and continues to disrupt the traditional property sector. The digital agency demonstrates this and grows rapidly but accounts for less than 10% of all real estate transactions, so there’s still plenty of room to expand.
“This deal creates a truly powerful partnership of property experts that are focused upon doing right by the customer and improving the home buying, selling and rental process for all”, said Sarah Beeny, founder of Tepilo and former Channel 4 presenter.
The cash raised will be used to grow the platform, operations, and headcount. Channel 4’s involvement gives media power and focuses on marketing Emoov as the leading go-to agent.
Russell expects market share of the online agency to comfortably reach 30-35 per cent over the next five years. JP Morgan predict that Purple Bricks could own up to 15% of the total UK agency market by 2022.
Fall in property prices in certain boroughs of London following the Brexit vote has slowed down sales for agents.
Real estate firms are becoming more open to working with PropTech companies, and we encourage these discussions at our Propteq meetings and summits. Our unique roundtable chats allow for the international attendees to exchange ideas, collaborate, and uncover trends affecting the industry. To find out more about joining Propteq Club, click here.