Proptech is one of the world’s fastest-growing technology verticals, changing how people design, build and transact with property. While the market in Australia might not be as mature as in the UK and US, proptech continues to pick up the pace down under. In 2021, there were more than 380 proptech companies operating in the space.
This year, in particular, the Australian proptech market has seen its share of news, with investments, appointments, mergers and other significant announcements all taking place. Here, we look at what’s happened in proptech down under during the first half of 2022.
HappyCo raises $72m in Series B funding
HappyCo, an Adelaide real estate software company, raised $72m in a Series B funding round to ramp up its US expansion. It helps property and asset managers, lenders and investors make smarter management decisions using its software. The raise was led by US venture capital firm Camber Creek. The funds will go towards developing new services and expanding the pool of Australian employees.
:Different raises $25m in Series B round
Australian property management company,:Different, announced a Series B round for $25m to help with national expansion. Part of the growth plan includes adding to the team of property managers and investing in its platform. Commonwealth Bank, x15ventures and Antler led the raise.
Archistar secures $11 in funding
Property intelligence platform, Archistar, recently secured $11m in funding. Investors backing the proptech firm include NAB Ventures, Skip Capital, Skyfield, and AirTree Ventures, as well as private investors. The architectural design firm uses artificial intelligence to inform decision-making in the property sector, from finding profitable sites to generating 3D concept building designs.
Proptech UrbanX raises $4.5 million
Brisbane-based proptech company, UrbanX, raised more than $4.5m to scale nationally and increase its presence in the Australian property market. UrbanX helps agents work for themselves while keeping 90% of commission through smart technology. The company received backing from private investment company 29North.
FLK It Over raises $2.13m
Real estate document signing platform and renter app FLK It Over raised $2.13 million, its first capital raise since the company’s inception in 2018. The app allows tenants to sign leases with their smartphones and processes over 14,000 transactions each month. Investors include Charter Hall co-founder, David Southon.
Possibl partners with Managed App
Possibl, a provider of cash flow solutions for investment property owners, vendors, agents and brokers, partnered with Managed App, an end-to-end payment gateway and management platform. The partnership enables property investors to access funds for costs associated with managing investment properties, facilitating smarter cash-flow management.
Homely partners with National Property Group
Homely, Australia's largest-backed real estate marketplace, partnered with National Property Group. The cooperation sees National Property Group's data integrated into Homely's offering to deliver more accurate home values, average values and sold prices, so customers are more informed.
Bricks and Agent partners with JLL
Property maintenance platform Bricks and Agent struck a three-year agreement with property service firm JLL. The deal will see JLL partner with Bricks and Agent across its portfolio of managed assets in commercial office and retail space, as well as the residential sector.
RESO announces three new board hires
RESO (Real Estate Sales Online), a platform that enables agents to manage offers, acceptance and contracting for residential sales, announced the appointment of three new board members. Former LJ Hooker CEO, Grant Harrod, former Network Ten CEO, Paul Anderson, and former Citigroup Managing Director, Nick Bagot, joined to help RESO scale its platform throughout Australia and New Zealand.
Openn announces new CEO
Openn, a real-time negotiation platform for agents, buyers and sellers, promoted former COO Sean Adomeit to CEO of its Australia and New Zealand operations. Initially hired as marketing manager in 2017, Adomeit was promoted to COO in 2018 before moving on to CEO. Openn also reported $5bn in property sales, making 2022 a landmark year for the company so far.
Propic hires Head of Innovation
Ryan Campbell, former Head of Martech, joined Propic as Head of Innovation. The artificial intelligence (AI) platform connects people, property and services in the Australian real estate market, with Ryan joining to drive innovation and tailor solutions to individual agency networks and needs.
Mergers and acquisitions
Archistar buys Snaploader
In addition to raising $11m, Archistar acquired interactive 3D experience provider, Snaploader, as it expands into the US market. Snaploader, a Sydney-based proptech company providing interactive 3D experiences for real estate professionals, will augment Archistar’s current offerings. Archistar, which recently moved into a Denver office in the US, also plans to open offices in Florida, North Carolina and Virginia.
Reapit acquires Console Group
Backed by private equity firm Accel-KKR (AKKR), Reapit acquired Console Group Pty. Console has led the way in property management since the early 90s in Australia and New Zealand, with over 2,800 real estate agencies using its software. The acquisition saw Reapit expand its portfolio to provide a market-first end-to-end real estate solution for the complete real estate life cycle.
MRI Software acquires LeaseEagle
Global proptech company MRI Software announced its acquisition of LeaseEagle, a commercial property lease management solution for tenants in corporate, retail and healthcare sectors. The acquisition saw MRI add LeaseEagle to its suite of integrated workplace management systems.
Proptech Awards winners announced
The second annual Proptech Awards announced winners of its 19 categories, including Proptech Leader of the Year. Trish Mackie-Smith, Co-Founder & CEO, Inndox, a digital logbook for property, walked away with the Leader of the Year Award, while PropHero, an investment property finder, won Most Innovative Start-up.
MONEYME expands ListReady to the consumer market
MONEYME, a digital lender and non-bank challenger, expanded its ListReady service to the consumer market. ListReady allows vendors to access up to $35,000 on-demand to help with advertising, marketing, photography, floor plans and repairs and renovations costs.
EG launches $100 million proptech incubator
Sydney-based investment manager EG has thrown its weight behind Australian property technology. It will provide seed and Series A funding to proptech founders with the aim of discovering the next leaders in the space.
7 startups added to REACH Australia
Startups from co-living rental companies to media platforms for real estate agents were named in Second Century Ventures’ 2022 REACH Australia program. The program is designed to help selected startups build their presence in several spaces, including real estate. The seven companies named were RoomMe, Hipla, Settle Easy, Clairco, Futurerent, Home Live and Real Estate Doc.
The year so far
The first six months of 2022 have kept proptech companies on their toes, with investment rounds, partnerships and appointments all happening at a rapid pace. It will be interesting to see what the second half of the year looks like as proptech in Australia continues to influence the national and global real estate market.
To discover how Zai can help your proptech business thrive in the Australian market, get in touch and download the guide below for a deep dive into the trends driving the sector.