UK-based "modern" estate agency Nested has raised a further £5million.
The investment, which follows its previous fundraise of £20m, includes new investor Axel Springer, a prominent investor in the new breed of estate agents, who participated through its subsidiary Aviv Group in the round, together with existing shareholders Balderton and Northzone Capital.
The investment is described by Nested CEO Matt Robinson as “an investment that brings the vast industry experience and resources of Axel Springer to the board, in advance of Nested expanding the footprint of our Modern Estate Agent offering in 2021”.
The disruptive agent used the cover of Covid-19 to test a new growth model, focussing on making its estate agency service hyperlocal to give customers the best of both worlds: a fantastic local agent who knows their area inside out, powered by Nested’s unique technology.
Nested launched in five areas in 2020 and has quickly gained up to 15% market share in the local markets across London. With another handful of areas launching in Q1 the company is planning to launch an additional 30 areas over the next 18 months, as well as moving outside London for the first time.
Robinson added:: “The average home-selling experience is poor and it’s not at all clear what your agent is even doing. There are some great agents out there, however, the tools traditional agents have and the services they can offer to customers are antiquated.
"That’s why we’ve built a truly modern estate agent where we hire the best local agents out of traditional agency and support them with unrivalled technology and unique features like our buying agent, chain management and advance. The result: a far better experience where you know you’re getting the best possible outcome for your sale. And customers agree: we’re proud to be rated as “Excellent” on Trustpilot and recently became the only Mumsnet-rated estate agent in the UK.”
As an example of this tech edge, Nested recently released updates to its mobile app which give home-sellers instant access to every aspect of their sale from viewing feedback and scheduled viewings to even showing what actions your agent has taken to generate enquiries and how many times they have chased up specific enquiries.
Dr Marc Rustige, from Axel Springer, said: “We are firm believers in the opportunity to modernise and digitise estate agency services. From our global market scan we could see that Nested were building out a powerful offering that combines a superb experience for home sellers and buyers. We are already seeing the success of their approach with strong growth in local market share across London.”