Opendoor, a tech-enabled home-flipping tech firm valued privately at more than $2 billion, announced Tuesday it bought Open Listings, a Los Angeles-based startup that should help its new parent company boost its inventory of homes and appeal more to buyers. Open Listings, which was one of The Information’s “Startups to Watch” earlier this year, had only raised about $7.5 million but was in the midst of raising a significant Series B before Opendoor stepped in. The deal price wasn’t disclosed.
The deal is interesting for a few reasons. More established real estate players like Redfin and Zillow have experimented with Opendoor’s business—buying suburban homes for a price determined by algorithms and human agents, fixing them up and then selling them. Open Listings, a home-buying platform that makes it easy to browse homes you want to buy without an agent, helps Opendoor expand how many homes it can offer potential buyers, including people who want to trade in their home. It also gets Opendoor a toehold in expensive markets it hadn’t yet touched, like San Francisco and Los Angeles.
But the deal is mixed news for those watching the Los Angeles startup scene. While it means Open Listings won’t grow on its own there, Opendoor does plan to grow an office in LA after also expanding an engineering office to Atlanta earlier this year.