Houzz, the fast-growing home-remodeling site, today announced that it has raised a $165 million Series D round led by Sequoia Capital, one of its early backers. Existing investors Oren Zeev, New Enterprise Associates, GGV Capital and Kleiner Perkins Caufield & Byers also participated in this massive round, as well as new investors DST Global and T. Rowe Price.
As Houzz co-founder and CEO Adi Tatarko told me earlier this week, the plan is to use this new injection of funding to accelerate the company’s global expansion plans. Houzz, which launched in 2009, already has already opened offices in Berlin, London and — most recently — Sydney. “Houzz is really meant to be a global platform,” Tatarko told me. More than a third of the company’s now 25 million monthly unique users already come from outside the U.S., she told me.
As part of today’s news, the company also announced the beta launch of its newest revenue channel, the Houzz Marketplace, which will allow users to directly buy some of the products they see when they browse the site. The service currently features over one million products from a large variety of sellers. As Tatarko told me, many businesses actually came to the company to participate in this — and some of them didn’t even have an online presence before this.
“But most importantly, we did this because our users really wanted this,” she noted. “They wanted to be able to complete everything on Houzz.” This is a marketplace, so while Houzz handles the payment in the background, fulfillment and customer service are handled by the sellers.
In addition, the company is also using this moment to announce its redesign, which already started rolling out to some users over the last few days. The idea here is to simplify the experience and create a better flow between the three parts of the site: inspiration, finding pros and the marketplace. The redesign also features improved search with better filters, as well as new ways for its users — and especially professionals — to personalize their profiles.
As for the funding round, Tatarko noted that she sees it as a huge vote of confidence in the company. “They saw that Houzz became the ultimate leader in its industry in the U.S. and wanted to support our initiative to bring it to the rest of the world, too,” she said.
Sequoia partner and Houzz board member Alfred Lin echoed this sentiment. “It’s rare for a company to be able to achieve this level of hyper-growth and establish such a substantial business with three different revenue streams,” he said. “We’re thrilled to invest again and to continue to help the team disrupt a massive global industry.”
The company didn’t disclose its valuation, but according to documents that disclosed at least some of this round earlier this year, the company was raising at a post-money valuation of over $2.3 billion.