Houzz raising $400 million at $4 billion valuation
Home improvement platform Houzz continues to grow, and is in the process of raising another huge round of funding. The company confirms that it is raising $400 million in new financing, at a valuation that multiple reports peg at around $4 billion.
Founded in 2009, Houzz provides a platform to help users renovate and remodel their homes, as well as providing tools for finding furniture and fixtures they might want to purchase. The company has users all over the world, in markets that include the U.S., U.K., Australia, France, Germany, Russia, Japan, Italy, Spain, Sweden and Denmark.
It makes money mostly through paid listings for local home professionals and service providers, but has been delving more deeply into direct commerce through the introduction of deep learning and AR products it’s added to its website and mobile apps.
Last fall it introduced a deep learning tool that analyzes home photos added to the site and enables users to search for and purchase comparable products directly from the page. It also added an AR feature to its mobile app that enables users to preview what new pieces of furniture might look like in a certain place in their home.
The newest funding round, which Recode reported is being led by Iconiq, comes on top of more than $200 million that Houzz had raised from investors that include Sequoia, New Enterprise Associates, GGV Capital and others.