Flyhomes has sold its consumer home search technology and related assets to The Real Brokerage, marking a major shift for the Seattle-based real estate startup as it focuses more narrowly on mortgage lending.
Real, a publicly traded company based in Miami, announced Tuesday that it acquired Flyhomes’ AI-powered home search portal and made a strategic equity investment to support Flyhomes’ transformation into a wholesale mortgage lender.
In a press release, Flyhomes CEO and co-founder Tushar Garg said the company made a strategic decision to offload the home search tech and team in order to focus on expanding its signature “Buy Before You Sell” financial offering via a wholesale mortgage channel.
Specific terms of the deal were not disclosed. Real said it funded the acquisition and investment with cash, and does not expect a material impact on its financial results.
Flyhomes has raised around $200 million in equity funding since launching in 2016. The company gained attention with a product that gave buyers upfront funding to make more competitive offers, and created the “Buy Before You Sell” initiative in its early days as a rising star in Seattle’s startup scene.
But the real estate company later went through multiple rounds of layoffs amid rising interest rates and shifting housing demand.
As recently as last year, Flyhomes was still investing in consumer home search tools when it acquired technology from ZeroDown, a San Francisco startup backed by OpenAI CEO Sam Altman that developed AI-fueled software for prospective homebuyers.
Flyhomes declined to share an updated headcount. LinkedIn data shows more than 200 employees, including a large India-based workforce.
Founded in 2014, Real went public in 2021. The acquisition bolsters its technology stack as it aims to simplify the home-buying process with AI-driven tools for both agents and consumers.
The company will also offer Flyhomes’ financing solutions through its One Real Mortgage subsidiary, giving Real’s network of agents access to more flexible mortgage products.
Source: Geek Wire
