Properly Secures $100 Million Investment to Revolutionize Canadian Real Estate

Canadian real estate technology innovator, Properly, has announced a significant milestone with the securing of a $100 million credit facility. This substantial investment is earmarked to fuel the company’s ambitious growth plans across Canada, signaling a new era for home buying and selling in the nation. The Toronto-based firm proudly secured this funding from two prominent U.S. finance powerhouses: Silicon Valley Bank and i80 Group, renowned for their strategic investments in high-growth technology ventures.

The Vision Behind Properly: A New Era for Canadian Home Transactions

The Canadian real estate industry, for all its dynamism, has long been recognized as ripe for technological disruption, particularly concerning the transactional aspects of buying and selling homes. Anshul Ruparell, co-founder and CEO of Properly, articulates this sentiment: “It’s no secret that Canada’s real estate industry is ripe for innovation.” He emphasizes that while advancements have been made in how people discover homes, the actual process of buying and selling has seen limited evolution beyond the emergence of discount players.

Properly, launched in 2018, was founded on a vision to address these systemic inefficiencies and transform the inherently stressful experience of real estate transactions into something data-driven, predictable, and remarkably stress-free. This transformative approach aims to empower Canadians, allowing them to confidently pursue their dream home the moment it becomes available, even if their current property remains unsold. This strategic partnership with leading financial institutions is poised to significantly accelerate Properly’s ability to realize this ambitious vision nationwide.

Redefining the Home Buying and Selling Experience

At the core of Properly’s innovation lies a sophisticated, tech-enabled service designed to fundamentally change the traditional real estate paradigm. Headquartered in Toronto, with strategic offices already established in Ottawa and Calgary, the company is rapidly expanding its footprint across the country, bringing its unique blend of technology and customer-centric service to more Canadian homeowners.

The “Buy First, Sell Later” Advantage

Properly directly addresses one of the most significant pain points for homeowners: the dilemma of buying a new home before selling their current one. This common scenario often leads to significant financial strain, including the burden of carrying two mortgages or incurring costly bridge loan interest. Properly’s unique model allows homeowners to secure the necessary financing to purchase their next home promptly, enabling them to act decisively when they find a property they love.

Once customers have seamlessly moved into their new residence, Properly takes on the responsibility of listing and managing the sale of their old home. This service liberates homeowners from the often-intrusive and time-consuming process of living through showings and open houses, a benefit that has become particularly invaluable and appreciated during the recent global pandemic. Customers also have the flexibility to work directly with Properly’s in-house team of experienced real estate agents, who provide expert guidance throughout both the purchase and sale processes, ensuring a smooth and guided experience from start to finish.

AI-Powered Valuations and the Guaranteed Offer

A cornerstone of Properly’s innovative service is its proprietary AI-powered home valuation model. This sophisticated algorithm leverages an extensive dataset of over 200,000 actual sold homes, combined with meticulously analyzed nearby comparable properties and detailed market analyses. The result is a highly accurate estimated selling price for a homeowner’s property, providing an unprecedented level of insight and predictability in the valuation process.

Building on this accurate valuation, Properly extends a unique “guaranteed backup offer” to its clients. This offer is not merely a hypothetical estimate; it is a firm commitment. A seller can present Properly’s guaranteed backup offer to any bank or financial institution, providing them with the necessary assurance to secure unconditional financing for their next home purchase. This crucial feature eliminates much of the financial uncertainty and risk typically associated with conditional offers. Furthermore, in the rare instance where a client’s home does not sell through conventional market channels, Properly stands ready to directly purchase the home from the client at this pre-agreed guaranteed backup offer price, providing an unparalleled safety net and peace of mind.

Transparent Costs, Unmatched Benefits

Properly’s commitment to transparency extends to its fee structure. The company’s service costs are designed to be competitive with, and in most cases, equivalent to working with a traditional real estate agent. However, Properly’s offering comes with substantial added financial and logistical benefits that far exceed conventional services. Beyond the core advantage of avoiding the daunting prospect of managing two mortgages simultaneously or incurring the expense of bridge loans, Properly actively supports its clients.

Upon a client’s move into their new home, Properly assists in making their existing property attractive for sale, potentially overseeing minor improvements or staging recommendations. Crucially, while the home is listed on the market, Properly takes on the responsibility of paying the existing home’s mortgage, further alleviating financial pressure on the homeowner. Once the sale of the home is successfully completed, the funds received are then efficiently utilized to pay off the existing mortgage and cover Properly’s transparent five-percent commission, streamlining the entire financial closure process.

A Landmark Investment: Fueling Growth and Innovation

The recent securing of a $100 million credit facility represents not just a financial injection, but a powerful validation of Properly’s business model and its significant potential. Anshul Ruparell underscores the profound implications of this funding: “This is a significant investment. I think it speaks highly to really two things. One is just the level of demand we’ve seen for this service since launching it has been really exciting and we needed this amount of capital to actually put us in a position to satisfy that demand and capture the customers that want to work with us.”

The Demand for Disruption in Canadian Real Estate

The overwhelming demand Properly has experienced since its inception highlights a profound yearning within the Canadian market for more efficient, transparent, and less stressful real estate solutions. This investment empowers Properly to scale its operations, enhance its technological infrastructure, and expand its team to meet this burgeoning customer base. It signifies a clear market endorsement for Properly’s innovative approach and its ability to deliver tangible value to homeowners.

Beyond meeting existing demand, Ruparell also sees the funding as a testament to the broader potential for innovation within Canadian real estate. He states, “Beyond that, it’s also a testament to the fact there is a lot of opportunity to drive forward innovation within Canadian real estate. This partnership with these major financial institutions is a really nice testament to that fact.” This investment is not merely about growth; it’s about pioneering new standards and setting the pace for technological advancement in a vital economic sector.

Strategic Partners: Silicon Valley Bank and i80 Group

The involvement of Silicon Valley Bank (SVB) and i80 Group underscores the strategic importance and disruptive potential of Properly. Silicon Valley Bank is a leading financial institution globally, known for its deep focus on serving technology and life science companies and their visionary investors. Their participation indicates a strong belief in Properly’s tech-driven model and its capacity for significant market impact.

Similarly, i80 Group is a specialty finance firm dedicated to supporting breakthrough companies in the fintech and proptech sectors. Marc Helwani, founder of i80 Group, expressed his enthusiasm, stating, “It was clear while getting to know the Properly team, the people and process would result in an unprecedented offering in the Canadian residential real estate market.” He further noted the significance of this collaboration: “While we work with many innovative companies in the U.S., this is our first partnership with a Canadian firm. Properly’s results speak for themselves, and we’re excited to be a part of their success.” This marks a pivotal moment, not just for Properly, but for the Canadian proptech landscape, drawing significant international attention and investment.

Nick Christian, Head of Specialty Finance at Silicon Valley Bank, echoed these sentiments, observing the success of similar models in the U.S. market. “We’ve seen technology-based real estate companies gain enormous market share in the U.S. by making the experience of buying and selling homes less stressful and more convenient,” says Christian. He firmly believes in the replicability and potential for even greater success in Canada: “We see the same extraordinary opportunity in Canada, and we’re proud to support Properly as it works to revolutionize the real estate transaction.”

The Future is Bright: National Expansion and Continued Innovation

With this significant capital infusion, Properly is poised for an accelerated trajectory of expansion and innovation. Anshul Ruparell outlines the company’s ambitious geographic goals: “Our intention and ambition is to be in every Canadian city over the next couple of years.” While the long-term vision is expansive, the immediate focus remains strategic: “But this year we’ll be focused on our existing markets.” This phased approach ensures sustainable growth, allowing Properly to solidify its presence and optimize its service delivery in current operational areas before venturing into new territories.

This national expansion will have a profound impact on Canadian homeowners, offering them a modern, streamlined, and stress-free alternative to traditional real estate transactions. By continuously enhancing its AI capabilities and refining its customer-centric processes, Properly is not just growing its business; it is actively shaping the future of real estate in Canada. The company remains committed to pushing the boundaries of what’s possible, ensuring that technology serves as a powerful enabler for a more predictable, transparent, and enjoyable home buying and selling journey for all Canadians.