New-breed estate agent Nested has raised £5m to expand operations – with investors including German media giant Axel Springer, which also has a stake in Purplebricks.
Nested has also revealed it has been using the cover of COVID-19 to test a new growth model, focused on creating a new hyper-local estate agency service.
CEO Matt Robinson, who was co-founder of GoCardless, said the £5m investment would bring “the vast industry experience and resources of Axel Springer to the board, in advance of Nested expanding the footprint of our modern estate agent offering in 2021”.
Axel Springer is a prominent global investor in the new breed of estate agents, and has taken the holding through its subsidiary Aviv Group. Existing Nested shareholders Balderton and Northzone Capital also re-upped their investment. The move follows an earlier fundraise of £20m.
Nested launched its hyper-local scheme in five areas of London in 2020, using agents with in-depth knowledge of their area, and has quickly gained up to 15% market share.
With another handful of areas launching in Q1, the company is planning to launch an additional 30 areas over the next 18 months, as well as moving outside London for the first time.
‘Truly modern agent’
Robinson said: “The average home-selling experience is poor and it’s not at all clear what your agent is even doing. There are some great agents out there, however, the tools traditional agents have and the services they can offer to customers are antiquated.
“That’s why we’ve built a truly modern estate agent where we hire the best local agents out of traditional agency and support them with unrivalled technology and unique features like our buying agent, chain management and advance.”
He said Nested had been rated as ‘Excellent’ on Trustpilot and recently became the only Mumsnet-rated estate agent in the UK.
Nested recently released updates to its mobile app which give vendors instant access to every aspect of their sale, from viewing feedback and scheduled viewings to even showing what actions an agent has taken to generate interest, and how many times they have chased up specific enquiries.
Dr Marc Rustige of Axel Springer said: “We are firm believers in the opportunity to modernise and digitise estate agency services.
“From our global market scan we could see that Nested was building out a powerful offering that combines a superb experience for home sellers and buyers. We are already seeing the success of their approach with strong growth in local market share across London.”