Debt Raise and Sale of Canadian Operation Nets U.S. Portal Operator Ojo Labs $200m

February 8, 2023

The U.S. real estate portal operator Ojo Labs has announced a deal to sell its Canadian operations to Royal Bank of Canada as well as a deal to raise debt from Vista Equity Partners.

The Royal Bank of Canada is the largest mortgage lender in its market and has been an investor in Ojo since 2018. The bank takes over Ojo Labs' Ojohome.ca portal and its 100 or Canadian employees as it looks to connect with Canadian house hunters further up the lead funnel.

The fresh capital will help the company compete with the likes of Zillow and Realtor.com in the U.S. housing market with Ojo's CEO John Berkowitz telling Insider that the combined deals are worth around $200.

"We put the company in an extremely healthy cash position, while others are having to retrench," Berkowitz told Insider. "It's in times like this that we accelerate our growth."

The injection of capital comes at a good time for Ojo with the U.S. housing market experiencing a downturn and the looming threat to its market share of a possible CoStar Group takeover deal for Realtor.com.

Austin, Texas-based Ojo operates the Movoto portal in its native market which it bought from Japanese real estate company Mitsui Fudosan for $62 million in June 2020. It is one of the few portals worldwide to employ a pure success-based business model with agents only paying up to 35% of their commission when they transact a lead.

February 8, 2023
Since March 2020 Edmund's job has been to read about, write about, collect data on, analyse and generally know about real estate marketplaces and the companies that run them. Before that he worked at the aggregator Mitula Group (which became Lifull Connect) for five years.

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

Cooperrocketacq
Rocket to Acquire Mr Cooper Mortgage Service for $9.4 Billion

Rocket Companies has announced a $9.4 billion all-share deal to acquire Mr. Cooper, the largest mortgage servicer in the United...

Read More
Scout24 German Houses 1
Scout24 Closes Another Data-Focused Acquisition

Germany-based marketplace operator Scout24 has continued its expansion into real estate data with the acquisition of Austrian proptech firm ImmoUnited....

Read More
People Roundup 28Mar 2
People Roundup: Aviv Group, Pisos.com, Kleinanzeigen, REA India, Anjuke

There have been several high profile C-suite moves in this week's People Roundup. We'll start in Europe...   Europe: Aviv...

Read More
Product Update 2025Mar28 3
Product and Services Roundup: Zoopla, ViewIt

This week's Product Roundup starts in the UK, where it's all about Zoopla...   UK: Zoopla's MyHome product is used...

Read More

Editor's Pick