Tomo Secures Big Bucks in New Funding Round

July 6, 2021

In one of the biggest funding rounds in proptech history, home buying fintech platform, Tomo, has acquired $70 million in capital as part of a seed round. 

Tomo will use this capital to further its commitment to bringing buyers a better way to purchase a home. The company is going to focus on regions where real estate prices and competition are making buying a new home an extreme challenge for first-time homeowners and millennials. 

Tomo CEO and Co-founder Greg Schwartz stated:

“In today’s housing market, buying is not an enjoyable experience; it has become competitive, stressful, and confusing, and too many people are coming away from it empty-handed. As single-family homes become commoditized by investors, the American dream is moving further and further out of reach. We are going to change that. We will work only with buyers, we won’t do refinancings, and we will close on-time, every time. No one else in this space can say that and mean it.”

Tomo’s proprietary technology services support pre-approvals within hours instead of consumers waiting business days for the same services. Tomo promises on-time closings which give buyers confidence and a stronger position in the market. 

The company also has a brokerage arm called Tomo Brokerage, which connects buyers with leading local agents who are more familiar with the markets they work in. This allows for buyers to feel confident that they are getting the best service possible. Working on building this network across its markets, Tomo is working with Tom Ferry, a leading coaching and training firm within the real estate industry, in order to further expand its brokerage services. 

The company is headed by ex-Zillow execs Greg Schwartz and Carey Armstrong who started the company just eight months ago, adding to the growing number of companies started by former Zillow big shots. Zillow has a knack for its former employees spinning off to start their own endeavors in numerous ways. Pacaso, another real estate startup (but focused on second-home buyers), was started by Zillow co-founder and ex-CEO Spencer Rascoff

Zillow has enough fingers in Tomo’s pie as well, not only was it started by former Zillow executives as well but one of the participants in this recent funding round is headed by the founder of Trulia, one of Zillow’s rental channels, Pete Flint. The round itself was led by Ribbit Capital, with participation from DST Global, NFX, and Zigg Capital. 

Last October, Tomo raised $40 million, adding to its treasure trove of capital that will go towards its goal to help first-time buyers get a leg up on the competition. 

July 6, 2021
Victoria has been writing about property portals and marketplace sites for Online Marketplaces for over 3 years. She is also our resident artist and is responsible for all of the infographic content on the site.

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