Zefir Raises €11M to Accelerate Real Estate Transactions

PropTech company Zefir has successfully raised €11 million in its latest funding round.

Buying or selling a home can be an overwhelming experience, particularly in France, where the real estate market is highly fragmented, comprising over 40,000 agencies.

Since 2022, economic challenges have made selling homes more difficult, with average sale times extending to over 110 days. Additionally, the number of real estate agencies facing bankruptcy in France surged by 117% in 2023.

Established in 2020, Zefir’s primary goal is to expedite real estate transactions, starting with instant home purchases.

In January 2023, Zefir introduced a “Collective Selling” strategy to streamline the fragmented real estate market. This innovative model employs technology to foster collaboration among agencies, facilitating quicker connections between sellers and buyers. By consolidating property listings and customer databases from thousands of agencies onto a unified platform and utilizing AI for process optimization, Zefir has significantly reduced the time it takes to match buyers with sellers, making transactions more efficient.

Zefir and its partners have achieved remarkable results, cutting down home sale transactions to just 58 days, which is half the market standard in France. This acceleration benefits both sellers and buyers, allowing them to progress swiftly in their endeavors without incurring additional costs compared to traditional agency sales.

From the perspective of real estate agents, this model enables them to close more deals, resulting in an average annual revenue increase of up to €28,000.

Remy Fabre, Co-founder, and CEO of Zefir, pointed out that while rising interest rates contribute to the real estate market slowdown, the traditional individualistic approach has also played a significant role in hindering progress for sellers, buyers, and agents alike.

Through the Collective Selling model, Zefir has experienced rapid growth, surpassing €200 million in transaction value within 12 months and demonstrating a clear path to profitability.

To ensure continued success, Zefir has decided to focus its efforts on developing the Collective Selling model exclusively, discontinuing its instant-buying option. Notable investors such as Sequoia, Heartcore, Stride, Third Kind Venture, and Zigg Capital have shown confidence in Zefir’s vision and contributed to its recent funding round.

Elizabeth Chrystal from Zigg Capital emphasized that Zefir’s innovative approach is reshaping the European real estate landscape through cooperation and technology, marking a significant shift in a traditionally competitive market.

George Robson from Sequoia Capital praised Zefir’s adaptability and strategic pivot, positioning the company for substantial growth in 2024 and beyond.

With the new funding, Zefir plans to enhance its product offerings and AI capabilities, aiming to triple its transaction value in 2024 and expand its network of real estate professionals.

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