REUTERS: Real estate brokerage firm Compass Inc, backed by SoftBank Group Corp, on Monday made its filing for an initial public offering public and revealed a 56per cent surge in revenue helped by a strong housing market.
The COVID-19 pandemic has fueled a shift to digitization of the real estate market as more people, encouraged by low interest rates, prefer to buy and sell homes online.
Compass was founded in 2012 by Ori Allon, who previously worked as the director of engineering at Twitter, and Robert Reffkin, who worked at Goldman Sachs earlier. The firm covers 46 metropolitan statistical areas in the United States and serves over 19,000 agents.
The company was valued at US$6.4 billion after its US$370 million funding round in 2019. Besides SoftBank, its other investors include Goldman Sachs, Canada Pension Plan Investment Board and Dragoneer Investment Group, according to Compass' website.
Compass has raised US$1.5 billion so far.
Kenneth Chenault, the former chief executive officer of American Express, and Marc Benioff, the CEO of Salesforce.com, are also investors in Compass.
The New York-based startup said its revenue rose to US$3.72 billion for the year ended Dec. 31 from US$2.39 billion a year earlier, while net loss narrowed to US$270.2 million from US$388 million a year ago. (https://bit.ly/3r9aY7F)
Compass had confidentially filed to go public in January.
Another real estate brokerage company Opendoor Technologies, backed by SoftBank, went public through a blank-check firm last year.
Goldman Sachs, Morgan Stanley and Barclays are the underwriters for Compass' offering.
(Reporting by Niket Nishant in Bengaluru; Editing by Amy Caren Daniel and Shinjini Ganguli)