Casavo, the Italian former iBuyer, has raised $20 million in a funding round led by current investor UniCredit as the firm seeks to put its previous model squarely in the past.
Other investors include existing shareholders Exor NV, Project A Ventures, Neva SGR and 360 Capital.
Casavo started as an iBuyer but has since opted to pivot to a mortgage brokerage and real estate marketplace amid headwinds in Europe and beyond.
The firm now operates as a hybrid marketplace model, starting with its proprietary instant valuation tool (covering the whole of Italy) and progressing to physical and digital services covering the real estate sales process (in limited cities including Milan, Rome, Torino and Florance).
As part of its new model, Casavo charges a 1% fee, undercutting the typical 2-5% charged by traditional agents in Italy.
CEO Georgio Tinacci commented:
“We have successfully completed the transition to a marketplace model, aiming for profitability by 2025.
“Despite the significant challenges linked to the increase in interest rates, the resilience of the team and the ability to evolve rapidly have allowed us to continue on the path to profitability. We remain confident of achieving this goal by 2025.”
Interestingly, Casavo’s close relationship with UniCredit appears to be strengthening.
The pan-European commercial bank entered a long-term strategic partnership with the then-iBuyer as part of Casavo’s €400 million Series D round in 2022 and then injected another €5 million into Casavo in May 2024.
Unicredit also operates a brokerage, UniCredit SubitoCasa, which uses Casavo’s valuation algorithm on its platform.
SubitoCasa CEO, Fabio Mucci, said:
“We’re convinced that to be innovative you need to use technology as a bridge between the digital and physical worlds.”
Casavo says it will use its cash injection to expand its marketplace offering in Italy, but competition will be tough given the presence of big-name portals including Immobiliare.it, Idealista, Wikicasa and Casa.it.
Taking market share provides a new challenge for the new-look model after some tough years.
