Ribbon, a New York City-headquartered fintech aimed at homebuyers, announced it has raised $330 million in equity and debt financing that will enable its product development and the expansion into new markets.
The company closed a $30 million Series B round of funding led by Greylock and secured a debt facility with Goldman Sachs that enables financing capacity to $300 million upon closing and may be increased by an additional $220 million upon the satisfaction of certain conditions. All previous investors, including Bain Capital Ventures, NFX and NYCA also participated in the Series B round, as did new investor Thomvest Ventures.
Ribbon provides homebuyers with an all-cash, guaranteed-to-close "Ribbon Offer" to present to sellers. Buyers are pre-approved for a purchase and home valuations are completed within 24 hours. If a homebuyer can't close with a mortgage on time, Ribbon will buy and reserve the home on behalf of the homebuyer and lease it to them for up to six months. The company said that buyers saved an average of $10,000 in cash discounts and received a 100 percent on-time closing.
Ribbon currently operates in eight markets across four states: Charlotte, Raleigh, Nashville, Atlanta, Charleston, Greenville, Memphis and Knoxville. It is planning to expand into 20 markets across 10 states by the end of 2020.
"Homebuyers, home sellers, real estate agents and lenders are all enthusiastically working with Ribbon to streamline the real estate transaction and deliver a frictionless buying and selling experience," said Ribbon CEO Shaival Shah. "We're grateful for the confidence our investors have shown in our business model with this round of funding, and excited about the opportunity to bring our products and services into new markets and design new product solutions. We are expanding our platform to help even more families who have homes to buy and sell and families who are buying their first home."
