Sumutasu, Japan’s sole iBuyer, announced today that it has raised a total of $10 million in Series B funding. The stated amount includes $1.6 million of debt secured from the Japan Finance Corporation.
The funding round was co-led by existing investor World Innovation Lab (WiL) and new investor Mobile Internet Capital. Several other new investors have joined the round, including Mercuria Investment, CARTA VENTURES, Kiraboshi Capital, and other investors. With this funding round, the total funds raised have reached $16 million.
While typical western countries have a more competitive iBuyer market (a direct online real estate purchase platform), Sumutasu is Japan's sole iBuyer. Sumutasu has been addressing the pain points of homeowners since 2018 and has received over 10,000 home appraisal requests to date, with the total monetary value of appraisals approaching $3 billion.
Sumutasu’s ability to digitally assess a home’s fair value in as little as one hour empowers homeowners who have historically faced uncertain selling prices riddled with brokerage fees and an average selling time of 8 months. Factors like these have led to a low percentage of existing homes in circulation in Japan – around 15% compared to the 80% typically seen in countries like the United States. The government has recognized the severity of the issues associated with the existing home market and indicated that it will move towards a stock-oriented housing policy that will likely shift demand from new construction to existing homes over time.
Sumutasu’s founding team brings a robust set of experiences that provide a strong understanding of the real estate market and customer needs. CEO and co-founder Takahiro Sumi is a leader in digital marketing in real estate sales in Japan and was selected for the Forbes 30 under 30 Asia list in 2019. The COO and co-founder, Tomoya Ito has a strong knowledge of optimizing products for the Japanese market based on his work at SUUMO, the largest real estate media company in Japan, and product development experience at OYO LIFE - India’s unicorn company.
Sumutasu plans to use the raised funds to expand to adjacent areas such as mortgage brokering services and broaden its geographic coverage. The company aims to become the No.1 player in Japan’s direct real estate selling market by 2028.
Headquartered in Tokyo, Sumutasu provides a fully digital and direct purchase real estate platform for homeowners. By using an online valuation algorithm and purchasing properties directly, Sumutasu can make an offer on a home in as little as one hour and conclude the purchasing process in as little as two days. Sumutasu’s platform also enables users to buy renovated condominiums without paying any brokerage fees.