This real estate agent matching startup raised $5.5 million and is now mulling an IPO

Photo by Nick Laham/Getty Images

Property agent matching service LocalAgentFinder has secured a $5.5 million capital raising round and is now considering an initial public offering.

The company did not disclose who was behind the latest investment round, which closed in March, but said it has appointed Wilsons Advisory to consider its next move to facilitate its growth.

LocalAgentFinder (LAF) claims to have signed more than 65,000 property owners in the year to April for its service, which pits agents against each other for the right to sell a house. The site does not charge the seller but nabs a 0.375% service fee from the agent upon a successful sale.

While the company’s preference is to float, the board indicated it “may also consider proposals from strategic investors”.

“LAF has invested significantly in its technology platform and its people and anticipates that it will benefit from this investment going forward,” said LocalAgentFinder chairperson Rupert Greenhough.

The board itself will expand, with the company in “advanced discussions” with candidates for new non-executive directors.

LocalAgentFinder recruited former iSelect chief Mat McCann last September as its CEO to prepare for a possible IPO this year. He had taken iSelect to a float in 2013.

LocalAgentFinder, founded in 2007, is one of a number of agent-matching services in the Australian startup scene. Rival OpenAgent made headlines last August for its $12 million raise led by Westpac’s Reinventure, Breakthrough Labs and Singapore’s Qualgro.

Another competitor, RateMyAgent, clinched $5 million last April thanks to a contribution from Catch of the Day’s Gabby Leibovich.

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