Purplebricks sets sights on NYC expansion after $177M investment Axel Springer’s funds gives it an 11.5 percent equity stake

Eric Eckardt (Credit: LinkedIn)

Purplebricks, a London-based discount brokerage, said Monday it received an $177 million equity investment from German media group Axel Springer SE to accelerate its expansion to New York.

The company, which launched in 2014, said it would earmark $71 million of the cash infusion to ramp up operations in the United States. Purplebricks now plans to launch in New York next month, instead of in July.

In a statement, Eric Eckardt, Purplebricks U.S. CEO, said the $71 million will go toward ex上海千花网

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panded advertising as well as strategic hires that will bolster our growth.

The deal — which gives Axel Springer an 11.5 percent stake in Purplebricks — reflects investor interest in lower-cost broke上海龙凤论坛

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rage options. Last year, Seattle-based Redfin went public in a highly-anticipated IPO. Redfin s 2017 revenue soared 38 percent to $370 million in 2017, but it lost $15 million.

Purplebricks debuted in Los Angeles six months ago, on the heels of a $60 million investment from investor上海贵族宝贝

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s. The publicly-traded co上海贵族宝贝交流区

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mpany has a market cap of around $1.08 billion, compared to$341.85 million when it went public in 2015.

Despite its rapid growth, Purplebricks has been stung by controversy aft上海千花网龙凤论坛

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er the investment bank Jeffries questioned its sales figures. It was also slapped on the wrist by an advertising watchdog in Australia over misleading ads promising low, fixed fees.

Tags: redfin, Residential Real Estate
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