A ‘houzzing’ bubble? Home remodeling site Houzz raising $150M at $2.3B valuation

houzz-app1Houzz may be on the cusp of a big remodeling project of its own.

The Palo Alto, Calif-based startup, which provides home owners with tips on remodeling kitchens, baths, decks and more, has reportedly snagged $150 million in fresh funding. VCExperts uncovered the series D round, which reportedly comes in at a jaw-dropping $2.3 billion valuation, according to TechCrunch.

Houzz — backed by NEA, GGV Capital and Sequoia Capital — is growing fast. The company reported more than 16 million monthly unique visitors in January, with about 35 percent of that audience coming from outside the U.S.

It last raised $35 million in series C financing in January 2013. The company isn’t commenting on the most recent funding round, discovered in Delaware corporate records. Re/Code reports that the deal has not closed, which means the amount may go even higher.

Houzz competes with Seattle-based Porch, as well as Zillow, which in early 2013 launched the home decorating site Zillow Digs.

houzz-teamAt the time of the launch, a Houzz spokesperson called Zillow Digs a “complete knock off.”

Houzz is still far smaller than Zillow in terms of overall traffic, and market value. Zillow was valued at $4.7 billion at the close of trading today.

Nonetheless, $150 million in fresh capital is nothing to sneeze at, especially given that Houzz is so highly regarded on mobile.

The money also comes at a time when massive amounts of money are flowing into the online real estate arena, something I pointed out in a column last month. See: Is online real estate still broken? New upstarts look to carve paths against established giants.

  • http://www.extendedresults.com/ Patrick Husting

    Wow. First I have EVER heard of them… Feels like a bubble… Smells like a bubble… :o)

    • I kid!

      at over 20M unique visitors last month, if you haven’t heard of them it is more likely you’re the one living in a bubble :)

  • Kary

    It’s not just housing sites–look at Uber.

  • Kevin McCarthy

    I think most of their traffic is from SEO. I’ve landed several times on pages like “cool infinity edge bathtubs” and the like. Who knows if that is sustainable.