Fueling the current trend of digitizing the home-remodeling experience, Houzz has raised an impressive $165 million in a fourth round of capital.
Investors in the round include Sequoia with participation from existing investors Oren Zeev, New Enterprise Associates, GGV Capital and Kleiner Perkins Caufield & Byers, as well as new participants DST Global and T. Rowe Price.
The Palo Alto, Calif.-based company, which claims to have more than 25 million monthly unique users and four million photos uploaded by remodeling and design professionals, said it will use the cash for international expansion and to invest in its core platform that connects homeowners to remodeling and design professionals.
In all, Houzz has raised more than $200 million.
Today, the company also announced the beta launch of the Houzz Marketplace, which sells home products.
For instance in the screenshot above, you can see how customers are being offered patio furniture when viewing the outside of a home. (While the photo shows a patio, the products seem a little misguided because viewers would be visiting that photo to get inspired about family room and bedroom additions).
Recently, investors are funneling a ton of cash into the home remodeling segment. Last month, Seattle-based Porch disclosed it has raised $33 million to date and Pro.com said its latest round totaled $14 million. A third competitor is Zillow Digs, a site and iPad app operated by the publicly held company, which Houzz has called a “complete knock off.”
In case you are curious how to pronounce the company’s name, the “Hou” in Houzz is pronounced “How.” Houzz is a combination of the words “House” and “Buzz.”
Houzz has already launched in some international markets, including the UK and Australia. This fall, it will launch in France and Germany.
In June, the startup was reportedly looking to snag $150 million in funding for this round, but obviously it was able to raise even more. Houzz employs 300 employees, and although the company didn’t disclose its valuation, TechCrunch points out that the company was raising money at a post-money valuation of over $2.3 billion, according to publicly available documents.