Zillow Group is not only a leading online real estate portal, but now the company can call itself an investor, too.
The Seattle-based online real estate powerhouse announced Wednesday that it is the lead investor in a $10 million Series A round for Hutch Interiors, a Los Angeles-based startup that has developed a home design mobile app.
This is Zillow’s first-ever investment in a startup. Zillow Group CEO Spencer Rascoff will join Hutch’s board of directors as a result of the funding.
Founded in 2015, Hutch lets users upload photos of different rooms in their home and provides them with “design filters,” or visualizations that use augmented reality to show how various styles might look with new items that can be purchased directly through the app.
Rascoff, who splits his time between Seattle and Los Angeles, said Hutch “has the potential to be transformative to the home shopping process.”
“A huge hurdle both renters and buyers face is envisioning themselves in a new home,” Rascoff said in a statement. “By investing in Hutch, we are enabling breakthrough innovation that enhances online home shopping and design experiences.”
It’s not clear if and how Hutch will integrate with Zillow’s platform, and vice versa. Update: Zillow said that this is “strictly a financing deal.” Hutch previously raised investment from Founders Fund, FF Angel, Tinder co-founder Sean Rad, music industry titan Scooter Braun, and others.
While this is Zillow’s first investment in a startup, it has acquired many companies over the past decade, including StreetEasy, HotPads, dotloop, and Trulia, which was its largest competitor. Zillow could follow the lead of other tech giants like Microsoft and Google, which have their own corporate venture capital arms.