Zillow Group is the sole investor in a $10 million series A round of funding for Hutch Interiors, a virtual interior design app. After years of acquisition-based growth, what made the real estate giant decide to invest in this startup, consumer-facing tech company?
According to a Zillow spokesperson, “we believe an investment in Hutch will better serve the company and its users as it continues to rapidly grow.” Zillow Group CEO Spencer Rascoff will join Hutch’s board of directors as part of the deal, bringing “extensive tech start-up and real estate experience to their existing leadership team.”
What is Hutch?
The virtual design app allows users to upload a photo of a room and apply design filters such as Malibu Luxe and Boho Goddess. This allows interior designers to change a living space with virtual design & quickly send to a buyer.
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What Does This Mean for Real Estate Professionals?
So, is it strictly a financial deal or is there something bigger in the works? A Hutch spokesperson says they plan to use the funds to “accelerate product development and growth of the company’s home design app and functionality.” But, you could see how the potential of a new partnership between the online real estate> database and home-design app could be a match made in heaven.
“For real estate professionals, Hutch offers a seamless way to virtually stage their listings on behalf of sellers, or, for buyers who may need help imagining their life in the home,” said Zillow Group spokeswoman Amanda Woolley.
Inman’s tech reviewer Craig C. Rowe wrote that he could “envision Hutch having a lot of use for agents who work with out-of-town second and luxury homebuyers who are used to a more catered approach from agents.”
“The app is very visual, juxtaposing item descriptions with high-res photography and full-screen virtual layouts. It does an excellent job of communicating to people how a room will not only look, but function, within its new decor,” Rowe said.
At this point, Zillow Group has no plans to add Hutch to its growing list of acquisitions, but you can see how it can benefit everyone involved in the years to come.