REX Raises $40 Million to Disrupt the Real Estate Buying and Selling Process

REX, a home buying startup that uses big data and artificial intelligence, announced this week that it has raised $40 million in a Series C funding round.

The company, founded in 2014 in the Los Angeles area, moved to Austin a year ago. To date, REX has raised $110.5 million in total funding.

REX plans to use the additional funding to complete its nationwide expansion and to “broaden the availability of mortgage, insurance, escrow and other services it offers,” according to a

news release.

REX now operates in 23 cities in 17 states. The company uses data science, machine learning and artificial intelligence to price homes and then target them to qualified buyers through Zillow, Google, Facebook, Trulia and other sites. It also only charges a total commission of 2 percent on sales, compared to the standard 6 percent for most real estate deals.

“REX is leading the transformation of an industry that remains stuck in the past and doesn’t provide the value for money that consumers expect,” REX board memberScott McNealy, co-founder and former CEO of Sun Microsystems, said in a news statement. “It’s shown impressive progress in building out its technology and services this year and we’re pleased with the way consumers are responding.”

“REX offers buyers and sellers a less expensive, more effective and far easier way to conduct the most important transaction of their lives,” REX co-founder and PresidentLynley Sides said in a news release. “In contrast to the outrageously high charges levied by the MLS realtor cartel, REX helps families preserve their hard-earned savings.”

Since launching in late 2015, REX has represented homes cumulatively valued at more than $2 billion. And it says it has saved customers more than $16 million in fees.

And for every 50 homes it sells, REX builds one new home for a family in need.

REX’s investors include McNealy, Griffin,Dick Schulze, founder of Best Buy,Gordon Segal, founder of Crate and Barrel,Amit Singhal, former SVP of search at Google,Diana Nelson, chair of Carlson,Jack Greenberg, former CEO of McDonald’s,Jim Perry, co-founder of Madison Dearborn Partners, andMuneer Satter, chairman of Satter Investment Management.