Interest rates and inflation are making it difficult for startup companies that cater to homebuyers.
Reali announced that it will be shutting down and laying off most of its employees on September 9.
The decision to wind down operations was made due to the challenging real estate and financial market conditions.
He said that Reali was one of the first companies to offer programs to homeowners. The consumer was the main beneficiary in every transaction.
Reali was founded in Israel in 2016 by Ami Avrahami and Amit Haller, who were frustrated with the quality of service they received as real estate investors.
They wanted to make the real estate buying and selling process more transparent and professional.
The startup claimed that customers could buy and sell in one transaction, eliminate resale contingencies, and pay two mortgages at the same time.
The company has raised more than $300 million in debt and equity. A $100 million Series B was raised in August of 2021. According to CTECH, the company had 180 employees at the time of the raise. Reali had 140 employees, according to the publication.
A small team of Reali employees will continue to support active real estate transactions through the end of the year.
The company said that it is in talks with companies that are interested in buying certain parts of its business.
Veev, a r eal estate developer turned tech-enabled homebuilder, raised $400 million in a Series D round in March, catapulting it to "unicorn" status.
Reali is not the only challenge. Homeward laid off 20% of its workers. Better.com has laid off many people this year.
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