News: Stoa layoff: Proptech startup slashes workforce after $300 million raise

Strategic HR

Stoa layoff: Proptech startup slashes workforce after $300 million raise

The company implemented a significant 80% reduction in its workforce, the company revealed that they currently have several potential deals under consideration.
Stoa layoff: Proptech startup slashes workforce after $300 million raise

Stoa, the proptech startup, has experienced a drastic 80% reduction in its workforce, downsizing from around 100 employees to merely 20. This move comes as a response to the impact of rising inflation rates and an economic crisis, which have dramatically altered the real estate market in the US, where Stoa operates. 

The challenging conditions have dealt a significant blow to the startup's business model.

Since its inception in 2017, Stoa has successfully raised a total of $300 million, comprising $100 million in equity and $200 million in debt. Remarkably, nearly the entire sum was secured within a span of less than a year, specifically between November 2021 and August 2022.

Recently, the company secured an additional undisclosed investment and stated that it currently has multiple options under consideration.

“In response to the changes in the real estate market, the company is undergoing a reorganisation and has reduced its workforce to about 20 employees. Currently, there are several deals on the table that the company is considering,” the company told CTech in a statement.

Founded by Israelis Or Agassi (CEO), Tom Sella, and Jonathan Saragossi (who has since departed from the company), the Arizona-based company came into existence.

Stoa introduced its iBuyer software platform, FlipOS, with the aim of empowering real estate investors to expedite the process of purchasing, renovating, and selling homes in a more efficient manner. The platform provided investors with access to low-rate lending options and a guaranteed post-renovation purchase offer, ensuring a five-day close.

Among the key investors in the company is Oren Zeev, and it is further backed by BRM and Fintech Acquisition Corp. (FTAC).

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Topics: Strategic HR, #Layoffs, #HRTech, #HRCommunity

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