Proptech platform Coposit supersizes its oversubscribed capital raise to $14m

Proptech startup Coposit has supersized a planned $10 million capital raise to $14 million as investors swamped the seed round that will be used to accelerate its expansion plans in 2025.

The Sydney-based company, which is co-founded by brothers Chris and Dan Ferris, has been quietly working with developers since 2021 delivering a service that enables off-the-plan property buyers to secure a home via a $10,000 deposit and allowing the balance of the deposit to be paid off in stages while the project is being built.

The oversubscribed seed round announced today, the first capital raise by the company, secured the backing of an offshore investment firm as well as local industry groups.

Chris Ferris, the Coposit CEO, describes the capital raising as a “significant milestone” for the company after three years of bootstrapped growth which has seen a milestone 100 projects onboarded along Australia's eastern seaboard with an end value of $9 billion.

"The past three years have been our proving grounds, and during that time our strategy was focused on organic growth and engagement with industry," says Ferris.

"The market's rapid acceptance of Coposit has solidified our position as a key player in the Australian real estate sector, providing a simple and secure deposit model for buying off the plan that benefits buyers, developers and lenders.

"With our first investment round oversubscribed by 40 per cent, we are in a strong financial position to accelerate our growth and expansion plans for 2025 and beyond.

Advertisement "This growth includes investing in existing and new tech products and B2C marketing to reach everyday Australians who are ultimately the beneficiaries of this solution and empower them to achieve their property goals."

In May last year, Coposit made big strides in its business plans after striking an agreement with the Commonwealth Bank of Australia (ASX: CBA) to accept pre-sales secured through Coposit in residential developments funded by the bank. The startup has since secured agreements with other banks and non-bank lenders to accept Coposit pre-sales.

Last month, the Gold Coast's largest newest masterplanned community, Lewis Land’s Harbour Shores, also threw its support behind Coposit.

The partnership with Harbour Shores is the platform's largest project on the Gold Coast and comes on the heels of agreements already struck with the likes of Frasers Property, Third.i and Billbergia.

"Developers benefit from Coposit by securing the pre-sales needed to get their projects under way sooner, which is critical in helping the industry increase supply; it's a win-win solution," says Ferris.

"We're looking forward to announcing further strategic partnerships in the coming months."

Coposit enables qualified home buyers to purchase off-the-plan properties with an initial minimum deposit of $10,000 and pay off the balance of the required deposit during construction via weekly, interest-free payments. Settlement is finalised through traditional financing channels on completion.

Home buyers are not charged any fees or commissions, but developers pay a one-off fee on sales facilitated via Coposit.

Source: Business News Australia