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Igglo Inks $15.7M For Online Real Estate Platform

Online real estate start-up Igglo Oy has raised EUR12.5 million ($15.7 million) in a first venture round led by Benchmark Capital Europe.

Benchmark invested the lion's share of the Series A round, pouring EUR10 million into Igglo, to help the company expand its service across Europe, said Benchmark General Partner Johan Brenner. Igglo, which launched in Finland about eight months ago, also raised money from Taivas Group and undisclosed individuals.

Igglo consumer service combines user-generated content with traditional real estate data and other information. Using the Web site, potential buyers can scout out neighborhoods and make unsolicited offers for any home. Sellers can also advertise their homes on the Web site for potential offers. Igglo acts as a broker, charging fees to arrange deals between owners, buyers or renters. Brenner said that Igglo competes by charging less than half the cost of established brokers and realtors.

The financing round, which closed yesterday, is the second partnership between Benchmark and Igglo's founder Jussi Nurmio, who co-founded the virtual world Habbo Hotel. Sulake Corp., the company behind Habbo Hotel, has raised more than $35 million from Benchmark, 3i Group PLC, Taivas Group and Finnish telecommunications company Elisa Oyj.