Online agent Doorsteps – which claims to be worth £12m after only a year’s trading – has now raised £500,800 from 357 investors on the crowdfunding platform Crowdcube.
The business, which aimed to raise £400,000, has now announced that it is extending its bid for funds by a week – and last night, announced that it is in early talks with an un-named group as to a merger.
Doorsteps said: “If the merger does eventually proceed over the next month or two, it could mean a very significant increase in the number of UK wide visiting agents we have access to. Currently we have 15 and are hiring and training more; being paid per job and keeping our overheads as low as possible. If this merger goes ahead it could potentially mean that our number of agents we have access to will increase from circa 15 to over 190 overnight.
“The group also have access to some proprietary technology which Doorsteps.co.uk will be able to deploy immediately to increase the quality of service we can offer our customers; including automation of user journeys and enhancing the ’24 hour’ experience.
“The merger will have a dilutive effect on all shareholders. But the management believe the small dilutive effect will be far outweighed by the long-term benefit to Doorsteps.co.uk and help it to deliver our strategy of providing a fast, responsive and amazingly priced estate agency service across the UK.”
The message ends: “We plan to keep investors updated as regularly as possible, as our exciting discussions evolve.”
One person seemed unimpressed, however, saying: “This is an extraordinary time to drop this news.”
Doorsteps, which claims to be Britain’s 41st largest agency, says in its pitch for funds that it expects online agents to have 50% market share by 2020.
To be fair to Doorstep it’s always nice to have company on the way back down.
I did have to laugh at the 41st biggest agent. Does anyone know that I am in actual fact 220,000th in line to the throne?!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
“Does anyone know that I am in actual fact 220,000th in line to the throne?!”
BLIMEY! You’ve shot up the rankings, RealAgent – who the Hell died?
Gloucestershire?
;o)
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
I’m shocked and stunned you question me PeeBee after all we live in a world where it pretty much seems you can claim anything…
That said if 219,999 people suddenly go, I’m ready for the call.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
So, their 15 ‘sales’ staff pull in nearly £800,000 of revenue each year, which, on a fee of £99 means they sell 8000 properties each year? Because if I add all that up I get about £12m revenue.
BTW has anyone checked out one of the director’s at Companies House? They should.
as they say on multi level marketing “fake it til you make it”
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
A fool and their money are soon parted.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Ah, I see one of the fools is reading these pages…
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
For due diligence purposes, after doing some digging, I found that the parent company is Upside Capital Ltd and it was only incorporated on the 30th December 2016!
The main individual behind the company is Akshay Ruparelia, who, on the pitch on Crowd Cube, claims he has already built & sold two multi-million pound businesses.
He only has the one Directorship at Companies House at the current time.
https://beta.companieshouse.gov.uk/officers/CVr2EfPWr8jq_U58EPWrjR2mYgc/appointments
His date of birth is given as 1998, making him 19 years old.
The other director is Mahesh Kotecha and he also only has one directorship to his name.
They have obviously not filed any accounts and the valuation seems ridiculous to me.
I do believe intense due diligence is required in these instances as the platforms themselves may not undertake it. EYE has the story of another Crowd Cube pitch that was pulled because of lack of due diligence on the part of the platform:
http://www.propertyindustryeye.com/second-crowdfunding-pitch-for-property-tv-is-pulled/
I have a number of concerns with crowd funding which I have expressed here:
https://www.propertytribes.com/crowd-funding-too-easy-to-raise-money-t-127630176.html
https://www.propertytribes.com/-sorry-the-money-is-gone-crowdfunding-t-127627114.html
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
absolutely, Vanessa. And in companies house if you read some of the filing reports there is a strike off…
The whole business is total and utter nonsense with fairytale finances
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register