Propy, a real estate technology company, tapped the private credit market for the first time, securing $100 million to support the startup's acquisition strategy.
Metropolitan Partners Group led a credit facility to the company, which uses artificial intelligence to expedite the real estate closing process.
Propy has been pursuing a roll-up of title and escrow businesses. It acquired Alabama-based Delta South Title in November, and is in the process of acquiring its third business based in Florida.
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"Traditional equity capital is very expensive and very dilutive," Natalia Karayaneva, Propy's founder and chief executive officer, said in an interview. "When we are acquiring cash flow businesses, debt is a more appropriate financing source," she said.
Propy has raised more than $30 million in equity financing, including from venture capitalist Tim Draper, and expects to raise more in the future.
Metropolitan Partners provides growth capital for the lower-middle market. Last year, the firm hired Michael Egan from Atalaya Capital Management to be its chief data and technology officer.
"We've been working with three or four experts at Metropolitan to help with our integrations and consolidation," Karayaneva said. "They really understand AI and technology, and they've been a great resource to help source target companies."
