Digital real estate platform Realpha will acquire Instamortgage, adding the direct lender to its growing home finance network and furthering goals to build a one-stop artificial intelligence-backed homebuying experience. 

The move by the Dublin, Ohio-based technology firm, which has origins as a home purchase and sales platform, expands the company into lending after two previous mergers with mortgage brokerages. The deal grows Realpha's lending footprint throughout the U.S. and will also allow it to better serve borrowers with aligned processes across its mortgage businesses, the company said. 

"Following the completion of the acquisition, Instamortgage will bring direct lending infrastructure and multistate licensing that fits our platform strategy. When combined with our existing mortgage brokerage, it will position us to further reduce friction across handoffs and deliver a more coordinated experience, while operating with the discipline this industry demands," said Realpha CEO Mike Logozzo in a press release. 

Founded in 2008 by CEO Shashank Shekhar, Instamortgage is licensed to serve clients in 32 states from its home base in San Jose, California. Previously known as Arcus Lending, the lender rebranded as Instamortgage in 2021. 

"Realpha's vision for an integrated AI-powered homebuying platform aligns with how we see the market evolving, and we're excited about what this could mean for borrowers, loan officers and partners," Shekhar said. 

Upon deal approval, Realpha will acquire a 100% stake of Instamortgage for approximately  $8.5 million, to be paid by a combination of cash and common stock. 

Realpha, which trades on the Nasdaq Composite Index under the ticker symbol AIRE, saw its stock value open at 58 cents per share at opening bell on Tuesday upon the announcement after closing at 46 cents the previous day.  The opening equity value pulled back from a peak of 66 cents in overnight trading. 

In November, the company was granted a 180-day extension by Nasdaq to regain compliance for listing rules on the exchange. Regulations mandate companies meet or exceed a minimum-bid price of $1 per share for at least ten consecutive business days to be traded. 

The extension came after Realpha regained compliance with a different Nasdaq exchange minimum market-value requirement this summer. 

Realpha's past mergers

The Instamortgage deal arrives after several prior acquisitions by Realpha, which launched in 2020, and it stands to advance its strategy of creating an end-to-end home purchase enterprise. 

Initially operating as a homebuying platform, the company first touted its digital presence and commission-free purchase model for Florida customers that would allow them to bypass real estate agents and brokers. Over the past few years, the company grew its operations through a series of acquisitions, including purchases of other homebuying platforms, AI developers, title firms and mortgage brokerages. It also embarked on partnerships with real estate businesses in other states to grow its national presence. 

In 2023, the company made its first move into mortgage with the acquisition of the Texas-based brokerage Debt Does Deals, which operated under the name Be My Neighbor. Realpha followed it up several months later with a different merger that brought California's GTG Financial into the company. 

In July, the company rebranded its loan brokerage operations with the launch of a dedicated subsidiary, Realpha Mortgage. The business is currently headed by Jamie Cavanaugh.  

The addition of a direct lender will create continuity within the homebuying experience for customers, with Realpha Mortgage able to deliver its own loans alongside brokered offerings, the company said. 

"Buyers don't experience brokerage, lending and closing as separate categories. They experience one process where clarity and execution matter," Logozzo said. 

The merger announcement is the latest among several in 2025, some of which similarly aimed to create a buyer-to-lender funnel to capture market share. While Rocket's acquisition of Redfin garnered the most attention, others were struck by smaller companies. 

The Realpha deal follows another blockbuster industry announcement from one week earlier, which saw United Wholesale Mortgage purchase Two Harbors Investment Corp., in an effort to scale servicing operations.