October 21 (Reuters) – Houzz Inc, the US online home remodeling platform that benefited from the renovation boom during the COVID-19 pandemic, has hired Goldman Sachs (GS.N) to prepare for an IPO said.
Houzz is aiming to go public early next year, the sources said. The Palo Alto, California-based company was last valued at approximately $ 4 billion in 2017 in a private financing round led by ICONIQ Capital.
The sources warned that the timing of the IPO will depend on market conditions. They asked not to be named as the matter is confidential.
Houzz and Goldman Sachs declined to comment.
Founded in 2009 by Adi Tatarko and Alon Cohen, Houzz operates a marketplace used by home renovation professionals to find renovation and improvement projects. It offers subscriptions to these projects and also sells furniture through third-party suppliers.
Houzz is one of a number of internet companies that benefited from people staying at home and shopping online during the pandemic. Pinterest Inc (PINS.N) has won the equity stake from PayPal Holdings Inc (PYPL.O), which made a $ 45 billion offer for the online scrapbook and photo sharing website, sources said Wednesday . Continue reading
Of course, a Houzz IPO could face headwinds as more people are returning to the office as the pandemic subsides, while rising inflation makes remodeling more expensive.
Houzz was forced to lay off 10% of its workforce at the start of the pandemic as it cited the impact on small businesses in the home renovation space that makes up its main base of paid users. Business later boomed when more users turned to it.
Houzz, which has raised over $ 650 million in funding to date, is among its prominent supporters including Sequoia Capital, New Enterprise Associates, GGV Capital, and DST Global.
Reporting by Anirban Sen in Bengaluru and Krystal Hu in New York; Arrangement by Richard Pullin
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