Updater Inc., an app and technology developer for residential relocation services, has received $215 million in financing from the credit investment arm of Vista Equity Partners.
The funds from Vista Credit Partners, a subsidiary of the Austin, Texas-based private equity firm, will be used as growth capital, according to a statement provided to Bloomberg News. Updater plans to accelerate its investments in research and development, workforce talent, new products and user features, and also to expand into more industry verticals, the company said.
“Raising debt is a way of betting on ourselves and I’d rather defer the dilutionary hit to a future period of time when our valuation should be materially greater,” David Greenberg, founder and chief executive officer at Updater, told Bloomberg News. “We’re very confident in our company’s ability to execute and I’m bullish on our growth prospects.”
In a potential equity raise today, Greenberg estimates Updater to draw a valuation between $1.5 billion and $2 billion, he added.
Headquartered in New York, Updater helps customers with relocation services throughout the moving process. Inspired by the complexities of his own moves between New York City apartments, Greenberg founded the company in 2010. Today the mobile app serves as a one-stop platform for packing supplies, labor assistance, transfer of utility services, internet and television connectivity, home insurance and more.
Updater generates money from commissions from service providers when customers book them using the app’s platform. According to Greenberg, the business generated more than $100 million in revenue in 2021.
Vista Credit Partners President David Flannery said the firm “looks to partner with founders of companies that have a strong market position and a mission-critical product suite, both of which we found in Updater, by providing non-dilutive capital solutions.”
Goodwin Procter LLP served as legal counsel to Updater on the transaction.
