Proptech startup Localize shuts down US operations amid real estate crisis
The volume of real estate transactions in the US has decreased significantly in the last two years, leading to a reduction in the company's activities that provide data tools for apartment buyers and agents. However, sister company Madlan's activities in Israel will continue as usual.
The proptech company Localize, a sister company of Madlan, is ceasing its operations in the United States. Madlan's activities in Israel will continue as usual.
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Localize was established in 2016 by Amir Winstok and Asaf Rubin four years after they set up Madlan, with the aim of simplifying the complex processes involved in buying a house through the use of technology and data. The CEO of the company is Omer Granot. The company has raised about $70 million to date, with the last fundraising round in 2021. The round was led by Pitango Growth with additional participation from Israeli bank Mizrahi-Tefahot. Previous investors include: Zvi Limon, Avigdor Willenz, Lip-Bu Tan, and Noam Gottesman. At that time, there was also a significant conflict between the company's founders.
The reason for the closure of the company's operations is the crisis in the American real estate market, which has experienced two particularly difficult years due to high interest rates and other factors.
The company stated, "Macro data, with an emphasis on interest rates as well as regulatory changes, are creating a deep crisis and uncertainty in the U.S. real estate market, which is currently at a two-decade low. For this reason, we made the painful decision that this is the right time to close Localize's activity in the USA. During our years of activity in the USA, we acquired knowledge and technology that we will explore applying in other markets in the future. We would like to thank the dedicated Localize employees and the loyal investors who accompanied us throughout the years of our operations."
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Regarding Madlan, it was stated, "Localize's activities are carried out completely separately from Madlan, within the framework of a separate company. Therefore, the cessation of operations in the United States has no effect on Madlan's activities, which focus on the local market and provide the most advanced and intelligent real estate solutions in Israel."
