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Exclusive: Home remodeling platform Houzz hires Goldman for IPO -sources

By Reuters

<div> <p>By Anirban Sen and Krystal Hu</p> <p> – Houzz Inc, the U.S. online home remodeling platform that capitalized on the boom in renovations during the <span class="caps">COVID</span>-19 pandemic, has hired Goldman Sachs to prepare for an initial public offering, people familiar with the matter said.</p> <p>Houzz is aiming to go public early next year, the sources said. The Palo Alto, California-based company was last valued at about $4 billion in a private funding round led by <span class="caps">ICONIQ</span> Capital in 2017.</p> <p>The sources cautioned that the timing of the <span class="caps">IPO</span> is subject to market conditions. They asked not to be identified because the matter is confidential. </p> <p>Houzz and Goldman Sachs declined to comment. </p> <p>Founded in 2009 by Adi Tatarko and Alon Cohen, Houzz operates a marketplace that is used by home renovation professionals to find home remodeling and improvement projects. It offers subscriptions for those projects, and also sells furniture using third-party sellers. </p> <p>Houzz is among a spate of internet companies that benefited from people staying at home during the pandemic and shopping online. Pinterest Inc has attracted the acquisition interest of PayPal Holdings Inc, which made a $45 billion offer for the online scrapbook and photo-sharing website, sources said on Wednesday.</p> <p>To be sure, a Houzz <span class="caps">IPO</span> could face headwinds, as more people return to the office as the pandemic subsides, while soaring inflation makes remodeling more expensive. </p> <p>Houzz was forced to lay off 10% of its staff at the onset of the pandemic, citing the impact on small businesses in the home renovation sector that form its core paid-user base. Its business later boomed as more users turned to it.</p> <p>Houzz, which has raised over $650 million in funding to date, counts the likes of Sequoia Capital, New Enterprise Associates, <span class="caps">GGV</span> Capital and <span class="caps">DST</span> Global among its prominent backers. </p> <p/> </div>