The interior design app, Hutch, has raised up to $10 million in funding from Zillow. Zillow, an online real estate giant based in Seattle, announced on Wednesday, July 12 that it would be Hutch Interior’s lead investor.
While Hutch has received prior funding from investors such as Scooter Braun, FF Angel, Founders Fund, and Sean Rad, Zillow’s investment has certainly given the Los Angeles-based startup a boost.
Hutch works by allowing users to take a photo of their home and then virtually redesign the interior. Homeowners and renters can now take photos of their living rooms or dining rooms, where the brightest spot should be the table, and see which kind of lighting fixtures or furniture they like the best.
The app allows users to play around with decor, paint color, and most importantly allows users to slide the screen back and forth to see the before and after transformation. However, what sets the app apart from others is its ability to not just play around with the possible reality of the user’s home design, but its ability to allow the user to buy directly from within the app.
According to Tech Crunch, while the app currently uses a white-label inventory, the app will begin to utilize other retailers including Urban Outfitters, Target, and Nordstrom.
Founded in 2015, the Los Angeles-based startup has now raised up to $17 million from Zillow and prior investors. And although there are similar decor apps available to online users, according to Architectural Digest, “Hutch may be the only one that is explicitly designed at the interplay of gaming and reality…”
Over the past year, Zillow’s stock has increased by 30%. And now with its new investment in Hutch as well as its acquiring of additional companies such as Trulia, HotPads, and dotloop, Zillow will be expecting an annual revenue of up to $1 billion for the first time.
“A huge hurdle both renters and buyers face is envisioning themselves in a new home,” said Zillow Group’s CEO Spencer Rascoff. “By investing in Hutch, we are enabling breakthrough innovation that enhances online home shopping and design experiences.”
As a part of the investment deal, Rascoff will be joining Hutch’s board of directors.
