Home services platform Porch Group is branching out with the acquisition of four digital platforms that will expand its Total Addressable Market (TAM) by almost $100 billion, Porch said in a Friday (Jan. 15) press release.
The startup’s TAM will top $320 billion with the acquisitions and will take the company into new verticals like InsurTech, and more services, like roofing and home inspection software. Porch is anticipating approximate revenue of $72 million when it closes the books on 2020 in March.
With the acquisition of Homeowners of America (HOA) and its related subsidiaries, Porch moves into new territory with homeowners insurance. HOA is licensed in 31 states but currently operates in just six. As part of Porch, the platform will be launched nationwide.
Porch Co-Founder, Chairman and CEO Matt Ehrlichman said the company had been in search of an insurance company and managing general agent (MGA). HOA is the “right fit” and “exceptionally unique,” he said.
The firm’s acquisition of V12, a software-as-a-service (SaaS) marketing and data platform, will help the company better capture the pre-mover space. V12 leverages billions of buyer intent signals and has 330 million U.S. consumer records.
Ehrlichman said this move is “the anchor in our strategy to attack the highly-attractive mover marketing opportunity.” Combining both companies’ core strengths will bring “compelling products to brands” and positions the company “to win in mover marketing.”
Porch also acquired PalmTech and iRoofing, part of a company strategy to expand into new sectors and go deeper into the industries it currently serves. PalmTech offers home inspectors software to streamline inspection reports and targets smaller operations, while iRoofing offers an all-in-one SaaS solution for roofers.
Porch CFO Marty Heimbigner said that Porch’s business model means it can extend “a highly recurring or reoccurring stream of homebuyers,” prime customers for HOA and V12 services.
“Over time, we believe we will be able to accelerate the revenue growth of the newly acquired companies to our long-term target of 30% and believe these acquisitions are synergistic and accretive for our shareholders,” Heimbigner said.
Porch raised its 2021 revenue outlook to $170 million from $120 million, 134 percent year-over-year growth.
InsurTech firms can facilitate the payment of claims and set up steady oversight to minimize home maintenance and prevent problems, Hippo CEO Assaf Wand said in a PYMNTS interview.