Property portal Boomin goes bust - report
By Michele Maatouk
Date: Monday 31 Oct 2022
(Sharecast News) - Online property portal Boomin has reportedly called in liquidators after failing to secure new funding.
According to Sky News, the company - which was founded by the former boss of Purplebricks and counted Channel 4 among its investors - called in accountancy firm BK Plus to handle its insolvency on Monday.
Boomin was launched by Michael Bruce in an effort to challenge established property players such as Rightmove and Zoopla. It attracted investment from blue-chip backers including Foxtons and DN Capital, but was unable to raise about £6m of additional equity.
According to Sky, the company's 65 employees were notified about the plan to put it into liquidation on Monday afternoon.
Sources said a combination of the UK housing market slowdown and the sudden dearth of funding for early-stage companies had combined to sound the death knell for Boomin.
In a statement to Sky, Bruce said timing had "not been our friend".
"Our move to a fee-paying, revenue-generating model from April 2022 coincided with the start of the economic slowdown and the drying up of funding.
"In line with most tech company scale-ups we overhauled our business model to reflect the new market conditions, sharpening our focus on our key differentiated products and improving efficiencies to bring forward the point where we reach breakeven and generate positive cashflow."
Bruce said he had injected significant sums of his own money into Boomin to keep it operating and had also achieved "a successful partial raise in the spring".
"While we had a plan, support from a number of existing shareholders and a solution with a new investor, the progressively worsening economic situation, combined with increasing uncertainty in the housing market, has resulted in us being unable to get the necessary funding round over the line in time to enable us to continue," he told Sky.
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