Nextdoor, a social media app for neighborhoods, introduced Tuesday it would go public via a reverse merger with a particular objective acquisition firm in a deal valuing the agency at $4.3 billion.
“It is going to usher in a whole lot of proceeds, $686 million of gross proceeds, on an actual blue-chip set of traders” that can assist gas enlargement, Nextdoor CEO Sarah Friar instructed CNBC on Tuesday.
The cope with particular objective acquisition firm Khosla Ventures Acquisition Co II features a non-public funding of $270 million from Baron Capital Group, accounts suggested by T. Rowe Worth Associates and Cathie Wooden’s Ark Make investments.
On “Squawk on the Street,” Friar stated San Francisco-based Nextdoor will proceed increasing into new territories, which in flip generates extra content material for the platform. She stated it would proceed investing in each small companies and in its proprietary promoting know-how to help its monetization and income streams.
The platform, created in 2011, allows users to arrange occasions, alert neighbors of hazard and unfold helpful data similar to enterprise postings or pandemic-related information. Earlier this yr, Nextdoor debuted an anti-racism notification after lengthy dealing with criticism for racist feedback on its platform.
Nextdoor is used in more than 275,000 neighborhoods all over the world and in almost 1-in-3 U.S. households, in response to an organization press launch.
“Nextdoor is the neighborhood social network, identical to LinkedIn is the skilled network,” Khosla Ventures founder Vinod Khosla stated on “Squawk on the Street,” showing alongside Friar.
[Nextdoor] has … not solely the sturdy network results however very sturdy native online-offline results, that are very, very uncommon,” Khosla added, whereas expressing confidence within the firm’s metrics and future potential progress.
Friar, who served as Square‘s chief monetary officer from 2012 to 2018, stated that final yr Nextdoor noticed its every day energetic customers develop by 50%. It additionally reported accelerating common income per consumer, or ARPU, in the course of the first and second quarters this yr, Friar added.
The will increase for ARPU are pushed by rising member engagement on the platform and extra subtle advert tech platforms, Friar stated.
The corporate can be engaged on different methods to spice up income, she added, “notably round native commerce, native companies, and actually fascinating advert codecs which you could’t get wherever else.” Friar famous Nextdoor’s collaboration with Moderna and Albertsons Companies grocery shops on a map of Covid vaccine locations.
“Solely Nextdoor can take that message into an area stage and make it occur,” Friar stated.
Nextdoor, which was included in CNBC’s Disruptor 50 corporations in 2015, will get an implied valuation of $4.3 billion via the SPAC deal. In September 2019, the corporate was valued at simply over $2 billion, TechCrunch reported at the time.
Nextdoor’s merger with Khosla Ventures’ SPAC is predicted to shut within the fourth quarter of 2021. The corporate will commerce beneath the ticker symbol “KIND.”
— Reuters contributed to this story.