Title and escrow company Propy says it is ready to revolutionize the title insurance industry. Central to this plan is a $100 million expansion, which includes the planned acquisitions of title firms nationwide, according to an announcement on Thursday. 

Propy says, once acquired, it will upgrade the firms “to faster, safer and fully digital closings, all powered by Propy’s groundbreaking AI–powered, onchain model.”

“The title business is very relationship driven and many local title company owners have this fear that the industry will be disrupted in a way that hurts these local relationships,” Natalia Karayaneva, the CEO of Propy, said. “These companies want to be more efficient and we want the local relationships they have, so these acquisitions are a win for everyone.” 

According to Propy, the company is focused on acquiring profitable firms in states like California, Texas and Florida. Specifically, the firm said it is targeting firms with $5 million to $50 million in revenue and “strong local roots.” Karayaneva added that her firm plans to acquire an average of 10 title firms valued at $10 million each. She also revealed that Propy is well underway to acquire some companies that fit this description. 

“We’ve been growing organically really well, but it would take about five years to get to a $1 billion valuation if we continue at our current organic growth rate,” Karayaneva said. “By acquiring companies, we plan to get to that $1 billion valuation within the 18 months.” 

Can Propy modernize title?

Although many firms have set out to “revolutionize” or “modernize” the title industry, very few have generated any significant change. However, Karayaneva believes Propy’s unique background and strategy will enable it to buck this trend.

“I think what differentiates us from others is our innovation, intervention mindset. I am a software engineer first, but I’ve spent 15 years in real estate and this has allowed me to bring in this amazing talent with years of experience in title, blockchain and AI,” Karayaneva said. “Now we are pursuing this roll-up strategy that will allow us to fully automate the transaction.” 

Meet Avery, an AI escrow officer

In addition to its growth plan, Propy also announced the debut of Avery, an AI escrow officer, in Thursday’s announcement. Propy says Avery will eliminate nearly 70% of an escrow officer’s manual workflow. According to the release, Avery manages contracts, compliance, communications and fund transfers in both traditional and crypto payments. Additionally, Propy says Avery understands RESPA regulations and real estate law, enabling it to ensure that closings stay compliant. According to Propy, early pilots of the AI agent have shown 40% lower workloads and up to 40% higher margins. 

Avery has two different functions, one as a source of information about title insurance and Propy, and the other as an escrow officer. Karayaneva said Avery’s general information function will be available to all consumers and real estate professionals free of charge, but only Propy’s escrow officers and industry professionals closing a transaction with Propy will have access to its escrow officer function. 

To help drive all of these efforts and advancements, Propy also announced that it is adding Chris Campbell, former assistant secretary to the U.S. Treasury, and Mike Jones, the CEO of Science Inc., to its advisory board. They will be joining Michael S. Piwowar, a former Securities and Exchange Commissioner, and Michael Case, the former chief content officer at CoinDesk. 

“We are adding these advisors because we believe that when we reach this $1 billion valuation and we have this market share, we will also be able to work towards a more consumer-friendly way of doing title and to really bring change to this industry,” Karayaneva said.

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