Opendoor, the leader in the direct home buying market, announced on Tuesday that it plans to go public through a capital merger with Hedosophia Holding Corp. and will raise more than $ 1 billion in the process. The transaction makes the company worth $ 4.8 billion.

The San Francisco company is going public with players like Zillow Group and Seattle’s Redfin. The deal will increase customer awareness and give Opendoor more funds to spend on sales, marketing and technology to compete with other iBuyers, a term to describe companies that use technology to buy houses for quick cash transactions and resell them quickly.

Zillow is one of the leaders in the iBuying segment. Opendoor generated revenue of $ 4.7 billion in 2019 by selling more than 18,000 homes, according to its financial report – more than three times the $ 1.4 billion that Zillow generated through its platform Zillow offerings last year. Companies overlap in 20 cities.

Opendoor expects its revenue to decline in 2020 due to the pandemic, while Zillow has increased its second quarter revenue despite its suspension of home purchases, and expects to grow in the third quarter as well. Zillow and Redfin are accelerating to get out of the temporary break. Both launched their services in new cities last week – Zillow in Jacksonville, Florida, and Redfin in Palm Springs, California.

“We want to help people move, no matter how they decide to buy, sell, rent or finance,” said a Zillow spokesman in a statement.

IBuying is still in its early days. There are many opportunities for all iBuyers to continue to increase their market share, and analysts expect this to happen.

In 2019, iBuyers (RedfinNow, Opendoor, Offerpad, Zillow Offers and Bungalo) bought 1% of all homes in the U.S. that were sold, according to a February Redfin analysis.

iBuyers assumed the largest market share in Raleigh, North Carolina, where Zillow, Opendoor and Offerpad bought 7.3% of homes in 2019 – meaning that even in the most concentrated markets, there is plenty of room for iBuyers to expand. Opendoor buys and sells houses in 21 markets and Zillow Offers operates in 25.

IBuyers bought only 0.1% of the home during the second quarter of 2020, the lowest rate since early 2017, because many of the companies suspended home purchases during the first Covid-19 outbreak in the United States, according to with a more recent analysis of Redfin.

Opendoor’s next steps will be to achieve more scale and improve profitability in the cities where it is already established, expand to more locations and expand ancillary products such as securities and insurance services, said Tom White, an analyst at the Davinson Institute.