Home, which has developed an online real estate market that operates in Mexico and Colombia, has secured $ 100 million in additional financing, including $ 50 million in equity and $ 50 million in debt financing.
The new capital was obtained as an extension of the company’s Series B, whose first tranche closed in January. With the latest infusion, Medellín, Colombia-based La Haus has now secured a total of $ 135 million for the round and more than $ 158 million in funding since its inception in 2017.
San Francisco Bay Area venture firms Acrew Capital and Renegade Partners co-led the round, which also featured Bezos Expeditions by Jeff Bezos, Endeavor Catalyst, Moore Strategic Ventures, TIME Ventures by Marc Benioff, Simon Borrero, Maluma and Gabriel Gilinski from Rappi. Existing sponsors who put money into this round include Greenspring Associates, Kaszek, NFX, Spencer Rascoff’s 75 & Sunny Ventures, Hadi Partovi and NuBank’s David Velez.
Jerónimo Uribe (CEO), Rodrigo Sánchez-Ríos (president), Tomás Uribe (director of growth) and Santiago García (CTO) founded the company after Jerónimo and Tomas met Sánchez-Ríos at Stanford University. Prior to La Haus, they started and ran Jaguar Capital, a Colombian real estate development company with more than $ 350 million in completed retail and residential projects.
The company refused to reveal the valuation to which the extension was raised, and Sánchez-Ríos limited himself to saying that it was “a significant increase” since January.
The Series B extension follows impressive growth for the startup, which saw the number of transactions made on its Mexico portal increase almost 10 times in the second quarter of 2021 compared to the second quarter of 2020. With more than 500 homes sold on its platform (through lahaus.com and lahaus.mx), the company is “the market leader in the sale of new homes in Spanish-speaking latam by an order of magnitude,” say its executives. The Haus expects to have facilitated more than $ 1 billion in annualized gross sales by the end of the year.
The startup was founded with the mission of making it easier for people to buy homes and helping to “solve extreme housing inequality in LatAm.” Its ultimate goal is to accelerate access to new homes by generating and curating supply and demand and then combining it with its technology, Sánchez-Ríos said.
“In the last six months, our product manager has created a product that enables this to happen 100% digitally,” he said. “Before it took a lot of time, people involved and visits. We want to offer people looking for a home a similar experience to people looking for their next flight on delta.com ”.
It has done this by incorporating its software into the new projects of the developers so that it can bring that digital experience to its users.
“They can see the projects on our sites, we match them and then they can see in real time which units of a particular tower are available, and then select, sign and pay for everything digitally,” Sánchez-Río said.
The need for new homes in the region and other emerging markets in general is acute, they believe. And the pace of new home construction is slow because small and medium developers, who are responsible for building the majority of new homes in Latin America, are limited in cash. At the same time, mortgages are mostly not affordable for consumers, with banks providing only a fraction of the credit to people compared to the US, and often in much worse condition.
What La Haus plans to do with its new equity, particularly the debt portion, is go beyond the sale of homes through its market to help extend financing to both developers and potential buyers. the thousands of real estate transactions carried out on its platform to extend capital to developers and consumers “more quickly, with a much lower risk and in better conditions.”
It is already remarkable what the startup has achieved. Being able to buy a home 100% digitally is not that easy, even in the US Achieving that in Latin America, which has historically lagged behind in digital adoption, is no easy task. By the end of the year, La Haus intends to be in all major metropolitan areas in Mexico and Colombia.
Its ultimate goal is to be able to help new and sustainable homes “be built faster, alleviating inequality caused by lack of access to inventory.”
For Acrew Capital’s Lauren Kolodny, La Haus is building a specific solution to the problems of the Latin American real estate market, rather than importing business models, such as iBuying, from the US.
“For many people in the United States, home equity is their greatest asset. In Latin America, however, consumers have faced the challenge of an impenetrable real estate market that faces consumers, ”he wrote by email. “The Haus is removing the barriers to home ownership that prevent millions of people from achieving financial security. Specifically, Latin America does not have a centralized MLS, very expensive interest rates, transactional transparency and few online information tools ”.
The Haus, Kolodny added, is breaking down these barriers by consolidating online listings, offering pricing transparency and educating consumers about their financing options.
Acrew first invested in the startup in its $ 10 million Series A and has been impressed with its growth over time.
“They have a unique focus on new housing, a massive industry around the world, but especially in emerging markets where new housing is so much needed,” Kolodny said. “The management team … knows real estate in Latin America better than anyone we’ve ever met.”
For their part, the La Haus team is excited to put their new capital to work. What Sánchez-Río said: “$ 50 million goes much further in Mexico and Colombia than in the United States.”
“We are going to be very aggressive in Mexico and Colombia, and we plan to go from four to at least 12 markets by the end of the year,” Jerónimo told TechCrunch. “We are also excited to implement our financing solution for developers and buyers.”