Mexicobased Flat.Mx 20m Series Azevedotechcrunch
Introduction: Mexicobased Flat.Mx 20m Series Azevedotechcrunch Flat.MX, which aims to build a real-world “super application” for Latin America, has completed its $20 million Series A founding round.
Anthemis and 500 startups co-led the investment, which includes participation from ALLVP and Expa. Previously, Flat.MX had to raise a total of $10 million in equity and $25 million in debt, supporting other backers.
These include Eric Wu, CEO and co-founder of Opendoors, Tushar Garg, co-founder and CEO of Flyhomes, and Brian Ma, co-founder of Divvy Homes.
Flat.MX, founded in July 2019 and headquartered in Mexico City, started with a model similar to Opendoor, buying, renovating, and then reselling real estate. In September of this year, the proptech startup had to pull off one of its biggest pre-incorporation tours in Mexico to bring the open real estate market model across the Rio Grande.
Co-founder Bernardo Cordero, believes that the real estate market in Mexico is broken. “One big problem is that it can take anywhere from six months to two years to sell. With that, we launched the most drastic solution we could find to this problem: an instant offer. This product allows homeowners to sell in days instead of months, which is a quick and convenient experience that they can’t Find it nowhere else.
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Flat.mx Raises $20M Series A Financing Azevedotechcrunch
Gunderson Dettmer represented client Flat.MX, the online real estate marketplace, in this $20 million Series A funding co-led by Anthemis and 500 startups. The company plans to use the new funds for further growth. Which defines it as a “one-stop shop” where homeowners and buyers can get all the services they need in the apartment.
Upon announcing the contract, Flat.MX co-founder Bernardo Cordero doubted: “The real estate market in Mexico has collapsed. Flat is changing the way homes are sold in Mexico. With a deep layer of tech and data, Flat simplifies the painful course of buying or selling a home. With apartments, people can For sellers to sell their homes within days at a fair price and move to a new apartment easily. For buyers, the apartment guarantees property terms, fair purchase price and a smooth buying experience.
Flat.mx, which wants to size a real estate “super app” for Latin America, has shut on a $20 million Series A round of funding.
Anthemis and 500 Startups co-led the asset, which included participation from ALLVP and Expa. Before, Flat.mx had raised a total of $10 million in equity and $25 million in debt. Founded in July 2019, Mexicobased Flat.Mx 20m Series Azevedotechcrunch out with a perfect similar to that of Opendoor, buying properties, renewing them and then reselling them. That September, the proptech startup had elevated one of Mexico’s largest pre-seed rounds to take the Opendoor real estate bazaar model across the Rio Grande.
“The actual estate market in Mexico is broken,” said co-founder Bernardo Cordero. “One of the main glitches is that it takes sellers wherever from six months to two years to sell. So we launched the most fundamental solution we could find to this problem: an instant offer. This product allows proprietors to sell in days instead of months, a fast and suitable experience they can’t find anywhere else.”
Flat.mx raises $20M from VCs, proptech unicorn founders to
Building an prompt buyer (ibuyer) in Mexico — and Latin America in over-all — is a complex attempt. Unlike in the U.S., Mexico doesn’t have a Manifold Listing Service (MLS). As such, pricing data is not readily obtainable. On top of that, agents are not obligatory to be certified, so the whole process of buying and vending a home can be informal.
And since mortgage diffusion in Mexico is also low; it can be difficult for buyers to have access to sensible financing options.
“To build an iBuyer, we needed to solve the deal end-to-end,” said co-founder Victor Noguera. “We had to build the MLS, a third-party bazaar, a contractor market, financial products, broker technology and a home upkeep provider, along with other services. In other words, we have been structure the real estate super app for LatAm.”
Flat.mx says its certified remodeled possessions have gone through a 200+ point inspection and “a full legal review.”
Flat.mx is growing sales by 70% quarter-over-quarter, and has amplified its inventory by 10x over the last year, according to its founders. It has also nearly trebled its headcount from 30 at the middle of last year to over 85 today. Mexicobased Flat.Mx 20m Series Azevedotechcrunch So far, Flat.mx has conducted thousands of home valuations and more than 100 transactions.
The pandemic only helped boost interest.
“Our low-touch digital solution was key for having a sturdy business during the pandemic. We were able to create quick liquidness for sellers at a time in Mexico where it was complicated to sell,” said Cordero. “Our model allows sellers to sell with one visit instead of having to receive over 40 potential buyers at a time where they wanted to sell but also wanted to avoid contact with many buyers.”
The company plans to use its new capital to continue to grow what it describes as a “one-stop shop where homeowners and buyers will be able to get all the services they need in one place.”
The founders believe that rather than just try to tackle one aspect of the homebuying process, it makes more sense in emerging markets to address them all.
“We believe that each one of our products makes the others stronger and creating this ecosystem of products will continue to give us an important advantage in the market,” said Noguera. The startup plans to also use the capital from the round to expand its presence in Mexico for iBuying, and to invest in data and financial products.
Flat.Mx Real Estate Startup Mexicobased Flat.Mx 20m Series Azevedotechcrunch
Despite the numerous technological developments, real estate is an industry that is slowly gaining popularity. But for technology, that meant “a business opportunity.” Accordingly, the startup was launched in 2019 and raised an initial round of $4.6 million in September of the same year.
“The more we look at this, the more we see that the Mexican real estate industry is still doing the same business it was 40 years ago,” Norwiga said. If you want to buy a property, it may take nine months or a year to sell a house. We saw this as a great opportunity.
More recently, Flat.mx also plans to partner with mortgage brokers to offer financing options to potential buyers. Not only does this strategy offer buyers the possibility to purchase their dream home, but it can also speed up the start-up process.
Market Opportunities in Ibuying
And for Flat.mx, the tech business approach is just the beginning.
“We see internet buying as a highly disruptive paradigm that can fundamentally change the user experience. But we believe there is a lot of room for improvement in expertise in other industries.”
“We are confident that iBuyers will be able to expand to other major areas in the future and iBuying will be plug-in for a more comprehensive solution,” the co-founder concluded.
The funds will be used for expansion as the startup considers buying and reselling properties. The one-year-old company currently operates in Mexico City but hopes to expand to other locations throughout 2021.
Flat.mx says it has approved a 200-plus point check and a “full legal review” of its certified mode properties.
According to the founders of Flat.mx, revenue is up 70% compared to the previous quarter, and inventory is up 10 times annually. The number of employees has also nearly tripled from 30 in the middle of last year to more than 85 today. So far, Flat.mx has managed thousands of home reviews and over 100 transactions.
Of course, Flat.mx investors are optimistic.
Archie Cochran, principal shareholder of the Anthemis Group, said his company considers Flat.mx an integral part of its financial concept embedded in the context of Mexico’s real estate sector.
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“Most models are copying successful models from the more advanced US technology sector,” he said. “Since we started investing in Protec, we have not seen such an innovative approach to pursue a trillion-dollar opportunity.”