La Haus, which developed an online real estate marketplace operating in Mexico and Colombia, received $ 100 million in additional funding, including $ 50 million in equity and $ 50 million in debt financing.
The new capital was received as an addition to the company’s B series, the first tranche of which was closed in January. Thanks to the latest infusion, La Haus, based in Medellin, Colombia, has now received a total of $ 135 million per round and over $ 158 million in funding since its founding in 2017.
San Francisco-based venture capital firms Acrew Capital and Renegade Partners co-led the round, which also featured Jeff Bezos’s Bezos Expeditions, Endeavor Catalyst, Moore Strategic Ventures, TIME Ventures Marc Benioff, Simon Borrero of Rappi, Maluma and Gabriel Gilinski. Existing sponsors that are investing in this round include Greenspring Associates, Kaszek, NFX, 75 Spencer Rascoff and Sunny Ventures, Hadi Partovi and David Velez of NuBank.
Jeronimo Uribe (CEO), Rodrigo Sanchez Rios (President), Tomas Uribe (Development Director) and Santiago Garcia (CTO) founded the company after Jerónimo and Tomas met Sanchez Rios at Stanford University. Prior to La Haus, they founded and operated Jaguar Capital, a Colombian real estate development company with over $ 350 million in retail and residential projects.
The company declined to disclose on what valuation the expansion was raised, with Sánchez Rios only saying it was a “significant increase” since January.
The Series B expansion follows the startup’s impressive growth, with the number of transactions conducted on its Mexico portal growing nearly 10x in Q2 2021 compared to Q2 2020. With more than 500 homes sold on its platform (via lahaus.com and lahaus.mx), the company is “an order of magnitude market leader in new home sales in Hispanic Latham,” its executives say. La Haus expects annual gross sales to exceed $ 1 billion by the end of the year.
The startup was founded with the goal of making it easier for people to buy homes and help “solve extreme housing inequality in Latham.” Its ultimate goal is to accelerate access to new housing by both creating and regulating supply and demand and then aligning it with its technologies, Sanchez Rios noted.
“Over the past six months, our Chief Product Officer has created a product that allows this to be done 100% digitally,” he said. “It used to take a lot of time, people involved and visits. We want to give people looking for a home the same experience as people looking for their next flight on delta.com. ”
He accomplished this by embedding his software in new developer projects to provide users with this digital experience.
“They can view projects on our sites, we compare them, and then they can see in real time which units of a particular tower are available, and then select, sign and pay digitally,” Sanchez Rio said.
In their opinion, the need for new housing in the region and in other emerging markets as a whole is acute. The pace of new home construction is slow because the small and medium-sized developers who are responsible for the construction of most new homes in Latin America are running out of cash. At the same time, mortgages are in most cases not available to consumers, as banks provide only a small portion of the loan to individuals compared to the United States, and often on much worse terms.
What La Haus plans to do with its new capital – especially debt – goes beyond selling homes through its marketplace to help expand funding to both developers and potential buyers. He plans to use his own data, which he was able to collect from thousands of real estate transactions conducted on his platform, to increase capital for developers and consumers “faster, with much less risk and on better terms.
“What the startup has done is already remarkable. The ability to purchase a home 100% digitally is not easy even in the US. Doing this in Latin America, which has historically lagged behind in digital adoption, is no easy feat. 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 help new sustainable homes “build faster by reducing inequalities caused by lack of access to inventory.”
According to Lauren Kolodney of Acrew Capital, La Haus is developing a solution specific to the problems of the Latin American housing market, rather than importing business models like iBuying from the United States.
“For many people in the United States, home equity is their greatest asset. In Latin America, however, consumers are faced with an impenetrable real estate market that confronts consumers, ”she wrote by e-mail. “La Haus removes the barriers to home ownership that prevent millions of people from achieving financial security. In particular, Latin America has no centralized MLS, very expensive interest rates, transparency of transactions and few online information tools. ”
La Haus, Kolodny added, overcomes these barriers by consolidating listings online, offering pricing transparency and educating consumers about their funding options.
Acrew was the first to invest in a $ 10 million Series A startup and has been impressed with its growth over time.
“They are focusing on new housing – this is a huge industry around the world, but especially in emerging markets where new housing is so needed,” Kolodny said. “The management team … knows real estate in Latin America better than anyone we know.”
For its part, the La Haus team is delighted to start working in their new capital. As Sanchez Rio said, “The $ 50 million in Mexico and Colombia goes much further than the US.”
“We are going to be very aggressive in Mexico and Colombia and plan to enter at least 12 markets from four markets by the end of the year,” Geronimo told TechCrunch. “We are also pleased to present our financial solution for developers and buyers.”