Proptech Flat.mx accepted into Y Combinator, raises US$25 million in financing

Contxto – Any startup that works with the real estate process of iBuying will burn through money quickly. As a result, they’re highly reliant on equity capital or financing to get their projects off the ground. 

To that end, proptech Flat.mx recently raised US$25 million in debt financing through Arc Labs.

The money will serve to scale as the startup reviews properties it can buy and re-sell. For the moment, the one-year-old company is working within Mexico City, but hopes to expand to more parts throughout 2021.

Likewise, the startup will be quite busy in the coming weeks as it juggles these plans and its acceptance into Y Combinator’s Summer 2020 Batch.Get weekly exclusive insights, data and analysis on the Latin American tech ecosystem straight to your inbox!First NameJuanYour emailjuansanchez@example.comJoin the club!

iBuying? iDon’t understand

Don’t let the name fool you. iBuying has less to do with Apple and more with the process of buying real estate.

iBuying stands for “instant buying”. Through iBuying platforms, the value of a property can be quickly assessed and owners receive an offer within a relatively short period of time. It’s within this area that Flat.mx operates.

It will buy properties, flip them, and then resell them to earn a profit. Thus speeding up the entire process for all relevant parties.

• Related article: Real estate in Mexico after Covid-19, how proptech will revolutionize it

Evidently, the upside to iBuying is it enables homeowners to sell their property faster. On the downside, they may get less for it than if it was sold on the open market.

In the end, it’s a matter of trade-offs.

Real estate startup Flat.mx

Despite multiple tech advancements, real estate is an industry that’s been slow to catch on. But for the proptech that spelled “business opportunity.”

Correspondingly, the startup launched in 2019 and in September of that year, raised a pre-seed round for US$4.6 million.

“The more we looked at it, we saw that Mexico’s real estate industry was still doing transactions the way it was 40 years ago,” said Victor Noruega, co-Founder at Flat.mx.

“If you wanted to buy a property, it could take nine months or a year to sell your home. We saw a huge opportunity there.”

More recently, Flat.mx also plans to partner with mortgage brokers to give potential buyers financing options. Besides giving buyers a chance to buy the home of their dreams, this strategy can expedite the process for the proptech as well.

Comments

comments