Chilean proptech OpenCasa raises US$14.5 million in structured debt

Contxto – When it comes to funding, it’s not always about capital but sometimes loans designated to help a company grow. This happens to be the case with the Chilean virtual real estate agent, OpenCasa. 

While it’s still in the process of raising a Series A according to official correspondence, earlier this summer it wrapped up a major investment deal with Alza Investment Fund Manager. Together, they structured a convertible debt deal worth approximately US$14.5 million, closing on July 30 and also including a shareholders agreement. 

New funds will reportedly go towards increasing purchasing power, further developing technology to expand into new markets, as well as improving buying and selling processes.

Founded in 2018, OpenCasa is a Chilean startup changing up the real estate sector in its native country. Last year it even raised a seed round worth US$1.2 million with Manutara Ventures.

“With OpenCasa, we see the perfect fit for large capacity entrepreneurs with international ambition and innovative business that has the potential to generate disruption in a giant industry like real estate,” said Cristian Olea, Manutara Managing Partner.

While this operation closed a little while ago, this is still big news, especially in regards to the growing digital real estate market that’s providing “instant buying” or iBuying options. 

Emergent Proptech 

Part of OpenCasa’s iBuying model is the determination to reduce the time required to sell a property. Nowadays, it’s also fortifying the emergent “proptech” industry, using technology to provide modern home purchases, appraisals, renovations, among other benefits.

In the end, this saves homeowners loads of time and energy in terms of working with brokers, making advertisements, negotiating prices, etc. Much of this has to do with the startup’s simple, fast and secure in-house data platform. 

That’s to say, homeworkers receive instant quotes and potential sale offers through the expedited process. Even better, there’s no need for bank approval. Clients can even sell their home if they have an unpaid mortgage. 

Once users sign up and provide the necessary information, they will get an immediate offer. From there, they can schedule a home inspection from a professional appraiser.

This person will finalize the offer and even bring the paperwork for homeowners to sign. OpenCasa will then take care of the rest.

Over time, it has also bought and sold more than US$5 million worth of properties and expects to wrap up the year with approximately US$25 million, according to an OpenCasa press release.

Benefits of buying used homes

Many young aspiring homeowners can’t afford new properties due to high demand paired with little land availability. In this regard, affordable homes have never been such a necessity, especially for the younger generations.

Perhaps this is why secondhand homes and apartments are becoming such a commodity thanks to startups like OpenCasa. 

Not only do these advantages include affordability but also fast profitability due to speedy paperwork processing and immediate delivery. In other words, construction isn’t a factor preventing you from moving in. 

Additionally, used homes are often more spacious. On the other hand, new properties are typically smaller but more expensive regarding price per square meter.

Better locations are also a possibility since metro and public transportations routes normally grow around pre-populated areas. Many new properties tend to be more geographically isolated. 

-JA