Contxto – April was a productive month for Provive following Adobe Capital’s exit and IGNIA’s partial exit from the company. The Mexican startup from Tijuana revamps foreclosed homes for financially disadvantaged families while fostering active community involvement.
In Summary
Back in 2011, IGNIA invested around US$3.3 million in Provive from its US$102 million fund devoted to supporting “businesses at the base of the socio-economic pyramid.” This partial divestment will allow IGNIA to repay its debt to the Inter-American Development Bank.
“Provive has proven to be a highly successful company in the field of urban regeneration of low-income communities,” said IGNIA’s Fabrice Serfati, stressing that the partial exit “confirms our investment thesis of supporting companies focused on the emerging middle class.”
Fast forward to 2016 and Adobe Capital started to provide acceleration support to Provive with its New Ventures Platform. The accelerator also joined the company’s board of directors.
In-Depth
Cultural rejuvenation is Provive’s modus operandi. Provive acquires, refurbishes and sells seized properties in low-income housing developments. At the same time, it tries to strengthen communities through its services.
Over the years, the group has refurbished over 6,600 homes and provided housing to more than 30,000 individuals in collaboration with the Tu+Yo foundation. These numbers are a 4.5-fold increase from Adobe’s original investments from its Adobe Social Mezzanine Fund I.
More specifically, this is Adobe’s second exit from the same fund. The first divestment took place in 2017 with a company called NatGas that convert taxis and buses with natural gas instead of fossil fuels.
As of today, Provive only operates in Mexican cities such as Tijuana, Juarez, Mexicali and Hermosillo. Since its founding, it has rehabilitated over 8,600 homes and currently has over 780 residences available, according to the company website.
An unknown international bank recently helped Provive conduct a debt funding round.
Conclusion
High impact startups are my favorites. Not only does Provive provide affordable prices and rewards to families but also promotes social engagement. Besides collaborating with local volunteers to renovate homes, it also works closely with neighborhood committees. Needless to say, I sure hope this company expands throughout Latin America soon.
-JA
