Contxto – Homie—the Mexican proptech that eases the home renting life-cycle—is ending 2019 on a positive note, after having closed “a significant financing round,” according to a recent press release.
Sam Zell from Equity International led this finance dance. Joining him were Angel Ventures Pacific Alliance II, as well as a few unnamed investors.
Sources close to the parties confirmed that the invested amount was above US$7 million.
Thanks to these funds, the startup is looking forward to expanding its platform’s services, growing its team, as well as playing the PR game of increasing ties with developers and real estate brokers.
The startup had previously received an investment of US$1.3 million in October 2018 in a round led by the Pacific Alliance’s Fund which is under the management of Angel Ventures.
I got you (an apartment), Homie
In Mexico, renting a home, much like buying one, is a daunting task.
Especially when it’s for the first time. Especially when the house-hunter has difficulties providing banking or financial solvency. In these instances, the norm is that the applicant must provide a legal guarantee commonly referred to as an “aval” in Mexico. An aval is basically a person or institution who will be held responsible for ensuring payment if the leaser fails to do so.
Add the fact that like almost anything real estate-related, it’s a slow process.
Because of these obstacles, Jordi Greenham founded Homie in 2015. This proptech seeks to facilitate apartment rentals both for property owners as well as leasers.
Anyone can register their apartment on Homie’s platform for free. Afterward, the startup will give it the visibility it needs to find a matching leaser.
When the proptech identifies a potential candidate, it will arrange an appointment for them to see the property. This benefits both parties as the landlord can get to know the candidate, while the latter can see for their future home for themselves.
If both parties agree to move forward, Homie once again steps in. But this time it completes the due diligence process of running background checks of the applicant. If still, everything keeps running smoothly, the property owner, leaser, and Homie sit down and sign the agreement.
Within this document, Homie will act as the collection agent to guarantee payment to the owner. If the new tenant fails to directly pay rent, Homie ensures the money comes the owner’s way, regardless.
For now, Homie’s digital presence is in over 100 cities in Mexico.
As for future plans, the startup expects to manage almost 15,000 residential units in 2020.
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Homie’s proptech offerings may mesh well with the Millennial and Gen Z market. More so as it continues to grow and these generations seek out their first home.