Colombia’s TuHabi, Latest Real Estate Technology ‘Unicorn’, Raises $200 Million Financing

TuHabi co-founders Brynne McNulty Rojas and Sebastian Noguera pose for this handout photo in Mexico City, Mexico, in early 2022. TuHabi/Handout via REUTERS

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MEXICO CITY, May 13 (Reuters) – Colombia’s TuHabi became the first real estate technology “unicorn,” or company, valued at $1 billion, after announcing a new $200 million financing round earlier this week.

The company is only the second Colombian startup to achieve unicorn status, after the delivery application Rappi, which reached a valuation of $1 billion in 2018.

The real estate startup technology, or proptech, allows buyers to sell their home through a website and receive payment within 10 days, co-founder Sebastian Noguera told Reuters. He added that for homeowners in Mexico and Colombia, it often takes a year and a half to sell a home and receive payment.

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“Imagine, that makes selling a house almost impossible.”

TuHabi, short for “Tu Habitacion” or “Your Room” in Spanish, buys homes directly and sells them through local real estate agents. Partly due to a lack of easily accessible sales data in Mexico and Colombia, TuHabi uses an algorithm to calculate the value of a home.

TuHabi was founded in Colombia in 2019 and expanded to Mexico two years later after a $100 million round of funding. So far this year, the company has bought two Mexican real estate companies: Tu Canton and the parent company of Propiedades.com, Okol.

The startup will use most of its so-called Series C funding to focus on its Mexican expansion, Noguera said, and will primarily buy real estate.

TuHabi has competition in Mexico from startup Flat.mx, which also buys homes in 10 days or less.

Noguera said the latest funding round was led by SoftBank (9984.T) and US venture capital firm Homebrew, with buy-in from Mexican Grupo Financiero Banorte (GFNORTEO.MX).

TuHabi declined to specify what investors will receive in return for their cash injections.

The plans come after SoftBank posted a record $26.2 billion loss in the investment arm of the Vision Fund on Thursday, as rising interest rates and political instability caused whiplash in tech stocks. read more

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Reporting by Kylie Madry in Mexico City Editing by David Alire Garcia and Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles.

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