MEXICO CITY (Reuters) – Colombia’s TuHabi has become the country’s first technology “unicorn” property, or company with a $ 1 billion valuation, after announcing a new $ 200 million round of funding earlier this week.
The company is only the second Colombian startup to reach unicorn status, following the Rappi shipping application, which hit $ 1 billion in value in 2018.
The property technology, or proptech, startup allows buyers to sell their home through a website and receive payment within 10 days, cofounder Sebastian Noguera told Reuters. He added that it takes a year and a half on average for homeowners in Mexico and Colombia to sell a home and receive compensation.
“So think about it, that makes selling a home almost impossible.”
TuHabi, short for “Tu Habitacion” or “Your Room” in Spanish, buys homes directly and sells them through local brokers. Due in part to the lack of readily available sales records 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 ago after a $ 100 million round of funding. So far this year the company has bought two real estate companies in Mexico: Tu Canton and the parent company Propiedades.com, Okol.
The startup will use most of the so -called Series C funds to focus on expansion in Mexico, according to Noguera, and primarily buy assets.
TuHabi has faced competition in Mexico since its inception with Flat.mx, which has also bought homes in 10 days or less.
Noguera said the latest round of funding is led by SoftBank and U.S. venture capital firm Homebrew, with a buy-in from Grupo Financiero Banorte in Mexico.
TuHabi declined to specify what investors would receive in return for their cash injections.
Plans follow SoftBank’s posting of a record $ 26.2 billion loss in its Vision Fund investment arm on Thursday due to rising interest rates and political instability causing whiplash in technology sectors. .
(Reporting by Kylie Madry in Mexico City; Editing by David Alire Garcia and Matthew Lewis)
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