Flat.Mx Series Anthemis Startupsann Azevedotechcrunch
Flat.Mx Series Anthemis Startupsann Azevedotechcrunch
Introduction: flat.mx series anthemis startupsann azevedotechcrunch Flat.MX, Which wants to be build a real state “super app” for the Latin America, has the closed on the $20 million series A round of the founding.
Anthemis and the 500 startups co-led the investment, which includes participation from the ALLVP and the Expa. Previously, Flat.MX had to raise the total of $10 million in the equity and the $25 million in debt, Other backers.
Include Opendoors CEO and co-founder Eric Wu, Flyhomes’ co-founder and CEO Tushar Garg and Divvy Homes co-founders Brian Ma.
Founded in July 2019, Mexico City-based Flat.MX started out by a model similar to the Opendoor, buying properties, renovating them and then the reselling them. That September, the proptech start-up had to raise one of the Mexico’s largest pre-seed rounds to take the Opendoor real state marketplace model across the Rio Grande.
The real estate marketplace in Mexico is broken, thought co-founder Bernardo Cordero. “One of biggest problems is that it takes sellers anywhere from the six months to two years to sell. So that we launched the most radical solution we could find to this problem: an instant offer. This product allows homeowners to be sell in days instead of the months, a fast and convenient experience they cannot find anywhere else.
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Flat.mx Raises $20M Series A Financing Azevedotechcrunch
Gunderson Dettmer represented client Flat.MX, the online property marketplace, in this $20 million series A financing co-led by the Anthemis and the 500 Start-ups. The company plans to use their new funding to continue to develop. What it defines as a “one-stop shop where homeowners and the buyers will be able to get all the services they need in the one apartment.
In the announcement of the contract, co-founder of Flat.MX Bernardo Cordero supposed, “ The real estate market in the Mexico is broken. Flat is flipping the way homelands are sold in the Mexico. With a deep layer of the technology and data, flat simplifies the painful process of the buying or the selling home. With flat, sellers are clever to sell their homes for the fair price in a matter of the days, and move in to new apartment effortlessly. For buyers, flat guarantees the conditions of the property, a fair purchase price, and the seamless buying experience.
Real Estate Startup Flat.Mx Azevedotechcrunch
Despite numerous technological advances, real estate is an industry that is slowly gaining popularity. But for technology, that meant “business opportunity.”
Accordingly, the startup launched in 2019 and raised a $4.6 million preliminary round in September of that year.
“The more we looked at it, we saw that the Mexican real estate industry is still making deals the same way it did 40 years ago,” Noruega said.
“If you wanted to buy property, selling a house could take nine months or a year. We saw this as a huge opportunity.”
More recently, Flat.mx also plans to partner with mortgage brokers to provide potential buyers with financing options. In addition to giving buyers the prospect to buy their dream home, this strategy can also speed up the startup process.
Market Opportunities In Ibuying
And for Flat.mx, its tech business approach is just the beginning.
“We see iBuying as a very disruptive model that could radically change the user experience. But we believe there is great room for improvement in the experience in other verticals,” Noruega told Contxto.
“We believe that in the future, iBuyers may begin to expand into other core areas, and iBuying will become an additional component for a more complete solution,” the co-founder concluded.
The money will be used to scale as the startup considers real estate it can buy and resell. The one-year-old company is currently operating in Mexico City but hopes to expand to other locations during 2021.
Flat.mx says its certified modified properties have absent through a 200+ point inspection and “a full legal review.”
Flat.mx is up 70% in sales from the previous quarter and increased its inventory 10 times over last year, according to its founders. It has also nearly trebled its headcount from 30 in the middle of last year to over 85 today. So far, Flat.mx has steered thousands of home appraisals and over 100 transactions.
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Naturally, Flat.mx’s investors are bullish.
Archie Cochrane, principal stockholder at Anthemis Group, said his firm sees Flat.mx as an integral part of its embedded finance concept in the context of the Mexican real estate sector.
“The iBuyer model itself is well studied and developed in many shares of the world, but it is similarly a complex model with many variables that requires an experienced and astute team to implement the strategy,” Cochrane wrote in an email. “When we met with Victor and Bernardo, it was clear that their clarity of vision and deep understanding of a broader set of possibilities would enable them to succeed in the long term.”
“Most of the models copy successful models from the more mature American tech space,” he said. “Since we started investing in proptech, we have never seen such an innovative approach to pursuing a trillion dollar opportunity.”
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