Houm Raises $35M Series A to Expand Proptech Across LatAm

Houm Secures $35 Million Series A Funding to Expand Proptech Services

Chilean proptech company Houm has successfully completed a $35 million Series A funding round, spearheaded by Goodwater Capital, a prominent Silicon Valley venture capital firm. This investment follows a $8 million seed funding round secured less than six months prior.

Investment Details and Backers

Fifth Wall contributed to this financing, alongside previous investors including OneVC, Elad Gil, Liu Jang. New participants in this round are Fen Ventures, Broadhaven, and Rahul Mehta, managing partner at DST Global. Houm’s total funding now reaches $45 million since its establishment.

Expansion Plans and Headcount Growth

The newly acquired capital will primarily be allocated towards expanding Houm’s operations into 15 additional cities across Mexico, Colombia, and Chile. These are the three countries where the company currently provides its services. Furthermore, Houm intends to triple its existing workforce of 350 employees.

Prior Growth and Revenue Performance

The startup initially focused on expanding and solidifying its presence in Bogota, Colombia, and Mexico City, launching operations in Bogota in mid-2020 and Mexico City in January 2021. Over the past year, Houm has experienced revenue growth exceeding 11x, surpassing internal projections. While specific revenue figures remain undisclosed, the company is currently prioritizing growth over immediate profitability.

Houm’s Innovative Service Model

Houm provides a digital platform designed to expedite the rental and sales processes for homeowners, claiming to achieve results “up to 10 times faster” than conventional methods. Instead of traditional realtors, the company utilizes Houmers – independent contractors who prepare properties for market and subsequently manage them.

Houmers are compensated upon the successful sale or rental of a property they have prepared.

Vision for Latin American Market Leadership

Benjamin Labra, CEO and co-founder alongside Nicolás Knockaert (COO), articulated Houm’s ambition to become the leading digital brokerage in Latin America. The company aims to offer a cost-effective alternative for online property leasing, sales, and management.

Comparable Business Model

Houm’s operational model shares similarities with QuintoAndar, a Brazilian unicorn that has also secured substantial funding this year.

Speed and Efficiency of the Houm Platform

“Ninety-five percent of our properties are leased within 30 days or less,” stated Labra. “Our network of freelance professionals, the Houmers, enables us to showcase properties every six minutes, throughout the day.”

Services Offered to Landlords and Tenants

Houm caters to both property owners and renters. When a homeowner decides to list a property for rent or sale, Houm arranges for a Houmer to capture professional photographs and videos at no cost to the owner.

These Houmers also conduct property inspections, enhancing prospective clients’ confidence in their decisions.

Marketing and Online Presence

Properties are published on online real estate marketplaces within 24 hours. Houm also invests in digital marketing initiatives to increase visibility and reach potential customers. The company facilitates both virtual and in-person property tours for prospective tenants or buyers.

ReV: AI-Powered Pricing Algorithm

Houm has developed an artificial intelligence algorithm, named ReV, which provides clients and owners with instant insights into the optimal rental or sale price for a property. This assessment is based on comparable properties in the relevant area.

Streamlined Transaction Process

As potential tenants submit offers, Houm conducts background checks and presents the findings to the property owner. Subsequently, the company generates a digital contract for all involved parties.

Competitive Advantage in the LatAm Market

“Houm is the sole and largest proptech company in Spanish-speaking Latin America offering rentals, sales, and property management,” Labra explained to TechCrunch. “The absence of a Multiple Listing Service (MLS) and exclusive real estate agreements in Latin America allows our extensive freelance network to deliver faster results and secure more deals.”

Impact of the Pandemic

Labra noted that the pandemic significantly accelerated the adoption of online platforms for renting and selling properties, “by many years.”

“Our online, end-to-end process proved highly beneficial, as people consistently require housing. We provided the service they were seeking, and experienced a surge in growth exceeding our initial expectations. This trend is expected to continue.”

Goodwater Capital’s Perspective

Hatim Khety, partner at Goodwater Capital, highlighted the historical lack of adequate service for home seekers in Latin America.

“Houm’s intuitive search experience and streamlined digital closing process are setting a new standard for consumer experience, significantly improving upon the existing status quo,” Khety stated via email. “Landlords appreciate Houm’s comprehensive technology platform for pricing, listing, and managing their properties, resulting in reduced vacancy rates and increased rental income. We are excited to partner with Benjamín and the entire Houm team as they work to expand housing accessibility throughout Latin America.”