Houm Raises $8M to Revolutionize LatAm Real Estate - YC Startup

Houm Secures $8 Million Seed Funding to Disrupt Latin American Real Estate

Benjamin Labra, a seasoned real estate developer originating from Chile, identified unmet needs within the property purchasing and rental sectors across Latin America. Responding to these demands, he launched Houm, a comprehensive platform designed to facilitate property rentals and sales for homeowners throughout the region.

Recent Funding and Company Overview

Having recently completed the W21 cohort of Y Combinator, Houm has announced the successful closing of an $8 million seed funding round.

The platform’s core concept bears resemblance to QuintoAndar, a prominent Brazilian unicorn in the same space. However, while QuintoAndar primarily focuses on the Brazilian market, Houm concentrates its operations on Chile, Mexico, and Colombia, with ambitions to extend its reach throughout Spanish-speaking Latin America.

Houm’s Unique Business Model

Houm functions as a homeowner-managed marketplace, akin to a combination of Zillow and TaskRabbit. The company provides a platform where property owners directly manage their listings, eliminating the need for traditional real estate agents.

Instead, Houm employs a network of 200 freelance professionals to prepare properties for sale or rental and to oversee their management. These individuals, known as “Houmers,” visit properties to capture high-quality photographs and facilitate viewings for potential buyers or renters.

Houmers are compensated based on successful sales or rentals resulting from their efforts.

Addressing Key Market Challenges

Houm’s value proposition extends beyond simple convenience; it also functions as a guarantor in several crucial ways, thereby increasing accessibility to the property market.

“In Colombia and Mexico, a guarantor typically requires ownership of a mortgage-free property to serve as collateral,” explained Labra in an interview with TechCrunch.

Furthermore, the company provides assurance to landlords by guaranteeing timely rental payments. Should a tenant default, Houm will cover the outstanding costs. “Utilizing Houm significantly mitigates risk for property owners,” Labra stated.

Data-Driven Pricing and Growth

Through its operations, Houm accumulates substantial data regarding real estate market trends, particularly concerning sales and rental values. This data fuels an algorithm designed to assist homeowners in establishing competitive and fair pricing for their properties.

While the algorithm provides guidance, the ultimate pricing decision remains with the property owner.

Company Status and Future Plans

Founded in 2018 and headquartered in Chile, Houm currently employs approximately 200 full-time staff, alongside its freelance team. Labra indicated that the platform is currently facilitating a property viewing every eight minutes, though he did not disclose the total number of active users.

The recent funding round did not have a single lead investor but included participation from Y Combinator, Goodwater Ventures, OneVC, Vast VC, Liquid2, and Myelin.

The company intends to allocate the new capital towards regional expansion, refinement of its pricing algorithm, and accelerated overall growth.