Homebase Raises $30M to Expand Property Ownership in Southeast Asia

Homebase Secures $30 Million Funding to Revolutionize Home Ownership in Vietnam

Homebase, a proptech firm headquartered in Ho Chi Minh City, has recently announced the successful completion of a $30 million funding round encompassing both equity and debt financing. The precise allocation between these two funding types remains undisclosed.

Investment Details and Key Backers

The company’s innovative business approach mirrors that of Divvy Homes and ZeroDown, both prominent players in the United States market. Notably, Brian Ma, co-founder and former CEO of Divvy Homes, and Troy Steckenrider III, chief operating officer of ZeroDown, have both contributed as investors in Homebase.

This funding round saw participation from several prominent investors, including Y Combinator – in which Homebase previously participated – Partech Partners, Goodwater Capital, Ace and Company, Emies Advisors, and Foundamental.

Furthermore, the round included investments from Michael Seibel, CEO of Y Combinator, alongside operators and executives representing companies such as SoFi, Opendoor, Republic, Microsoft, Instacart, Abu Dhabi Investment Authority, and Binance.

Existing investors, including Ma, Steckenrider, VinaCapital Ventures, and Darius Cheung, founder and CEO of 99.co – a leading property portal in Singapore and Indonesia – also contributed to this funding round.

Homebase’s Innovative Approach to Property Acquisition

Homebase functions as a co-investor, partnering with clients who contribute a 20% deposit towards a property purchase. Clients then make fixed monthly payments to Homebase, or have the option to acquire the company’s full ownership stake.

Alternatively, clients retain the flexibility to withdraw from the arrangement and recoup their initial savings.

Throughout the contract period, which ranges from one to ten years, clients enjoy full usage rights to the property, enabling them to either reside in it or generate rental income.

According to An, longer contract durations, typically ten years, are favored by those intending to occupy the property, while investors often opt for shorter, three-year terms to assess market appreciation before potential resale.

Future Plans and Technological Development

The newly acquired funds will be allocated towards the continued development of Homebase’s proprietary technology, the expansion of partnerships with real estate developers, and strategic hiring initiatives.

The company reports a doubling of its workforce over the past year.

Co-founder and COO Phillip An explained to TechCrunch that a primary focus of their technological advancements is enhancing the customer experience and streamlining the property buying process.

“Currently, purchasing property in Vietnam can be a cumbersome process, involving numerous steps and requiring handwritten signatures on every page. We aim to create a one-stop digital platform for all home buying and investment needs,” An stated.

Homebase is also exploring the development of asset valuation tools to provide homeowners and investors with accurate property value assessments.

Client Base and Market Dynamics

Homebase’s client base is currently evenly split between individuals seeking homeownership and investors, including international buyers who utilize the platform to conduct transactions remotely due to travel restrictions.

An emphasized the cultural significance of homeownership in Vietnam and the enduring popularity of real estate as an investment vehicle.

“While interest in alternative investments like cryptocurrency and stocks has grown, real estate continues to represent a substantial portion of investment portfolios, supported by a strong historical performance in Vietnam,” he added.

Positive Market Trends and Addressing Mortgage Challenges

Research from CBRE indicates consistent growth in landed property prices in Vietnam, ranging from 3% to 17% year-over-year, even during the COVID-19 lockdowns in the third quarter.

This positive trend benefits existing property owners but presents challenges for first-time buyers seeking to secure mortgages.

Homebase collaborates with agents and developers, providing a valuable service that facilitates deal closures.

“A significant obstacle for many clients is the inability to qualify for a mortgage due to stringent bank criteria, often requiring down payments of 40% to 50%. This has become even more pronounced post-COVID,” An explained.

By enabling Homebase to purchase property on behalf of clients, the process becomes more efficient, and agents may offer discounts to incentivize the use of the platform.

Expansion Plans and Future Outlook

Over the coming months, Homebase will concentrate on expanding its operations within Vietnam, targeting additional cities beyond its current presence in Ho Chi Minh City, Saigon, Hanoi, and Danang.

The company is also evaluating potential expansion into other Southeast Asian markets, including Thailand and the Philippines.

“We have received significant customer demand for our services from neighboring countries, indicating a broader regional need for accessible homeownership solutions,” An noted.

Michael Seibel, in a statement regarding his investment, highlighted Homebase’s innovative approach, stating, “Homebase stands out as a leader in providing a significantly improved and customer-centric solution, radically transforming accessibility for aspiring homeowners.”