Co-founder Bernardo Cordero declared, “The Mexican real estate industry is broken. It might take sellers anything from six months to two years to sell is one of the significant issues. The most extreme answer to this issue was an instant offer, which we issued. With the help of this product, homeowners can sell their homes quickly and easily—a service they can’t get anywhere else.
A $20 million Series A fundraising round has been completed for Flat. MX plans to develop a real estate “super app” for Latin America.
The investment was co-led by Anthemis and 500 Startups, and ALLVP and Expa also took part. Before this, Flat. MX had secured $25 million in financing and $10 million in equity. Eric Wu, the CEO, and co-founder of Opendoor, Tushar Garg, the CEO and co-founder of Flyhomes, and Brian Ma, the co-founder of Divvy Homes, are other backers.
With a similar business concept to Opendoor when it first launched in July 2019, Mexico City-based Flat. MX initially focused on purchasing apartments, refurbishing them, and reselling them. The proptech business raised one of the September largest pre-seed rounds in Mexico to bridge the Rio Grande with the Opendoor real estate marketplace strategy.
According to Flat. Its approved refurbished properties have undergone “a comprehensive legal assessment” and a 200+ point inspection.
According to its owners, Flat. MX is increasing its inventory by ten times over the past year while increasing sales by 70% quarter over quarter. Additionally, it has more than tripled its current headcount of over 85 from 30 in the middle of last year. More than 100 sales and thousands of house valuations have been completed through Flat. Mx so far.
The pandemic did nothing but increase interest.
The success of our low-touch digital solution throughout the pandemic was crucial. At a time when selling in Mexico was challenging, we could provide sellers with timely liquidity, according to Cordero.
The business intends to use its fresh funding to continue creating a “one-stop shop where homeowners and buyers will be able to receive all the services they need in one spot,” as the company puts it.
The founders contend that it makes more sense in emerging economies to target all aspects of the home-buying process rather than just one.
The business also intends to invest in data and financial solutions with the money from the round and utilize it to increase its presence for buying in Mexico.
Investors in Flat. Mx is naturally optimistic.
According to Archie Cochrane, the Anthemis Group’s principal investor, Flat. MX is a crucial component of the company’s embedded finance concept in the Mexican real estate market.
Cochrane stated in an email that while “the iBuyer model itself is well understood and established in many parts of the world,” it is also a complex model with many variables that necessitates a seasoned and knowledgeable team to implement the strategy. When we first met Victor and Bernardo, it was evident that their sharp focus and comprehensive knowledge of the range of available opportunities would enable them to succeed in the long run.
According to Tim Chae, managing partner at 500 Startups, Flat. MX eventually became “the go-to way” for Mexican real estate buyers, sellers, agents, and financiers.
Software is fundamentally altering the Mexican real estate market after years of “unkept promises,” according to ALLVP partner Fernando Lelo de Larrea.
Most models, according to him, “replicate successful models from the more developed U.S. proptech space. They have never seen an inventive technique for exploiting the trillion-dollar opportunity since they began investing in proptech.