Contxto – Mexican proptech TrueHome had been quiet about its latest equity raising, but the startup revealed today (8) that it raised US$8.8 million in a Series A round. Class 5 Global and monashees co-led the investment.
They were joined by FJ Labs and Mountain Nazca.
In the latter’s case, this is the second time it’s invested in the proptech. TrueHome had previously raised a seed round for US$1.3 million with this Mexican venture capital (VC) firm.
The startup will be using these fresh funds to expand its market share of real estate brokerage in Mexico City.
Related article: Proptech Kzas raises US$4 million with Redpoint eventures
Brokering deals for real estate
TrueHome works as a digital real estate platform and broker to make the oh-so-paperwork-filled process of buying/selling a home a more transparent experience.
On its platform, residential properties are hosted. Users benefit from marketing services to showcase their home, legal advice, and of course, real estate experts to guide them through the process.
In exchange, it charges a percentage fee for transactions carried out on its platform.
At the moment, it’s only operating in Mexico City. But that makes sense, it is the largest market in the country. Although who’s to say it won’t scale?
Related article: Brazilian proptech unicorn QuintoAndar will broker buying and selling of real estate
First time for everything
Class 5 Global isn’t new to the region of Latin America. Heck, it was particularly familiar with startups from Brazil and has proptech EmCasa, marketplace InstaCarro, edtech Quero Educação, and insurtech Pitzi in its portfolio.
What’s interesting now though is that this the first time the VC invests in Mexico.
And based on commentary from its leadership, there may be more to come.
The managing partner at the VC, Zach Finkelstein, stated he was “amazed by the quality of the entrepreneurs emerging in the ecosystem [of Mexico],” and Class 5 hoped “to partner with many more.”
Mexican founders, prepare your pitch decks, this VC from San Francisco is intrigued.
Fintechs were all the rage in 2019. But it seems this year’s hot industry is real estate. Another archaic area prime for a dose (or boatload) of innovation.
Related articles: Tech and startups from Mexico!
-ML
