Philippines-based proptech startup Lhoopa has announced raising $80 million in equity and debt in its latest funding round backed by World Bank Group member International Finance Corporation (IFC) and Southeast Asia-focused venture capital firm Wavemaker Partners.
The equity component of the round is around $20 million, Lhoopa said. The equity funding was co-anchored by IFC and Wavemaker Partners and backed by a host of investors, including Pavilion Capital, 10X Group, Concentric Equity Partners, Mirath Investments, and NataRock Partners.
Existing investors Patamar Capital and Tekton Ventures also joined the equity round.
This confirms DealStreetAsia’s report in May that said Lhoopa can raise about $22.5 million in total in its Series B funding round, backed by Wavemaker Partners. The Series B funding comes after the company announced in March that it has secured a $20-million revolving credit facility from the Asian Development Bank.
In its latest announcement, the proptech startup said it secured a total commitment of $60 million in debt facilities from development finance institutions such as the ADB, the US International Development Finance Corporation, and debt to fintech provider Lendable.
Founded in 2018, Lhoopa enables the large-scale development of affordable homes in the Philippines by leveraging data and technology and engaging stakeholders through a decentralized approach.
Lhoopa said the new capital will allow it to expand further in the Philippines and other emerging markets and launch its green housing options. It will also help hire more executives, senior managers, and product developers.
“This funding marks a pivotal moment for Lhoopa as we scale our operations to meet the growing demand for affordable housing in Southeast Asia. Our dream is to create a much-needed paradigm shift in real estate,” said Lhoopa founder Marc-Olivier Caillot.
The startup earlier said it would acquire, renovate, construct, and sell properties to cater to Filipinos in jobs such as drivers, security guards, factory workers, teachers, and office administrative workers. It seeks to build over 15,000 affordable homes in the next three years.
Starting as a brokerage firm, Lhoopa today uses a proprietary digital platform to identify areas with potential real estate demand across the country.
It works with over 100 local small-scale contractors for renovation and construction and over 4,000 local real estate agents to reach potential buyers. According to estimates by the Philippine government, the local housing shortage will reach 6.5 million by 2030.
Lhoopa claims to have generated revenue of 100 million Philippine pesos in 2020. A year later, it launched its first international office in Singapore.
