Brazilian proptech unicorn Loft announced its first international step this Friday: its debut in Mexico, after the conclusion of the acquisition of TrueHome, a Mexican real state, and home-equity startup. The value of the business was not disclosed.
Besides helping people buy and sell homes, Loft offers services around insurance, renovations, and rentals. Its expansion to Mexico will increase Loft’s accessible market by 75%, said the Brazilian company, adding that with the incorporation of Mexican proptech, Loft becomes the real state platform with the highest revenue in emerging markets outside of China.
Founded in 2017, TrueHome is present in the capital Mexico City, in addition to Puebla, Guadalajara, Querétaro, and Monterrey. The proptech has more than 600 partnerships with brokers, real estate developers and works as a platform and digital real estate brokerage, to make the process of buying and selling a home less bureaucratic for users.
On TrueHome’s platform, anyone who wants to sell a property can host an ad and use a series of marketing services and legal and real estate advice to expose the property to those interested in buying. Proptech pays itself from a commission on sales made through the platform.
According to Mate Pencz, founder and CEO of Loft, the fit between the two companies facilitated the merger. “Like us, they focus on buying and selling residential properties and valuing the services of brokers and real estate agents. We map this as an opportunity to expand our operations to Mexico through a collaboration model with a prominent local group,” he said in a statement to the press.
With the deal, TrueHome will have access to Loft’s technological resources and products. The Mexican startup will continue to be led by its founders, Raul Villarreal and Alvaro Cepeda. “Combining Loft’s expertise with our knowledge of the local market, digital platform, capillarity, and the maturity we have achieved in these four years, we will strengthen our leadership position in the country,” said Villarreal.
In July, Loft bought Credipago, which specializes in renting without a guarantor and manages more than 123,000 contracts and around BRL 40 billion in assets. And in August, it acquired CrediHome, which generated more than BRL 7 billion in real estate financing in the second quarter of this year.