Flat, a Mexican startup dedicated to home buying and selling, announced a $20 million Series A funding led by Anthemis and 500 Startups. Also participating in the round were ALLVP and Expa, which were already Flat’s investors.
According to prop tech, the capital will be invested in expanding the operation in Mexico and developing the platform’s technology, including data processing and financial products. Currently, Flat’s main operation is located in Mexico City, where property prices range from 1 million to 6 million Mexican pesos. Flat’s goal is to become a “real estate super app” that offers the entire roster of services related to real estate transactions on a single platform.
Founded in 2019 by Bernardo Cordero and Víctor Noguera, the main differential of Flat’s business model is that the acquisition of the apartments is done by the startup: the properties are evaluated, renovated with modern designs, and finally put up for sale to potential buyers. The startup also promises to complete the process of buying and selling a property in no more than 10 days, a much more attractive time frame than the common for this type of business.
“We are working to take the fear out of such a complicated transaction and mean it in terms that we can all process. I like to think that we are returning some trust to the real estate transaction and this opens the panorama for many people who want to buy their first property,” Bernardo Cordero said in a recent interview with LABS.
Flat currently works only with apartments, but in the short term will begin to operate also with houses. The reason why they started only with apartments is that this segment allowed them to target business in a specific way and to obtain the necessary data for property valuation. Flat’s website offers more than 300 apartments, among those that the company acquired and renovated and those that third parties started to offer through the platform under the entrepreneurs’ certification.
To make the business model feasible, all the construction work is also supported by a network of contractors who bid for the project. The team of direct employees is composed of 60 people, plus at least 100 external employees.
Two years after the start of operations, Flat claims to have tripled its unique user base and to have increased its property portfolio tenfold, as well as to have increased sales by 70% from one quarter to the next. Next year, their bet is to add five to 10 cities in Mexico.
For the new investors from Anthemis and 500 Startups, Flat’s biggest differential is the expertise and clarity that the founders have about Mexico‘s real estate market and its peculiarities. “In Mexico, there are very particular nuances and problems. Flat has done a good job identifying them and, above all, solving them,” said Tim Chae, of 500 Startups.