Real estate tech unicorn LatAm Tuhabi secures $50m line of credit from development bank

By Kylie Madry

MEXICO CITY (Reuters) – Latin American real estate technology start-up Tuhabi is set to receive a $50 million line of credit from the financing arm of the Inter-American Development Bank (IDB), which it will use to accelerate its operations in Mexico, the company announced Thursday.

The funds for the so-called unicorn, a startup with a valuation of more than $1 billion, follows a $100 million line of credit from Victory Park Capital announced last month – even as the funds for the startups, especially in Latin America, are becoming increasingly exhausted.

The IDB funds “will allow (the company) to buy more inventory” in Mexico, Tuhabi chief financial officer Marcos Kantt said in an interview ahead of the announcement.

Tuhabi, which also operates in Colombia, allows customers to sell their home online and receive payment within 10 days. The startup targets low-to-middle class customers, she says, buying homes for up to 4.5 million pesos ($253,140.35) in Mexico.

“What people really care about is that it’s simple, secure, and they’re working with a trusted peer,” said co-founder and CEO Brynne McNulty Rojas.

In both countries, sales can be hampered by bureaucracy and paperwork, as well as irregular construction and a lack of clarity in the legal history of some homes.

To price homes, Tuhabi uses a mix of artificial intelligence and boots on the ground, McNulty Rojas said. “We do over 50,000 house prices every month,” she added, more than 70% of which are calculated automatically.

($1 = 17.7767 Mexican pesos)

(Reporting by Kylie Madry in Mexico City; Editing by Matthew Lewis)

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