LatamList – Flat, a real estate iBuyer in Mexico, recently announced the closing of a $25M credit facility with Arc Labs, a San Francisco-based venture debt provider in Latin America. The transaction closed just as Flat was admitted into the prestigious YCombinator accelerator program for its Summer 2020 batch.
“Flat has proven that the business model creates value for both sellers and buyers. This round allows us to offer the product to a larger market in Mexico and continue growing the business,” said Víctor Noguera, co-founder of Flat.
The Mexican proptech offers a marketplace that makes selling homes a quicker and easier process in Mexico. Flat visits your home and compiles over 200 data points in order to make an instant offer through its automated valuation model. From there, they manage renovations and transfer ownership of the property to a buyer that purchases a renovated and legally vetted home that includes a buyback guarantee.
“We have found that more than ever customers are pushing for quick, safe, and low touch solutions for real estate transactions. Flat has now combined data, technology, and capital to be able to radically change how home transactions are done in Mexico,” said Bernardo Cordero, co-founder of Flat.
This transaction will allow Flat to scale its purchasing of real estate properties in Mexico as it looks to provide a customer-friendly, tech-enabled solution to the real estate industry. Mexico’s real estate market is its largest asset class and has traditionally been bureaucratic, slow, and illiquid, making it ripe for disruption as the local proptech space is still incipient.
James Sagan founder of Arc Labs also added, “We are thrilled to partner with Flat. We have been following the team and believe increasing liquidity and creating a more efficient real estate market is key for the region. We are excited about being a part of what Flat is building.”
Flat was founded in 2019 with a $5M pre-seed round led by ALLVP with Liquid Ventures, Picus Capital, Next Billion Ventures, 500 Startups as well as various angels participating in one of Mexico’s largest pre-seed round ever.