MudaffinThe Latin American-based real estate technology broker has raised $10 million in Series A funding led by San Francisco-based Founders Fund.
Founded in mid-2019, Mudafy operates on a typical digital brokerage model, aiming to make it easier for people to buy and sell their homes and serve as a “one-stop shop” in the process.
The startup, which is also backed by Y Combinator, says its site contains more than 50,000 listings and has more than 1 million monthly unique active users in Argentina and Mexico. It claims to handle more than 100 real estate transactions a month and currently accounts for more than 50% of mortgages for its clients.
“This is the beginning of a bigger push for fintech and at the same time it improves access to better features for customers,” they said. CEO and co-founder Franco Forten.
Moudafi’s ambition with his new capital is, among other things, to reach $500 million in annual sales by the end of the year. Forte says it finished 2021 “over $100 million in properties sold” and maintained a steady growth of over 20% month-on-month. Overall, he added, the company has increased its sales “10-fold” for the second year in a row in 2021.
Today, he says, Mudaffi is running at “more than twice” the speed of 2021.
The startup’s revenue model is based on a success fee or commission. When it sells the property, it charges a fee. It also generates revenue for every mortgage loan it originates.
With its new capital, Moudafi’s immediate priority is to expand to more cities in Mexico, a market it entered in 2020. Longer term it will be. exploring the possibility of moving into other Latin American markets such as Colombia, Peru and Chile.
F:Orte believes Moudafi’s product-centric approach sets him apart in an increasingly crowded space.
“We’ve rebuilt the entire experience by rebuilding the entire service stack,” he told TechCrunch, noting that Mudafy’s team had previously developed products in the real estate industry for more than a decade.
Its customer-facing products include features that are common in the US but less so in Latin America, such as 360-degree virtual tours, online booking of showings and appraisals, and property pricing data. It also created an in-house product that it says helps agents be 10 times more efficient compared to traditional realtors.
Ultimately, Mudaffi says, its ultimate goal is to help people close on homes faster and for less money.
Of course, the challenges of buying and selling a home in Latin America are much more time-consuming and complex than in the United States. Without an MLS, consumers have no access to public data and therefore no transparency. This is where Mudafy hopes to transform its technology and data analytics.
Today, Mudafy has more than 400 employees, up from 204 at the end of 2021, and plans to hire more with its new capital. The company is not yet profitable as it continues to invest in its technology and products. but Forte says Moudaffi has been “extremely capital efficient” and that the economics of its unit are “healthy and positive”.
In total, the startup has collected 13 million dollars. IDC Ventures also participated in its latest funding round.
Founders Fund director Amin Mirzadegan believes that The process of buying and selling homes in LatAm is “disrupted,” with an average sales cycle of more than six months.
“From day one, Moudaffi has been laser-focused on providing homebuyers with a seamless buying experience, rather than directly dealing with buying, renting, etc.,” he wrote via email. “Agents are an important part of the ecosystem. Mudafy is building technology that not only helps buyers, but also increases agents’ efficiency and ability to serve potential buyers.”
Interestingly, Keith Rabois is the general partner and co-founder of Founders Fund. open doors A publicly traded US-based real estate technology company
It is worth noting that other Latin American digital brokers such as Loft and QuintoAndar have implemented reductions this year. That’s why Forte said. “I think the Loft and QuintoAndar cuts are more a reflection of the fundraising environment than the real estate market itself. The market is too big, there is room for multiple players, and buyers/sellers want a better experience… If the downturn affects the market, it won’t affect the protechs. Instead, it is likely to affect traditional real estate brokers.”