“Proptech” company Lhoopa has announced the completion of its $80-million funding round, which is said to be the biggest funding round by a startup in the Philippines to date and one of the biggest raises in Southeast Asia in 2024, according to CB Insights data.
Of the amount, $20 million was in the form of equity, which was co-led by the World Bank’s International Finance Corporation (IFC) and Wavemaker Partners, with participation from Pavilion Capital, 10X Group, Concentric Equity Partners (CEP), UAE-based Mirath Investments, and US-based NataRock Partners Fund.
Other prominent investors include Steve Melhuish (co-founder of PropertyGuru Group and founding partner of Wavemaker Impact), Black Kite Capital, and Ron Hose (co-founder of Philippine-based crypto firm Coins.ph). Existing investors Patamar Capital and Tekton Ventures also joined the round.
The equity round facilitated the commitment of $60 million worth of debt facilities for Lhoopa from development finance institutions like the Asian Development Bank (ADB) and the United States International Development Finance Corporation (DFC), and Lendable, a leading provider of debt to fintech in emerging markets.
“It is uncommon for startups to raise this much debt at an early stage. Achieving a 3:1 debt-to-equity ratio from these respected institutions is also notable. This reflects the strength of Lhoopa’s business and the social impact it provides,” the startup said in a press statement.
Founded in 2018, Lhoopa enables the large-scale development of affordable homes in the Philippines by leveraging data and technology, and engaging stakeholders through a decentralized approach.
The new capital will enable the company to expand in the Philippines and to other emerging markets, strengthen its technology capabilities to better support partners, and launch its green housing options. Additionally, the company will hire more executives, senior managers, and product developers.
To date, Lhoopa has sold over 2,500 affordable houses in over 58 cities in the Philippines, and expanded its team from 30 to 95 employees. It aims to provide over 15,000 affordable homes over the next three years.
Marc-Olivier Caillot, founder of Lhoopa, said: “This funding marks a pivotal moment for Lhoopa as we scale our operations to meet the growing demand for affordable housing in Southeast Asia. Our dream is to create a much-needed paradigm shift in real estate. Toward this end, as a proptech, our unique model of leveraging technology and local partnerships allows us to deliver quality, affordable homes quickly and efficiently.”
Sabrina Tan, president and co-founder of Lhoopa, said: “Our mission is to solve the problem of affordable housing and provide access and opportunities for financial growth to local partners, and this funding will enable us to accelerate our efforts. We are grateful for the continued support of our investors and partners, which validates our vision and strengthens our resolve to bridge the housing gap in emerging markets.”
