Investment to drive expansion and support strategic initiatives
- Expansion and Strategic Initiatives: Lhoopa will use the funds to increase its presence in the Philippines and enter new geographies, strengthen its technology systems to better support partners, and launch its green housing options.
- Strategic Equity Investors: The funding round was co-led by the World Bank Group’s International Finance Corporation and Wavemaker Partners, with support from other prominent investors like Pavilion Capital, 10X Group, and Concentric Equity Partners.
- Milestone Debt Raise: Lhoopa’s fundraise is unique because of its unprecedented blend of equity and debt. The US$20 million equity round has enabled the company to secure the commitment for US$60M worth of debt facilities from development finance institutions like the Asian Development Bank and the United States International Development Finance Corporation, as well as Lendable, a leading provider of debt financing to fintechs in emerging markets.
MANILA & SINGAPORE, 16 JULY 2024 – Lhoopa, the innovative proptech company revolutionizing affordable housing in emerging markets, today announced the successful completion of its US$80 million funding round. This is one of the biggest funding rounds 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, US$20 million was in the form of equity, which was co-led by the World Bank Group’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 Coins.ph). Existing investors Patamar Capital and Tekton Ventures also joined this round.
The equity round facilitated the commitment of US$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.
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. With the support of our investors and financing partners, we are poised to make a significant impact on the affordable housing market and improve the lives of countless deserving families.”
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.”
“IFC is proud to partner with Lhoopa for the development of sustainable and affordable homes for more Filipinos,” said Jean-Marc Arbogast, Country Manager for the Philippines at IFC. “With this new partnership, we hope to help close the gap in affordable housing and promote inclusive development by supporting a company that provides digital solutions to first-time homeowners and improved access to financing for low- to mid-income consumers.”
Paul Santos, Managing Partner at Wavemaker Partners, said: “Affordable housing is not typically seen as a venture play, but we believe Lhoopa is solving a long-standing problem that will only worsen unless it is addressed. Currently, the Philippines has an affordable housing backlog of over 6.5 million, projected to reach 22 million by 2040. Lhoopa is demonstrating that with boldness, innovation, and differentiated execution, affordable housing can be both profitable and impactful.”
“Our collaboration with Lhoopa represents a strategic partnership that aligns with our shared vision for poverty reduction and sustainability,” said ADB Director General for Private Sector Operations Suzanne Gaboury. “Our innovative financing structure, a revolving facility with credit limit step-ups linked to performance, is tailored to the unique business needs of a rapidly expanding company. This is also ADB’s first affordable housing transaction with the private sector in the Philippines.”
Suresh Samuel, Managing Director and Head of Fintech Investments at Lendable, said: “Since closing our initial transaction with Lhoopa in late 2022, we have grown our partnership with the company as it has scaled. Lhoopa serves as a great example of the type of company we want to work with – a globally ambitious business addressing a core impact need, in this case access to affordable housing for a highly underserved population. We are excited to see the success Lhoopa has shown to date and look forward to deepening our relationship going forward.”
Lhoopa continues to value its existing partnerships and is open to establishing new collaborations across various sectors, including private and public institutions. The company is dedicated to growth, creating meaningful change, and achieving success in collaboration with partners who share its mission and commitment to the Filipino people and beyond.
Lhoopa’s vision for the future is ambitious and clear: to revolutionize affordable housing across Southeast Asia. With the new funding, the company is poised to accomplish and exceed its goals, setting new benchmarks in affordable housing and technological innovation. Lhoopa invites partners and stakeholders to join it on this transformative journey as it redefines the real estate landscape and uplift communities.
About Lhoopa
Lhoopa is a property technology venture that leverages the powerful blend of people and technology to address the affordable housing backlog in emerging markets. Founded in 2018, Lhoopa uses data, AI, and other advanced solutions to empower its network of local partners, including property contractors and agents, making every stage of affordable housing more efficient. This decentralized approach enables the rapid deployment of affordable homes at scale, uplifting communities and significantly contributing to sustainable development goals. To find out more, visit http://lhoopa.com.
