Lhoopa, a leading proptech company, announced that it has raised US$80 million in funding, positioning itself to advance affordable housing solutions in Southeast Asia significantly. This recent achievement marks the largest funding round for a startup in the Philippines and ranks among the top in the region for 2024, as noted by CB Insights.
Strategic expansion and technological enhancement
The US$80 million raised consists of US$20 million in equity and US$60 million in debt facilities. The equity portion was led by the World Bank's International Finance Corporation (IFC) and Wavemaker Partners, with contributions from Pavilion Capital, 10X Group, Concentric Equity Partners, UAE-based Mirath Investments, and US-based NataRock Partners Fund. Notable figures like Steve Melhuish and Ron Hose provided additional support.
With this capital, Lhoopa aims to expand its reach within the Philippines and explore new markets. The funds will also enhance the company's technology to better support its partners and introduce green housing solutions. This strategic initiative is supported by debt from development finance institutions such as the Asian Development Bank, the United States International Development Finance Corporation, and Lendable, highlighting the unique nature of Lhoopa's funding strategy that combines equity and debt.
Enhancing local impact and technological capabilities
Since its founding in 2018, Lhoopa has been at the forefront of deploying affordable housing solutions through innovative technology and strategic partnerships. To date, the company has facilitated the development of over 2,500 affordable homes across 58 cities in the Philippines and has grown its team significantly.
Marc-Olivier Caillot, Founder of Lhoopa, expressed his commitment to expanding the company's impact: “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.”
Sabrina Tan, President and Co-Founder of Lhoopa, echoed these sentiments: “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.”
Future vision and enduring partnerships
The support from global partners reflects confidence in Lhoopa's business model and its potential for social impact. Jean-Marc Arbogast from IFC remarked, “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 from Wavemaker Partners highlighted the venture's scope: “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.”
The company's strategic collaborations and innovative financing models tailored to its growth needs demonstrate a commitment to enhancing affordable housing options on a large scale. Lhoopa continues to seek and strengthen partnerships that align with its mission to transform the real estate sector and improve living conditions across Southeast Asia.
