Mudafy Raises $10 Million in Series A Led by Founders Fund to Fix ‘Broken’ Real Estate Process in Latin America

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MudafiA high-tech real estate broker operating in Latin America has raised $10 million in a Series A funding round led by the San Francisco-based Founders Fund.

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Mudafy, founded in mid-2019, uses 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.

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The startup, also backed by Y Combinator, says its site has over 50,000 listings and over 1 million unique monthly active users in Argentina and Mexico. He claims to complete over 100 real estate transactions per month and currently originates over 50% of mortgages for his clients.

“This is the start of a larger move in fintech, and at the same time it improves access to the best properties for clients,” he said. CEO and co-founder Franco Forte.

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Mudafy’s goal with its new capital, among other things, is to generate $500 million in annual sales by the end of the year. Forte says 2021 is overover $100 million in real estate sold” and maintained a solid rise of more than 20% from the previous month. Overall, he added, in 2021 the company increased its sales “10 times” for the second year in a row.

Today, he says, Mudafy operates at a frequency of “more than 2x” compared to 2021.

The startup income model is based on success rewards or commissions. When he sells real estate, he charges a commission. It also generates income from each issued mortgage loan.

With the new capital, Mudafy’s immediate priority is to expand its presence in other cities in Mexico, a market the company entered in 2020. is exploring the possibility of entering other Latin American markets such as Colombia, Peru and Chile.

FOrte believes Mudafy’s product-centric approach makes it stand out in an increasingly crowded space.

“We’ve rebuilt the entire experience by rebuilding the entire service stack,” he told TechCrunch, noting that the Mudafy team had previously been developing products for the real estate industry for over a decade.

Its customer-facing product includes features that are common in the US but much less so in Latin America, such as virtual 360-degree tours, online booking of impressions and ratings, and real estate price data. He also created an in-house product that he says helps agents be 10 times more efficient than traditional realtors.

Image credits: Mudafi

Ultimately, Mudafi says, his ultimate goal is to help people close their homes faster and for less money.

Of course, in Latin America, the problems of buying and selling a house require much more time and complexity than in the United States. Without MLS, consumers have no access to public data and therefore no transparency. This is where Mudafy hopes to make a difference with 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 employees with new capital. The company is not yet profitable as it continues to invest in its technologies and products, but Forte says Mudafy was “super capital efficient” and that its unit economy is “healthy and positive”.

In total, the startup raised $13 million. IDC Ventures also took part in the latest funding round.

Amin Mirzadegan, director of the Founders Fund, believes that The process of buying and selling homes in Latin America is “disrupted”, with an average sales cycle of more than six months.

“From day one, Mudafy has been focused on providing homebuyers with a seamless buying experience rather than diving straight into online shopping, renting, etc.,” he wrote in an email. “Agents are an important part of the ecosystem. Mudafy is creating technology that not only helps buyers, but also improves the efficiency of agents and their ability to serve potential buyers.”

Interestingly, Keith Rabois is the general partner of the Founders Fund and also the co-founder of Opened door, a publicly traded real estate technology company operating in the US.

It is worth noting that other Latin American digital brokerages such as Loft and QuintoAndar have conducted layoffs this year. To this, Forte said, “I believe the layoffs at Loft and QuintoAndar are more reflective of the fundraising environment than the real estate market itself. The market is extremely large, there is room for multiple players, and buyers/sellers want a better experience… If the downturn affects the market, it won’t affect proptechs. Instead, it will likely affect traditional real estate brokers.”

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