Lhoopa Secures $80M to Boost Affordable Housing in the Philippines

Lhoopa, a Singapore-based startup, has just raised $80 million to build more affordable homes in the Philippines. The company focuses on low-income earners, offering houses priced between $10,000 and $35,000. Traditional developers tend to avoid this market, viewing it as less profitable.

Founded by Marc-Olivier Caillot and Sabrina Tan in 2018, Lhoopa utilizes technology to identify undervalued properties and streamline bureaucratic processes. They collaborate with local brokers and contractors for sales and construction.

Operating without a physical presence, the startup relies on a network of agents and contractors. They have sold over 2,500 homes to date and aim to provide 15,000 more in the next three years.

This funding round consists of $20 million in equity and $60 million in debt. Investors include the World Bank’s International Finance Corporation and the Asian Development Bank. Lhoopa plans to expand beyond the Philippines, targeting other Southeast Asian countries.

Insights: Lhoopa's approach decentralizes real estate by leveraging local expertise and technology to make affordable housing viable. Their model could challenge traditional real estate practices, making homeownership more accessible to those traditionally overlooked by developers.