- Lhoopa raises $80M to boost affordable housing in the Philippines using AI.
- The startup partners with local brokers and contractors to identify undervalued properties.
- Lhoopa aims to expand in the Philippines and other Southeast Asian countries with the new funding.
Building dreams, one brick at a time
Lhoopa, a Singaporean-headquartered startup, has raised $80 million to tackle the growing problem of affordable housing in emerging markets, starting with the Philippines.
The startup uses a mix of technology and decentralized operations, partnering with local professionals, including brokers and building contractors, to serve people looking to buy affordable homes.
With an unfilled demand of around 6.5 million units for low-income earners in the Philippines, Lhoopa aims to bridge the gap left by traditional developers who focus on luxury houses.
AI-powered house hunting
Lhoopa’s technology platform uses machine learning and AI to analyze market trends based on data from listings created by local agents and other channels.
The startup identifies undervalued properties and sends them to brokers and contractors in its network to ascertain which can be bought, renovated, or built up for potential buyers.
Lhoopa has developed dedicated apps for its broker and contractor partners, enabling them to find buyers, upload progress updates, and coordinate with the head office remotely.
Teamwork makes the dream work
What sets Lhoopa apart is its decentralized approach to real estate. The startup does not have anyone on the ground from its end, relying instead on local brokers and contractors to do the work.
This allows Lhoopa to monitor around 9,000 different areas across the Philippines and identify undervalued properties anywhere in the country. The startup also plans to expand its target customer base to include gig workers who may not have full-time employment.
Lhoopa’s $80 million funding round includes $20 million in equity, co-led by the World Bank’s International Finance Corporation (IFC) and Wavemaker Partners, and $60 million in debt from various development financial institutions and debt providers.
The startup aims to utilize the fresh funding to grow its presence in the Philippines and expand to other Southeast Asian countries within the next 18 months.
To date, Lhoopa has sold over 2,500 affordable houses in more than 58 cities in the Philippines and plans to provide over 15,000 affordable homes in the country alone over the next three years.
