Lhoopa secures $80 million for expansion and innovation

Lhoopa, a leading proptech firm based in the Philippines, has successfully completed an $80 million funding round, marking a significant milestone for the company. The funding includes $20 million in equity, co-led by the International Finance Corporation (IFC) and Wavemaker Partners. Other notable investors include Pavilion Capital, 10X Group, Concentric Equity Partners (CEP), Mirath Investments from the UAE, and NataRock Partners Fund from the US.

Among the distinguished contributors are Steve Melhuish, Co-founder of PropertyGuru Group and Founding Partner of Wavemaker Impact, Black Kite Capital, and Ron Hose, Co-founder of Coins.ph. Existing investors Patamar Capital and Tekton Ventures also participated in this funding round.

In addition to the equity investment, Lhoopa has secured $60 million in debt facilities from prominent development finance institutions. This includes contributions from the Asian Development Bank (ADB), the United States International Development Finance Corporation (DFC), and Lendable, a key provider of debt financing to fintech companies in emerging markets.

The new capital will drive Lhoopa's expansion efforts across the Philippines and other emerging markets, enhance its technological capabilities, and support the launch of its green housing initiatives. The company plans to recruit more executives, senior managers, and product developers to support its growth.

To date, Lhoopa has successfully sold over 2,500 affordable homes across 58 cities in the Philippines and has grown its workforce from 30 to 95 employees. The company aims to provide over 15,000 affordable homes within the next three years.

Marc-Olivier Caillot, Lhoopa’s Founder, described this funding as a crucial step in scaling the company's operations to address the increasing demand for affordable housing in Southeast Asia. "Our goal is to transform the real estate landscape by leveraging technology and local partnerships to deliver high-quality, affordable homes efficiently," Caillot said. "With the support of our investors and financing partners, we are set to make a significant impact on the affordable housing market and improve the lives of many families."

Sabrina Tan, President and Co-Founder of Lhoopa, emphasized that this funding will accelerate their mission to address the affordable housing crisis and provide financial opportunities for local partners. She highlighted that the backing from investors reinforces their commitment to closing the housing gap in emerging markets.

Founded in 2018, Lhoopa utilizes data and technology to facilitate the large-scale development of affordable homes in the Philippines, engaging stakeholders through a decentralized approach.

Jean-Marc Arbogast, Country Manager for the Philippines at IFC, noted that the partnership with Lhoopa aims to bridge the affordable housing gap and support inclusive development through digital solutions and improved access to financing.

Paul Santos, Managing Partner at Wavemaker Partners, acknowledged that while affordable housing is not traditionally viewed as a venture capital opportunity, Lhoopa is addressing a critical issue with innovative solutions. "The Philippines faces an affordable housing deficit of over 6.5 million, projected to reach 22 million by 2040. Lhoopa’s approach proves that affordable housing can be both profitable and impactful," he said.

Suzanne Gaboury, ADB Director General for Private Sector Operations, highlighted that their collaboration with Lhoopa aligns with their goals of poverty reduction and sustainability. "Our financing structure, which includes a revolving facility with performance-linked credit limit step-ups, is tailored to meet the needs of a rapidly growing company," Gaboury noted.

Suresh Samuel, Managing Director and Head of Fintech Investments at Lendable, praised Lhoopa for its ambition and impact. "Since our initial transaction with Lhoopa in late 2022, we have expanded our partnership with the company as it has scaled. Lhoopa exemplifies the type of business we aim to support—one that addresses a critical need for affordable housing in underserved communities," Samuel said.