Lhoopa Revolutionizes Affordable Housing with Tech-Driven Solutions

Lhoopa Revolutionizes Affordable Housing with Tech-Driven Solutions
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The global lack of affordable housing is a growing concern, even in emerging markets with high demand. Traditional developers and real estate firms often focus on luxury homes, avoiding affordable housing due to high operating expenses that reduce profit margins over time.

Lhoopa, a Singapore-based startup, is addressing this issue by leveraging technology and decentralized operations. Founded in 2018 by Marc-Olivier Caillot and Sabrina Tan after moving to the Philippines from the U.S., the startup partners with local brokers and contractors to help people buy affordable homes. Lhoopa's services have launched in the Philippines, where there's an unmet demand for around 6.5 million low-income housing units.

Caillot noted in an exclusive interview with TechCrunch that traditional developers neglect affordable housing because they believe it’s not profitable enough. In contrast, Lhoopa's target demographic includes minimum-wage earners such as blue-collar workers and factory employees, with houses priced between $10,000-$35,000. This is much lower than the usual price range of $100,000 to $20 million for homes in the Philippines.

Using machine learning and AI, Lhoopa's platform analyzes market trends based on data from local agents and other sources. The startup identifies properties for potential renovation or construction and then collaborates with brokers and contractors to make these homes available to buyers. Their technology also digitizes bureaucratic processes to streamline documentation.

Bankston shared that Lhoopa monitors around 9,000 areas across the Philippines to spot undervalued properties. Unlike typical housing marketplaces, Lhoopa doesn’t interact directly with customers but works through local agents who manage services like loan applications and purchase documentation.

Lhoopa has developed apps for brokers and contractors. Brokers can find buyers in real-time, while contractors can upload progress photos and videos for remote coordination. This system allows Lhoopa to pay commissions and contractor fees efficiently.

The startup plans to expand its customer base to include gig workers on platforms like Grab. Recently, Lhoopa secured $20 million in equity and $60 million in debt from various investors, including the World Bank’s IFC, Wavemaker Partners, and the Asian Development Bank. This funding will help expand operations in the Philippines and other Southeast Asian countries, with plans to enter at least one new market in the next 18 months.

With 95 employees and a network of 5,000 agents and 100 contractor groups, Lhoopa has sold over 2,500 affordable homes in 58 Philippine cities. The goal is to provide over 15,000 affordable homes in the country over the next three years.

Jean-Marc Arbogast, IFC's country manager for the Philippines, expressed hope that this partnership would help close the affordable housing gap and promote inclusive development through digital solutions for first-time homeowners and improved financing access for low- to mid-income consumers. Before this round, Lhoopa had raised less than $4 million in equity and $2 million in debt.