(L-R) Homebase co-founders Phillip An and JunYuan Tan
Homebase, a proptech company in Vietnam, has attracted US$30 million in equity and debt funding from a host of investors, including Y Combinator and its CEO Michael Seibel, Partech Partners, Goodwater Capital, Ace and Company, Emles Advisors and Foundamental.
VinaCapital Ventures, Brian Ma (co-founder of Divvy Homes), Troy Steckenrider III (ex-COO of Zerodown), and Darius Cheung (founder of 99.co), besides operators and executives from SoFi, Opendoor, Republic, Microsoft, Instacart, Abu Dhabi Investment Authority, and Binance also co-invested.
Southeast Asia is the world’s fastest-growing real estate market. However, it has become one of the least affordable as it takes longer than two decades for the average millennial to save up for their first home in Vietnam. Even during COVID-19 lockdowns in Q3 2021, average landed property prices grew about 3-17 per cent YoY, according to global real estate consultancy CBRE.
Also Read: Owning a house in Vietnam is no longer a distant dream, thanks to Homebase
Traditional bank mortgage options now require a loan-to-value ratio of up to 50 per cent with 13 per cent yearly interest rates. This, coupled with growing property prices, has increasingly placed homeownership out of reach for anyone other than high net-worth individuals with stable incomes.
Started by JunYuan Tan and Phillip An, Homebase aims to make homeownership accessible across Southeast Asia by providing an alternative to traditional mortgage financing.
Its flagship co-investment product buys homes upfront for clients, allows them to move in and buy back anytime. Clients can fully buy out when they are ready, or walk away and cash out their savings.
How it works:
- Clients choose any home they like, or Homebase can recommend an agent to help find one,
- Homebase then buys the home in cash; clients need to make a minimum 20 per cent deposit,
- Clients can move in, renovate, or rent out their home as they wish,
- Each month, clients deposit a fixed amount that builds their home savings; there’s no rent, interest, or other monthly fees,
- At any time, clients can choose to fully buy out their home when they’ve deposited 100 per cent of the pre-agreed price; or, they can walk away and cash out their savings.
The first Vietnamese company to be selected for the Y Combinator programme, Homebase is set to develop its proprietary technology further, launch additional partnerships with real estate developers and agents, and increase its talent base in the coming months.
Also Read: Homebase bags 7-figure pre-Series A round to expand property financing platform in SEA
Its mission is to empower homeownership for 100,000 families across Southeast Asia.
Less than a year ago, Homebase announced the closing of a “seven-figure USD” pre-Series A round from investors, including VinaCapital, Class 5 Global, Pegasus Technology Ventures, 1982 Ventures, and Antler.
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Image Credit: Homebase
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