PropTech startup PropHero has successfully raised funding in its latest round, which was co-led by real estate-focused VC Fifth Wall and European early-stage fund Samaipata. Local VCs Jelix Ventures and AfterWork Ventures, who previously invested in the pre-seed round in February, also participated in this round.
The decision to raise funds earlier than anticipated was prompted by the remarkable local growth experienced by PropHero, a digital property investment platform. Co-founders Pablo Gil Brusola and Mickael Roger sought to accelerate the company’s international ambitions and bolster its services. The raised capital will be utilized to further develop an integrated online property investment service, enhance the company’s data models and digital customer experiences, expand partner referral channels in mortgage broking, accounting, and financial advisory, hire new talent, and establish a presence in new international locations.
PropHero aims to revolutionize the way Australian and European investors discover, acquire, and manage investment properties. The startup provides an end-to-end solution, encompassing investment strategy, consultation, and support from personal property coaches, with the goal of disrupting the traditional buyer’s agent market.
Gil Brusola, co-CEO of PropHero, highlighted the platform’s unique combination of data-driven and AI-led insights, complemented by personalized digital user experiences supported by human expertise. He emphasized that PropHero assists clients in building property wealth over time by offering personalized recommendations following a property strategy consultation. The platform simplifies the buying and management process through its network of trusted real estate professionals, who facilitate inspections, offers, financing, and ownership procedures.
PropHero commenced operations in June 2021 and presently employs 40 individuals across Australia, Spain, Argentina, India, and Indonesia. Co-CEO Mickael Roger stated that they have already aided approximately 250 clients in finding investment properties, with the expectation to double that number by the end of 2022. Notably, around 60% of their clients return to purchase additional properties through PropHero, and 80% refer friends and family to the platform.
Despite the challenging market conditions, including rising interest rates and a softening property market, all of PropHero’s investors have achieved positive cash flow and price growth. Roger mentioned that earlier in 2022, they temporarily ceased property acquisitions due to overvaluation concerns but have since resumed operations as rising interest rates have helped stabilize the market.
PropHero’s technology identifies investment properties with high return potential and low risk. Clients can access the platform’s tailored recommendations via a smartphone app, supplemented by the guidance of a personal property coach and a network of property professionals.
Gil Brusola expressed the company’s ambition to globally revolutionize the property investment industry by leveraging digital technology to replace traditional buyer’s agents, making property investment more efficient and profitable. The long-term vision includes providing comprehensive services directly through PropHero’s apps, encompassing property discovery, mortgage financing, insurance, property management, and tax information.
Miguel Nigorra Esteban, partner and European lead at Fifth Wall, expressed their satisfaction in supporting PropHero’s European expansion. He emphasized that while real estate has historically been an attractive asset class, it often appears intimidating and inaccessible, and PropHero’s Buy-To-Let (BTL) model aims to change that perception. Esteban believes that backed by data-backed algorithms and a commendable track record, PropHero is well-positioned to become a global, approachable solution in the real estate investment market.
Alex Khor, co-founder of AfterWork Ventures, commended PropHero for defying the negative sentiment prevailing in the property market and delivering meaningful results to its clients. Venture capitalists, including AfterWork, are particularly excited about innovative startups like PropHero that adopt novel, data-driven approaches to traditionally stagnant industries such as property investing.
