The proptech ProntoPiso, an online real estate specialist in property chain that guarantees the sale of the house in 90 days, announces that it has received €400,000 of public financing from ENISA, a public institution supporting entrepreneurship and ICF, Institut Català de Finances.
Both entities have lines of loans to support entrepreneurs. In the case of ProntoPiso, the company has received €200,000 from ENISA and €200,000 from ICF. Both amounts are added to the amount of the round of financing with which the company has started, which exceeds €3M.
ProntoPiso, an online real estate company that started operations in Madrid and Barcelona in the month of December 2017, guarantees the sale of homes in 90 days. In case of not closing the sale after that period, the company advances to the client 95% of the market value of the house converting the buyers into cash buyers. That is to say, it is the first proptech of this type that finances its own clients so that they can face the purchase of another new property without the need to borrow from another external entity.
"We are a unique proptech in Spain with a differential value: we are committed to closing the sale of the home within an adjusted period of 90 days and we also assume the financial role, advancing 95% of the market price of the home in case of not sell it," says Andrés Plá, CEO & co-founder of ProntoPiso. "In our business model, customers become cash buyers, that is, they do not need to ask for a loan or mortgage, but they have the certainty of having at least 95% of the price of the house in three months," he adds.
How ProntoPiso works
The company is born in a Spanish residential market in which between 20% and 40% of those who sell their home do so in order to buy a new one. This niche market is known in the Anglo-Saxon market as a property chain. ProntoPiso starts operations with the mission of satisfying the needs of those who seek to sell their home to have liquidity and buy another residence.
The company makes the first assessment of online housing, based on market information and its own intelligent algorithm. Once this estimate is received and if the client is satisfied, a real estate agent contacts the owner to make an on-site visit of the property in order to fix the market value.
The proptech guarantees the sale of the home in 90 days and, if in that period the operation has not been closed, it undertakes to advance to the owner 95% of the market value so that it can face the purchase of another home. Once the sale is closed, the remaining amount is delivered to the owner. In case of selling for less money of the guaranteed ProntoPiso assumes the difference.
This startup started operations with a financing of more than 3 million euros, with the support of Antai, Global Founders Capital - a venture capital fund with more than 1,600 million dollars in management, Picus Capital, Global Growth Capital, ENISA (National Company of Innovation) and ICF (Institut Català de Finances) complete the list of investors.
The above article was written and published in Spanish and has been translated into English. Click here to read the original article.
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