Houstep

About Houstep

Houstep is a proptech company operating in the South Korean interior remodeling market, functioning as an online platform for individual construction services. Established on March 18, 2016, the company has positioned itself to address the traditionally opaque and fragmented nature of the interior construction industry by offering standardized, transparent pricing for a range of services. The business model centers on disaggregating full-scale interior remodeling projects into specific, individual services such as wallpapering, flooring, bathroom remodeling, and window installation. This allows customers to select and purchase only the specific services they need, providing greater flexibility and cost control compared to conventional all-in-one renovation packages.

The company's primary clients are individual homeowners and tenants seeking to partially or fully renovate their living spaces. Houstep makes money by connecting these clients with a network of vetted construction professionals and managing the process, likely taking a commission or fee for each completed project. They have also signaled an intention to expand into the B2B sector. The platform's key feature is its upfront pricing, which demystifies costs for consumers and introduces a level of transparency uncommon in the market. By moving the transaction process online, Houstep streamlines the customer experience, from selection to project completion.

Houstep has demonstrated significant growth, indicating strong market acceptance of its model. In 2020, the company reported a revenue of 11.8 billion KRW, a threefold increase from the previous year, with construction projects growing by 68% in the same period. This growth trajectory has attracted notable venture capital investment. In January 2019, the company secured a 3 billion KRW Series A funding round from SV Investment and GS Home Shopping. This was followed by a larger 11 billion KRW Series B round in April 2021, with participation from Stonebridge Ventures, LB Investment, and SV Investment, bringing its total known funding to at least 14 billion KRW. These funding rounds underscore investor confidence in Houstep's potential to digitize and capture a significant share of the South Korean home renovation market, a sector that has seen increased interest, partly influenced by the effects of the COVID-19 pandemic.