TrueHome

About TrueHome

TrueHome, established in 2017 by founders Raúl Villarreal and Álvaro Cepeda, operates as a technology-driven real estate brokerage in Mexico. The company initially launched as an iBuyer, making direct cash offers on homes, but pivoted in January 2018 to focus on brokerage services. This strategic shift was driven by the realization that incorporating technology into the brokerage process could address significant market inefficiencies, such as the lack of transparency and reliable data that often hindered consumers.

Prior to founding TrueHome, CEO Raúl Villarreal was an associate at venture capital firm Mountain Nazca, which provided him with valuable insights into the startup ecosystem and investment landscape. This background likely influenced the company's direction and ability to secure funding. TrueHome's business model centers on simplifying the home buying and selling process for residential clients. It functions as a digital real estate platform, providing services that include professional property photos, virtual tours, legal advice, and guidance from salaried real estate experts. This approach aimed to professionalize the brokerage experience and eliminate issues like duplicated or fraudulent listings common in the Mexican market.

The company generates revenue by taking a percentage of each transaction facilitated through its platform. It implemented a commission structure, typically charging a 3% fee for transactions it executes directly. Before its acquisition, TrueHome successfully raised over $10 million through multiple funding rounds, including a $1.3 million seed round and a subsequent $8.8 million Series A round co-led by Monashees and Class 5 Global. In November 2021, the Brazilian proptech giant Loft acquired TrueHome for an undisclosed amount in cash and stock, marking Loft's international expansion into Mexico. Villarreal and Cepeda remained to lead the Mexican operations, which were eventually rebranded to Loft in September 2022.