Digital property investment platform PropHero raises $8m to advance global operations

A Sydney-based proptech using data and artificial intelligence (AI) to help investors secure residential property is looking to bulk up operations and expand its international footprint after raising $8 million in a seed funding round co-led by Fifth Wall and Samaipata.

PropHero’s oversubscribed raise also saw participation from venture capital firms Jelix Ventures and AfterWork Ventures, which both participated in the company’s $1.6 million pre-seed funding round eight months ago.

The fresh capital will be used to build an integrated online property investment service, improve the company’s data models and digital customer experience, grow partner referral channels in mortgage broking, accounting and financial advisory, hire for key roles and expand the company’s geographic footprint into new international markets.

PropHero co-founder and co-CEO Pablo Gil Brusola, who started the company alongside Mickael Roger, said the platform was helping clients build and manage investment property portfolios over time.

“After a property strategy consultation with a property coach, our platform shows you personalised recommendations. Then we make it super easy for you to buy and manage that property because we have a network of trusted real estate professionals who help with the inspection, offer, financing and ownership process,” Gil Brusola said.

“Our ambition is to revolutionise the property investment industry globally by using digital technology to replace traditional buyer’s agents and make property investment more time-efficient and profitable.

“Soon, you will be able to access all the services you need as a property investor directly from our apps, such as property discovery, mortgage financing, insurance, property management and tax information.”

Founded in 2021, PropHero provides investors with a full end-to-end solution that includes investment strategy consultation, data-driven analysis and support from a personal property coach. The software analyses millions of data points from real estate in every suburb, with advanced AI algorithms helping identify the best properties for clients to try and maximise return on investment. 

The company also works closely with mortgage broker partners, who refer clients to the platform and benefit from shorter turnaround times between pre-approval and drawdown for loans.

Prior to co-founding the company, Roger was an associate partner at McKinsey leading the data and AI practice serving clients in technology, media and telecommunications. A serial entrepreneur and qualified civil engineer, Gil Brusola grew his previous business - GrowPro - to 200-plus staff in more than 20 countries. 

Roger noted PropHero has helped more than 200 clients find their ideal investment property.

“Around 60 per cent of our clients are returning to buy their second and third properties with us and 80 per cent refer their friends and family,” he added. 

“Importantly, all our investors are achieving positive cash flow and price growth, even as interest rates go up and the broader property market softens, In fact, PropHero’s clients are outperforming the market and this shows we can use data to beat the downturn.”

Earlier this year, PropHero took home two awards at the 2022 Proptech Awards: Startup of the Year and Most Innovative Startup – Consumer.

“We are very pleased to lead the investment in PropHero and help support its European expansion. While real estate has always been one of the most sought-after asset classes, it can be intimidating and inaccessible, and PropHero’s Buy-To-Let (BTL) model helps change that,” Fifth Wall partner and European lead Miguel Nigorra Esteban said.

“Enhanced by its use of data-backed algorithms and an already impressive track record, we believe PropHero is poised to grow into a global, approachable solution in the real estate investment market.”

AfterWork Ventures partner and co-founder Alex Khor added that against a media backdrop of doom and gloom in the property market, PropHero is defying the trend to deliver meaningful results for clients.

“VCs like AfterWork are most excited by innovative start-ups such as PropHero taking novel, data-driven approaches to traditionally stale industries like property investing.”