Duppla, the Colombian proptech founded in 2020 by Cristian Villamizar and Felipe Fierro, closes a US$60 million round between debt and equity to scale its rent-to-own in Colombia. The operation, led by Patria Investments, marks the manager’s first venture capital investment in the country. In addition, it adds Skandia Financial Planning, Cometa, Grupo Pegasus and Nazca as new investors.
The Duppla model was born from a specific premise. In Colombia, only 3% of adults have an active mortgage. However, the problem is not the ability to pay, but rather that the financial system is not designed for that segment. The company buys the home that the client selects and then rents it out. In addition, you sign a promise of sale that can be executed within a period of up to five years.
The initial fee starts at 15%, compared to the 30% that traditional banking usually requires. Likewise, the approval process takes about five days and considers informal income. Thanks to this, independent workers, entrepreneurs and young families today represent 64% of its clients.
On the other hand, each property remains in an autonomous estate managed by a fiduciary. In this way, the structure provides legal support to both families and investors.
A model with two faces
Duppla not only finances housing. In addition, it securitizes the rental flows of its portfolio and converts them into an investment product for institutions seeking exposure to residential rentals.
In fact, that mechanism attracted Skandia before this round. In 2023, the insurer acquired 90% of the company’s residential portfolio. Thus, it validated the structure before the institutional market.
“When we started, we wanted to demonstrate that it was possible to build a different path to access housing. Today this round represents a vote of confidence from institutional investors in a model that was born to solve a real need in the Colombian market,” said Cristian Villamizar, co-founder of Duppla.
Patria bets on Colombia and Medellín joins the map
Patria Investments’ decision marks its debut in Colombian venture capital. In addition, it sends a signal about the growing interest of institutional capital in alternative models of access to housing.
“This investment reflects our confidence in the potential of the country’s entrepreneurial ecosystem,” said Diego Chona, Partner and Head of Private Equity Latam ex-Brazil of Patria.
With the new resources, Duppla will expand its financing capacity and accelerate its geographical expansion. Medellín will be the next market in its growth plan. The company plans to reach 1,500 families by the end of 2027. If achieved, it will have more than quintupled the 300 families it supported during its first four years of operation.
