According to Endeavor's research, startups and scaleups operating in the Mexican PropTech industry have been classified and defined as follows:

Overview of PropTech Companies in Mexico

Brokerage Services

• Provide digital platforms or services that facilitate the connection between buyers and sellers to make transactions without the need for a broker
• The sub-industry in Mexico is highly concentrated, with 26 startups currently operating, offering B2C and B2B models
• Compared to INEGI's information, Endeavor's data collection only represents 1.7% of the market's transactions. However, this low penetration rate presents a growth opportunity. The total GMV (Gross Merchandise Value) sales reported by 20 startups were US$948M, with 564,393 units currently available in Mexico.

Hospitality

• Provide innovative solutions and services to improve the customer experience and increase the efficiency of the businesses in hotels, resorts, restaurants, and other travel-related services. These services can include booking, property management, guest experience, delivery services, and sustainability initiatives.
• There are 16 startups identified operating in Mexico, 80% founded within the country and 20% are from United States and the United Kingdom
• Based on data from the Ministry of Tourism and the surveyed entrepreneurs, the industry representation is only 0.2%. Furthermore, the surveyed startups reported an average hotel occupancy of 73% against an average of 56.7% reported by the Ministry of Tourism.

Financing

• These startups provide financial services to the real estate sector using technology to innovate in financing solutions such as:
  • iBuying: Standing for “instant buying”. Involves the use of technology to purchase homes quickly and efficiently.
  • Crowdfunding: A funding method that involves raising capital for a specific project (in this case of real estate), venture, or cause by small contributions from a large number of individuals, through an online platform.
  • Rent to own: To rent a property with the opportunity to purchase it at a later date.
  • Rent payment solutions: Make innovative solutions to provide property owners flexibility and convenience
• Financing is the sub-industry that has raised the greatest amount of funding over the years, with 15 companies in Mexico.

Commercial Management Services

• Commercial management service offer services such as short-term, long-term and coworking leasing solutions, in addition to portfolio management.
• Currently, there are 10 companies operating in this sub-industry.
• There is a clear opportunity for startups and businesses to capitalize on the increasing demand for leasing services such as short-term rentals, long-term rentals, coworking spaces, and portfolio management.

Residential Rental Services

• These companies or platforms facilitate the process of renting residential properties.