IDB Invest Grants US$24.4 Million to Xante

The Interamerican Development Bank’s (IDB) investment branch IDB Invest provided a convertible loan of up to MX$500 million (US$24.4 million) to the proptech company Xante. The company will use the resources to expand its business, supporting the housing deficit in low to middle-income segments.

The project is described as providing a solution to the housing deficit by strengthening transparency and efficiency in the secondary housing market. The initiative is expected to contribute to a more efficient and equitable use of existing housing, says IDB Investment. 

Xante is a proptech subsidiary of housing developer Vinte, specializing in the purchase and sale of used homes in the low and middle-income segments. The convertible loan will enable Xante to expand its business, which focuses on acquiring, maintaining, and refurbishing used homes. Approximately 45% of the homes sold by Xante belong to the social interest segment.

The homes acquired by Xante are renovated by independent contractors, many of whom are MSMEs. Expansion of Xante's business is expected to increase demand for the services and products of these contractors, potentially supporting the growth of national MSMEs. Anticipated benefits also extend to independent intermediaries involved in property buying and selling. The financing supports Xante's model of renovating and reselling used homes to address housing needs and stimulate related economic activity.