To make up Brazil’s shortfall in affordable housing, the government program, Minha Casa, Minha Vida, for “My Home, My Life,” helps developers and households finance new construction. Makasi, provides credit for up to 80% of the construction costs for small and medium-sized developers and individual households to tide them over before public funding kicks in.
The startup raised a second 120 million reais ($21 million) round structured as a real estate receivables certificate, which is debt backed by future rent and mortgage payments. Makasi raised its first round just six months ago.
Social housing
The funding will be used as a credit line, called Credit for Exposure of Caixa MCMV, for low to middle-income households with annual incomes of around 96,000 reais ($17,000), and will prioritize women-led households and vulnerable groups. The government’s MCMV program was recently expanded to provide subsidized financing to nonprofits to construct houses for the families they work with.
“Credit for these families via private banks or capital market resources was not viable,” said Makasi’s Caio Bonatto. “The launch of this new range will bring a boost to middle-income housing in Brazil.”
The startup aims to finance around 10,000 housing units which will serve around 40,000 people. It says it has financed over 2,800 homes in Brazil.
