Monific
Fractional real estate investing for the tourism industry
Together with:
In the wake of Mexico's Fintech law, a wave of entrepreneurs began transforming how we handle and invest our money.
Some are focused on building paths to markets we thought were distant, and others are opening up new opportunities for those without access to banking.
Let's dive in.
Imagine this
You just started investing and building your long-term portfolio.
After investing in bonds, ETFs, and stocks, you want to diversify and add alternative assets.
Top investors recommend real estate as the best alternative asset class.
However, the high entry costs and your need for more knowledge about the market make you unsure.
After scrolling the web, you come across Monific, a crowdfunding platform that allows you to invest in pre-vetted real estate properties.
Explain it like I'm five
Monific is a real estate crowdfunding platform that offers fractional investment opportunities in tourist properties across Mexico.
Users can invest with as little as $1,000 pesos.
Property owners can list their properties on Monific’s platform, and after an internal due diligence process, they enable their users to invest in them.
By investing in the platform, users can boost their earnings by referring guests to the hotels and also enjoy benefits while staying in them.
Monific's team aims to increase access to real estate investment in Mexico’s tourism industry.
The ABCs
Industries: Proptech, Fintech
Headquarters: Mexico City, Mexico
Year Operations Started: 2018
Team Size: 28
Raised: US $500,000 (Pre-seed)
Investors: Snowball
Business Model: Commission-based
Other players:
Background check
What we like:
Trend: Mexico's tourism industry is experiencing remarkable growth. More than 38M international tourists visited the country in 2022. That is 6M more than in 2021, representing an increase of around 20.3%.
Niche: We've seen various crowdfunding startups in real estate, but none that focused on tourism. By specializing in this specific field, they can understand the market well and, at the same time, reduce their risk.
Investment: The Ministry of Tourism (Sectur) announced that Foreign Direct Investment in Tourism reached historical records of US $3.4 billion in 2022. The increase in FDI is a positive sign for the Mexican economy and Tourism companies and properties.
Traction: They have helped fund over 18 projects and generated over US $1.3M of revenue for their investors. Monific has over +15,000 active users on their platform that have joined organically.
Road Blocks:
Liquidity: If many investors decide to withdraw or sell their shares simultaneously, it might pose liquidity challenges for Monific. Also, real estate is not considered the most liquid asset and can make it difficult to convert into cash.
Treasury Bonds: Many investors are avoiding alternative investments due to the high treasury bond yields (CETES) that enable investors to earn around 12% annually. Investments through Monific return 14-16% annually, but they come with added risk.
Trust: They've secured a license from the CNBV, a major step in building investor confidence. However, investors still require further education and guidance to earn trust. Regarding crowdfunding platforms, people tend to be more careful due to liquidity issues.
The Architects
Ted Senado, Founder & CEO.
Request intro with the founder by sending an email to gabriel@readrunway.com
Together with ELM
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They provide state-of-the-art solar panels for commercial and industrial enterprises, enabling substantial cost savings without any upfront investment.
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Contact David Cantu at david@energiaslimpiasmx.com to learn more about their clean energy services.
Headlines Corner
Klar secured a US $100M credit line to strengthen its operations in Mexico. (Businesswire)
Jeeves is shifting its business focus towards cross-border payments, aiming to enhance its expertise in facilitating international transactions. (Contxto)
Wonder Brands secured US $20M to boost Latin American e-commerce. (Whitepaper)
Cube Ventures and Arkangeles have joined forces in a strategic alliance to provide robust support for startups in LatAm. (Arkangeles)
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