Libeen, a Madrid-based startup focused on a smart-housing model, has raised €25 million in a funding round led by Andbank through MyInvestor and Actyus. The financing aims to support its national expansion, integrate AI-driven technology, and acquire strategic properties in key Spanish cities. The company’s approach offers an alternative to traditional homeownership, enabling tenants to gradually build equity while renting. As demand for flexible housing solutions grows, Libeen seeks to scale its operations and increase accessibility to homeownership.
Earlier reports on Libeen’s expansion efforts highlighted its steady growth in Spain’s real estate market. The company’s previous funding rounds have enabled the acquisition of properties and the development of its AI-powered platform, which streamlines the homeownership process. Compared to earlier phases, the latest funding positions Libeen for faster scaling and a broader customer reach. Additionally, previous statements emphasized the company’s focus on young buyers, a demographic it continues to target with its latest expansion plans.
What will the funding be used for?
The newly raised capital will allow Libeen to accelerate its expansion in major Spanish cities and support over 130 families in securing housing in the coming months. The company aims to grow significantly by the end of 2025. Additionally, an effort is underway to secure an extra €100 million in funding, which would enable the purchase of more than 600 homes. These acquisitions will help expand Libeen’s property portfolio and strengthen its presence in Spain’s housing market.
How does Libeen’s smart-housing model work?
Libeen’s smart-housing model allows tenants to allocate a portion of their rent towards future homeownership. Customers initially deposit 5% of the property’s value and make monthly payments, with about one-third of each payment contributing to savings for a future mortgage. Between three to seven years, participants can transition to full ownership by securing a mortgage, removing the need for a traditional 20% down payment.
“Smarthousing offers flexibility, as tenants can gradually build equity using their monthly rent while living in their homes. Compared to mortgages, it removes the need for a 20 percent down payment and simplifies the process with AI-driven approvals, making homeownership more accessible,” said Libeen founders José Manuel Cartes and Sofía Iturbe.
The approach is designed to remain resilient against fluctuating interest rates, as the company secures long-term fixed-rate financing to stabilize costs. By focusing on high-demand locations, Libeen aims to maintain a consistent customer base despite market fluctuations.
AI’s role in streamlining homeownership
AI technology plays a crucial role in Libeen’s operations by analyzing real estate opportunities and assessing financial profiles. The system evaluates properties in real-time based on appreciation potential, risk level, and rental demand. It also offers personalized financial assessments for customers, tailoring solutions based on income, credit history, and property preferences.
“Our system analyses properties in real-time, identifying homes with the best appreciation potential, low risk, and high rental demand. On the customer side, we personalise financial assessments, offering tailored solutions based on income, credit, and property preferences,” said Iturbe.
Since its inception, Libeen claims that 100% of its clients have successfully secured mortgages through its smart-housing program, with an average savings of over €50,000. The company also emphasizes digital onboarding and social media marketing to attract Millennial and Gen Z buyers.
Challenges in expansion and financial sustainability
Libeen plans to expand beyond Madrid by entering new cities across Spain. However, moving into international markets presents challenges due to regulatory differences, financing structures, and local property market conditions. Collaborating with banks and investors will be essential for international expansion.
“That’s why partnering with local banks and investors will be key when scaling internationally,” said Iturbe.
Revenue generation comes from SmartHousing monthly payments, which are competitive with market rental prices while covering financing costs. The company also collaborates with institutional investors to scale its property portfolio efficiently.
“Our AI-driven underwriting ensures we buy high-value, high-appreciation homes, reducing risks and increasing margins. Additionally, institutional capital and real estate investors partner with us, allowing for efficient portfolio scaling,” said Cartes.
Libeen’s model reflects broader trends in alternative housing solutions, which have gained attention amid increasing homeownership barriers. While smart-housing provides flexibility, its long-term success will depend on market conditions, regulatory factors, and customer adoption. The integration of AI-driven decision-making adds efficiency, but challenges remain in scaling beyond Spain. As the company continues its expansion, its ability to balance growth, financial stability, and regulatory compliance will determine its future trajectory.
