Dealflow | April 11, 2019

Adobe Capital, IGNIA exit Mexican home rehab startup Provive

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, April 10 – Tijuana, Mexico-based Provive’s mission is to foster community regeneration. Its approach is to acquire abandoned homes, fix them up, then help families secure financing to buy them. 

Early stage impact investor Adobe Capital has exited and venture capital firm IGNIA has partially exited its investment in Provive, following Provive’s recent debt funding round backed by an unnamed international bank.

IGNIA invested MX$44 million ($3.3 million) in Provive in 2011 via its $102 million first fund. Adobe Capital invested four years after IGNIA via its Adobe Social Mezzanine Fund I.

Adobe provided acceleration support to Provive through its New Ventures Platform, and joined the company’s board. In the intervening years, the company has restored more than 6,600 homes and housed more than 30,000 individuals—a roughly 4.5-fold increase from when Adobe invested. 

Provive also saw five-fold revenue growth over the same period, Adobe’s Rodrigo Villar told ImpactAlpha.

Adobe’s divestment from Provive is the second exit from its Adobe Social Mezzanine Fund I, following its 2017 divestment from NatGas, a company that helps taxis and busses convert to natural gas. For IGNIA, the partial divestment allows the investment firm to repay debt to the Inter-American Development Bank.

“Provive has proven to be a highly successful company in the field of urban regeneration of low-income communities,” IGNIA’s Fabrice Serfati said in a statement, adding that the firm’s exit “confirms our investment thesis of supporting companies focused on the emerging middle class.”

Provive operates in Tijuana, Juarez, Mexicali and Hermosillo, and partners with Fundación Tu más Yo to provide ongoing community services and support where its homes are based.