Kenya’s Patamali wants to revolutionise real estate financing through DeFi

Kenya’s Patamali has developed a groundbreaking decentralised finance (DeFi) platform operating on the Celo blockchain that aims to revolutionise the real estate financing space.

Founded by Laura Omanga and Allan Musomba Mulei in November 2021, Patamali was born out of a passion to provide accessible financing solutions, ensuring that individuals and businesses have the opportunity to access capital while enabling investors to diversify their portfolios. 

Its innovative approach involves tokenising real estate assets as non-fungible tokens (NFTs) and locking them into liquidity pools, providing asset originators with immediate capital based on the value of their assets.

“Our journey began with a deep-rooted belief in the power of decentralization and blockchain technology,” said Omanga. “We envisioned a financial ecosystem that would be transparent, inclusive, and efficient, empowering individuals, institutions, and asset originators to unlock the value of their real estate assets and participate in peer-to-peer lending and investment opportunities.”

What Patamali believes sets it apart is the introduction of liquidity to the traditionally illiquid real estate market. 

“By tokenising assets and offering tranches within our liquidity pools, investors have the flexibility to tailor their investment strategy to align with their risk appetite and desired returns. We offer senior and junior tranches, each with distinct risk and reward profiles, ensuring a range of options for our valued investors,” Omanga said.

“Transparency, efficiency, and security are the pillars of our operations. Built on the Celo blockchain, our platform guarantees transparent and fast settlement of transactions, allowing users to track their investments, interest earnings, and portfolio performance effortlessly. We want our users to have complete trust and confidence in every transaction they make on our platform.”

Patamali token (PML) holders play an active role in shaping the future of the platform. 

“They can stake their tokens, participate in voting on crucial decisions, propose improvements, and contribute to the development of a decentralised and community-driven ecosystem. Token holders also have access to exclusive platform features and may receive rewards for their active participation,” said Omanga.

“Our target market encompasses a diverse range of individuals and institutions seeking alternative investment options, secure lending opportunities, and access to liquidity. We cater to asset originators, including real estate developers, SMEs, and individuals holding valuable assets. Additionally, we attract investors, both retail and institutional, who are looking for diversified investment options with competitive returns within the DeFi space.”

Patamali generates income through asset origination fees charged to asset originators based on the capital they borrow by locking their real estate assets into its liquidity pools. 

“Borrowers accessing capital through our platform also contribute to our revenue stream through fees or interest on the amount borrowed. Additionally, we may charge investors management fees for facilitating their investments and offer token-related services or premium features exclusively available to our valued token holders,” said Omanga.

Since its inception, Omanga said Patamali had experienced “remarkable uptake”, with a growing number of individuals and institutions embracing its platform as a trusted and efficient means of financing real estate assets. 

“The positive response from the market validates our value proposition and reinforces our commitment to meet the diverse needs of asset originators and investors,” she said.

“The overall uptake of Patamali has been promising, with increasing user adoption, successful grant financing deals, and positive market feedback. We remain dedicated to continuous improvement, innovation, and delivering value to our users as we strive to further expand our presence in the market.”

The startup has thus far secured funding through the Tao Architects Foundation grant programme, which provided the necessary capital to develop its mobile platform and ensure a seamless and user-friendly experience for users.