In a major consolidation in the online reality space, PropTiger.Com and Housing.Com today announced a merger to create India’s largest online real estate services company and the joint entity is most likely to raise USD 55 million from the fresh investment.As part of the transaction, the online real estate advertising firm REA Group Limited will invest near about 340 crores INR ($50 million) in the joint entity, wherein an affiliate of SoftBank Group Corp will make an investment of worth 5 million USD. The respective merge in an all-stock deal will boost quicken the pace of consolidation in the sector.
Housing.com, incorporated as Locon Solutions Pvt Ltd, was founded by a dozen IIT Bombay students in 2012 as a house search site and raised around $120 million in two years from investors including Japanese telecom and Internet conglomerate SoftBank Group Corp. However, the dream run came to a halt when the team oustedco-founder and then CEO Rahul Yadav in 2015. WithSoftBank taking the matter in hands and seeking proper measures, it kept the firm back in track byappointing Jason Kothari as CEO and providing more capital.
PropTiger’s main investor News Corp, have decided to pump in 50 million USD after the merger takes place thus making the entire portal nation’s largest online housing website. Till now,PropTiger has completed transactions worth $1.5 billion since its founding in 2011 while Housing.com is receiving over four million visits every month. It said the joint entity will offer full-stack services to customers, real estate developers, brokers and home owners.
Perhaps with this merger, PropTiger now aims to be a major player in the digital real estate market in India, with MagicBricks (backed by Times Internet) and 99Acres (backed by Naukri) as the other major competitors.