Housing.com, which was once India’s booming start-up is getting acquired by rival PropTiger. The deal was announced this week. Housing.com during its early stages was known for revolutionizing the sale and rental of property in India.
The deal with PropTiger includes removal of its outspoken CEO and removal of its rental business. These measures have been taken to advance their lucrative home sales market; overall it looks like a disappointing merger.
The Indian digital real estate which was labelled as “India’s largest online real estate services company,” will now get ahead in the game as it is going to be financially stronger than before. TechCrunch reported that Australia’s REA group invested up to $50 million into its covers along with SoftBank. Overall Howsing.com secured about $90 million two years ago.
SoftBank Group International MD, Jonathan Bullock said, “Housing.com is very well-established as an online real estate platform brand, and we have been working with the management team to create strong execution capabilities, to offer full stack services under one umbrella. PropTiger has already created a great transaction engine. We have full confidence in the management team and will continue to support them. We would particularly like to thank Jason for his leadership and wish him well for his future endeavour.”
Speaking on the partnership, Dhruv Agarwala, co-founder and CEO of PropTiger, said “We are excited to join hands with Housing.com. The deal is a continuation of our efforts to bring the best-in-class services to consumers and create a unified technology-driven platform that is capable of serving all needs of consumers, developers and brokers, on buying, selling and renting of homes. Housing.com has established itself as a formidable online brand, and we admire its consumer-centric product innovation. The timing of this deal is just right.”
With the recent demonization in india, where the prime minister Narendra Modi has banned the highest value currency and with only two weeks into 2017, the housing.com deal added plenty of drama to India’s start-up scene.
The new business of combining PropTiger and Hosuing.com is a clever step fot REA Group. Because along with News Corp, it is to become market lear in Asia.