Fosun International may invest $100 million in Housing.com. China’s leading industrial conglomerate Fosun Group’s owns Fosun International, the investment arm of the group. Housing.com is in talks with real estate developers to sell predesigned home through its website. The company is actively pursuing the plan to raise funds for the investment.
Fosun is a classic story of success after China’s economic reform and opening up of the economy. The company has established a development model powered by four growth engines comprising insurance, industrial operations, investments and asset management. Fosun is a leading pharma major in China in terms of revenue.
Fosun Pharma went for world’s second largest IPO in the pharma industry in 2012. Many international financial institutional investors invested in the company from its inception. The company has listed their shares in Hong Kong Stock Exchange and Shanghai stock exchange.
Fosun group is a $10 billion conglomerate under which construction and real estate investment business in China. Fosun Property Holdings, the property investment and management company of the conglomerate has invested in 26 cities in China with assets under management $22 billion.
In India, there are about 20,000 real estate developers and majority of them are into designing, construction, sales and marketing. However Housing.com plans to work with the real estate developers to sell standard pre designed houses, designed by reputed houses. The company wants to market and sell the houses through their online portal, although it is a difficult model to sell.
Housing.com may be getting online enquiries, a source of information for their developers. Sanjay Dutt, executive Managing Director of Cushman and Wakefield, Asia says “The online platform can be used as a tool by real estate developers to know the pulse of the buyers. The requirement of the buyers can be assessed through the data of online platforms, which can then be used by developers to plan projects.”
He further added “Chinese investors want to invest more than 50% of their future investments outside the country. Besides the US and Europe, they are keen for investments in India in backdrop of revived economy.”
Jones Lang LaSalle India’s Ramesh Nair said “If Fosun is interested in Housing.com, then it is an indicator that companies are seeing potential in integrating bricks and clicks in the longer run.”
According to the observers, the Chinese conglomerate move may indicate the slowdown in the Chinese economy and revival of Indian economy. Most of this Chinese company need to rebalance growth and may look out for investments in the other countries.
Housing.com’s traffic has increased in these days and generating lot of interests among the Indian consumers. On 19th May 2015, Housing.com spread its offerings to 101 cities across India, earlier it was pegged at 55 cities. The company is leading real estate property listing portal.
Housing.com competes with IndiaHomes.com, indiaproperty.com. Commonfloor.com, Magicbricks.com, PropTiger.com and 99acres.com. The company has received many round of fundings from leading PE investors such Nexus Venture Partners, DST Global, Falcon Edge Capital, SoftBank Corporate, Helion Venture Partners and few others.
Last week Housing.com had acquired property analytics firm RealtyBI. RealtyBI is a leading company in property analytics. The analytics used by real estate developers, housing finance companies, home loan providers and others.