Takeover bid of PropEquity falls flat


Housing-Banner-SpecsTakeover bid of PropEquity falls flat on Housing.com. Housing.com is in news for all the reasons since from few months. Housing.com was in negotiations with PropEquity, a Gurgaon based real estate data and analytics platform.  The deal hit roadblock due to valuation differences. As we are all aware, Housing.com investors are exercising larger control over the company’s daily operations, the deal with PropEquity is been revisited.

PropEquity generates revenue through subscription model.  Their clients are real estate developers, real estate private equity investors apart from investors like banking and financial sector institutions. PropEquity platform spot the market trends and generate micro and macro analytics in the real estate sector segment.  They cover 45,000 projects with new additions of 500 projects each month. Around 8,200 developers spread across 40 cities are covered by the company.

Housing-building-planThe deal is crucial for Housing.com, they can use the high quality analytics that PropEquity posses helps fueling further growth and provide the high quality data to the end users. This apart a steady revenue stream that is generated through B2B clients of PropEquity’s . Apart from this Housing.com is under sheer pressure from the promoters to generate revenue. Products of Housing.com are still in development stage.

Housing.com’s Chief Executive Officer Rahul Yadav, yesterday had announced in a town hall meeting , that he will transfer all the holdings to the employees. It was also stated that the valuation of holding will Rs. 150 to 200 crores.  In fact investors have taken this issue seriously and generally institutional investors are tight lipped on the valuation part. Another reason for distaste is that Rahul  Yadav had not consulted the promoters, since they hold the first right of refusal.

Rahul Yadav has now challenged Zomato and Ola CEO’s publicly. In his Facebook post, he stated  “Now I challenge Deepinder Goyal of Zomato and Bhavish Aggarwal of Olacabs to continue this noble act and give away HALF (not full) OF THEIR SHARES to their employees. And I hope both of them spread the nominations further.”

Housing-Kolkatta-BannerAlthough Deepinder Goyal, Chief Executive Officer of Zomato and Ola’s Chief Executive Officer, Bhavish Aggarwal have appreciated in the post. Rahul Yadav holds 4.5% of stake in Housing.com, however total stake of other founders has fallen to abysmally low of 8 to 9% after several rounds of funding raised by the company.

Japanese telecom and internet giant Softbank is planning to take over the reins of Housing.com. They already set up a 5 member team headed by Softbank representative Jonathan Bullock. Rahul Yadav is respected in the startup world and credited for creating one of the finest tech products in Housing.com. However the business of Housing.com has not scaled up, which has drawn ire of investors.

Rahul Yadav’s earlier spat with Shailendra Singh, Managing Director of Sequoia Capital and his spat with the media conglomerate Times Group owned MagicBricks.com had made lot of news. Housing.com is in direct competition with companies 99acres, MagicBricks and Common Floor. Funding also been done in a big way for online real estate portal business. It would be interesting to watch the further developments in the real estate sector.