The funds raised will be used for M&A transactions.
PropertyGuru, a Singapore-based real estate trading platform, will begin trading on the New York Stock Exchange (NYSE) in the first quarter of next year. Its CEO Hari Krishnan talked about it in an interview with CNBC.
The real estate market plans to go public via a merger with Bridgetown 2 Special Purpose Acquisition Company (SPAC), PropertyGuru announced in July this year.
Part of the shares worth $100 million will be purchased by institutional investors. In particular, British Baillie Gifford and Naya Capital, Australia’s REA Group, as well as one of Malaysia’s largest asset managers, Akaris Global Partners.
The company expects its market value after the deal to be $1.78 billion, according to a press release.
Proceeds from the placement will be used to buy other companies, Krishnan said in an interview with the portal. According to him, PropertyGuru management is interested in buying startups in the fields of data analysis, software development, residential care, and financial technology.
The Bridgetown 2 deal is pending regulatory approval from the US Securities and Exchange Commission (SEC). Krishnan predicts PropertyGuru shares will appear on the New York Stock Exchange during Q1 2022.
Southeast Asia’s proptech market leader
PropertyGuru was founded in 2006 and operates an online platform for buying and selling real estate. This project combines all services related to the sale, purchase and rental of housing. Buyers and sellers select properties on the platform and hire real estate agents. Developers and agents can advertise and automate the sales process using PropertyGuru’s SaaS service. The platform also connects borrowers, banks and appraisers to process mortgages. More than 57 million users visit the group site every month.
Markets group operates in 14 Asian markets, including Singapore, Thailand, China, Indonesia, Australia, China and Hong Kong. PropertyGuru has a market share of 81% in Singapore and 95% in Malaysia. According to Krishnan, the company has no plans to expand to new countries.
Since its inception, the proptech marketplace has raised $544.4 million, according to Crunchbase. Investors in the project are American investment firms Kohlberg Kravis Roberts and TPG, Emtek Group refrigeration Indonesia, and the Australian Square Peg fund.
The company makes money from commission agencies and advertising services. In the first half of this year, PropertyGuru’s revenue reached S$42.9 million ($31.4 million), an increase of 17% over the same period last year. For the full year 2020, revenues totaled $61.9 million. The net loss for the first half of the year was S$150.6 million ($110 million) due to a decrease in option costs for preferred stock conversion by S$124.1 million ($90 million).
The company expects revenue to grow 29% annually through 2025. The platform’s target market is estimated at S$10.7 billion ($7.82 billion), according to the company.
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