PropTiger.com and Housing.com, two of India’s leading online real estate service providers, this week announced they will come together to become India’s largest online real estate services company.
As part of the transaction, REA Group will invest US$50 million ($70 million) in the joint entity, with an affiliate of Softbank Group Corp investing US$5 million.
In a statement, REA Group said the joint entity will draw on strengths of PropTiger, Housing.com and Makaan.com to offer a unique holistic experience to consumers, real estate developments, brokers and homeowners.
PropTiger is the largest online residential real estate brokerage firm in India, having completed transactions worth $1.5 billion since its founding in 2011, while Housing.com is India’s most popular online platform for buying and selling homes, receiving over four million visits every month.
“India is an important part of our international growth strategy. We believe in the potential of the Indian real estate market,” REA Group CEO Tracy Fellows said.
“REA invests in companies that are leaders in their markets. The joint entity will have access to REA Group’s expertise and know-how from its operations across the globe.”
News Corp CEO Robert Thomson welcomed the development saying: “Our investments in PropTiger, REA Group and Move, Inc. are testimony to our faith in the potential of the global digital real estate market, of which we are now the largest player.”
“With 1.2 billion people and a rapidly growing economy and middle class, India’s future as a real estate powerhouse is exceptionally bright, and we’re proud to be a part of this expanding sector,” Mr Thomson said.
“Clearly there is a compelling commercial purpose to the deal, but we also firmly believe in providing transparency, analysis and insight so that all Indian families, regardless of traditional background or means, will have a better understanding of the property market.”