Quikr India Pvt. Ltd. is in its final stage of discussion to acquire seven-year-old real estate portal Commonfloor.com in a share-swap deal for $200 million.
Making it one of the largest grabs in the online property selling space, classified portal Quikr India Pvt. Ltd. is in its final stage of discussion to acquire seven-year-old real estate portal Commonfloor.com in a share-swap deal for $200 million. The exact ratio of share exchange is still not clear.
Both Quikr and Commonfloor.com are still in talks over the valuation which expected to be somewhere between $120 to $200 million.
Founders of Commonfloor.com have also negotiated a two-year lock-in clause during which time they will remain with the portal and continue to grow it. Both companies will continue operations in their own spaces and the promoters will continue to do what they have been doing within the company. With the merger, the two plan to leverage on each other's strengths.
While CommonFloor.com will leverage the traffic, brand and reach of Quikr in tier-II, tier-III cities, Quikr will leverage on the property portals expertise to sell. It's a complementary thing. The deal is structured in a way that the founders and investors of CommonFloor. com get Quikr equity.
The online real estate market has seen growth over the last few years, and in a slow market many builders have realized this channel as an additional way to sell their properties. CommonFloor.com had started operations in 2007 and is one of the better performing players among a slew of new age property portals that have sprung up in the last few years. Some of them have raised large sums of money from venture funds.
In 2014, many companies such as PropTiger, Housing.com and CommonFloor. com raised over Rs 1,000 crore in funding. CommonFloor.com raised $30 million from Google Capital in January this year. Other investors in CommonFloor include Accel Partners and Tiger Global.
Earlier this year, Rupert Murdochled News Corp acquired 25% stake in PropTiger.com for $30 million and later upped its stake to 30%. At this point in time, there is at least one more consolidation attempt being worked on in this space, between IndiaHomes and IndiaProperty.
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