Singapore-based 99 Group considers buying Vietnam’s Propzy
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Singapore-based property platform 99 Group is reported to be exploring options to purchase Vietnamese proptech startup Propzy.
Propzy is one of a dozen potential targets in Southeast Asia for the group, signaling its intention to expand after raising $37 million in a round led by Gaw Capital.
But the deal is currently in “very early stages” and carries “a lot of uncertainties,” Tech in Asia quoted an insider source.
Any acquisition would require a detailed processes and due diligence, one of the sources told StreetDealAsia.
In June, Propzy dissolved a Vietnamese legal entity related to its direct sales staff and laid off 50% of its employees to restructure its business model following the Covid-19 pandemic.
It has raised a total of $33 million from 11 investors, according to data from startup database Crunchbase. In 2020, it closed a $25 million series A round led by Softbank Ventures Asia and Gaw Capital Partners.
Founded in 2016, Propzy’s technology covers almost every stage of a real estate transaction, from brick-and-mortar sales centers to an online marketplace for listings, as well as enterprise software for property managers and tenants.
99 Group was founded in 2019, and is operating four property platforms across Singapore and Indonesia: 99.co, Rumah123, iProperty, and SRX.
Questions & Answers
Q.Why would 99 Group be interested in buying Propzy, given its recent difficulties?
Why would 99 Group be interested in buying Propzy, given its recent difficulties?
Propzy's technology covers nearly every stage of a real estate transaction, from sales centres to online listings and enterprise software. This comprehensive offering could be attractive to 99 Group for expanding its own property platform services.
Q.What issues does Propzy face that 99 Group would need to consider before a purchase?
What issues does Propzy face that 99 Group would need to consider before a purchase?
Propzy recently dissolved a Vietnamese legal entity and laid off 50% of its employees. This restructuring followed the Covid-19 pandemic and suggests business model challenges that 99 Group would need to assess during due diligence.
Q.How much funding has Propzy raised from investors to date?
How much funding has Propzy raised from investors to date?
According to data from Crunchbase, Propzy has raised a total of $33 million from 11 investors. Its last major funding round was a $25 million Series A in 2020, led by Softbank Ventures Asia and Gaw Capital Partners.
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