After protracted negotiations that lasted more than six months, Bengaluru-based online classified’s firm Quikr has acquired real estate listings platform CommonFloor. The companies did not disclose the value or other details of the deal.
While many numbers have been floating around, TOI has reliably learnt that the deal has valued Bengaluru-based CommonFloor at around $100 million. It is a complete share-swap deal, and no cash has been exchanged. CommonFloor will get a little less than 8% stake in Quikr. It will create one of the biggest online real estate listings platform in India.
The deal, which values Quikr at around $1.25 billion, has valued CommonFloor below its valuation in the last round of funding. This last round was by Google Capital, which might have to write off a considerable amount.“However it could recoup some of the losses if Quikr sees substantial growth over the next few years,“ said an investor privy to the details.Google invested $15 million early last year valuing CommonFloor at $130 million.
New York-based Tiger Global Management is an investor in both Quikr and CommonFloor and multiple sources said it influenced both parties to come to the table to discuss the merger, given the growing competition in the space. The company had invested $30 million in CommonFloor in 2014. Quikr has so far raised $346 million in six rounds of funding and Tiger Global was a major investor in the last two rounds. Both Quikr Homes and ommonFloor will remain CommonFloor will remain separate entities and will have presence in more than 1,000 cities and towns, the companies said. Quikr is said to have had discussions with Softbank-backed Housing earlier for a merger, but was put off by the $135 million asking price.
“The industry has not recognized the benefits of cross-pollination. We expect the deal to accelerate our growth not just in the real estate category but across all our other verticals,“ said Pranay Chulet, founder and CEO of Quikr.
“Our synergies will benefit consumers, property developers, as well as our real estate partners, who are all key to the progression of the online real estate ecosystem,“ said Sumit Jain, co-founder and CEO, CommonFloor. Jain founded CommonFloor in 2007 together with Lalit Mangal and Vikas Malpani.