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Aurum PropTech acquires home brokerage platform PropTiger for ₹86.45 crore from REA India
Aurum PropTech has acquired home brokerage platform PropTiger from REA India for ₹86.45 crore as part of its growth strategy
Aurum PropTech has acquired home brokerage platform PropTiger from REA India for ₹86.45 crore as part of its expansion plan. The company stated that its Board has approved the acquisition of 100% equity shares of PropTiger Marketing Services India Pvt Ltd.
The company said in a regulatory filing on July 23 that it has acquired PropTiger.com from REA India Pte, Singapore, through an all-stock, strategic equity swap.
The board approved the issuance of 42,42,537 equity shares (face value ₹5) of the company on a preferential basis to REA India as a consideration for the acquisition of PropTiger. The cost of acquisition is ₹86.45 crore, the statement said.
REA India announced on July 23 that it has entered into a binding agreement with Aurum PropTech Ltd to sell its housing brokerage platform, PropTiger. As part of the deal, REA India will transfer ownership of PropTiger to Aurum in exchange for a 5.5% equity stake.
Gurugram-based PropTiger is part of REA India that owns real estate classified platform Housing.com and had posted a turnover of ₹100.93 crore for the 2023-24 fiscal year. It was founded by Dhruv Agarwala in 2011. REA Group acquired a controlling interest in Housing.com as well as PropTiger in 2020.
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Aurum is a leading Indian-listed proptech company with a portfolio of businesses servicing the entire real estate journey. Recently, Aurum PropTech got market regulator SEBI's approval to launch its Small and Medium Real Estate Investment Trust (SM-REIT), as part of the company's plan to expand business.
In April this year, Agarwala resigned as the CEO of REA India. REA India has appointed Praveen Sharma as its new Chief Executive Officer (CEO).
Outgoing REA India chief executive officer and PropTiger Founder, Dhruv Agarwala, said, “We believe this alignment sets the stage for long-term growth. Aurum is the right partner for PropTiger and I’m confident it will thrive under their stewardship.”
REA India chief executive officer, Praveen Sharma, said, “This agreement is a decisive step in further sharpening our focus on Housing.com and its leading digital experiences while unlocking greater potential for PropTiger by aligning it with Aurum.
“Housing.com has achieved strong brand recognition and significant audience growth with our app-prime consumer experiences, which are delivering strong results. We are excited to double down in this space and continue supporting the next generation of Indian home seekers with seamless property experiences,” he said.
The combined businesses will combine Aurum’s operational expertise with PropTiger’s strong brand presence to create synergies and accelerate innovation.
Aurum PropTech founder and chief executive officer Ashish Deora said, “Our conviction in this acquisition stems from a shared vision with REA India to digitize the consumer’s real estate journey. This acquisition will expand Aurums’ reach across the home-buying value chain through the synergies PropTiger brings to our business segments.”
The proposed transaction is subject to satisfy certain conditions, including Aurum shareholder approval, and completion is expected within two months.
