Shares of Aurum PropTech Ltd, formerly Majesco Ltd, surged over 5 percent after its board approved the acquisition of Tiger Global and Ratan Tata-backed NestAway Technologies for Rs 90 crore.
Alongside the consideration, Aurum PropTech will provide a capital infusion of Rs 30 crore to help stabilise the business of NestAway. This investment demonstrates a strong belief in the potential of the $20-billion rental housing market, the company said.
At 10 am, the stock was trading at Rs 124 on BSE, up 5.4 percent from its previous close, while the benchmark Sensex was up 0.16 percent at 62,526 points.
NestAway, a leading PropTech Brand in India, has raised a cumulative funding of $110 million, with the latest valuation reaching $220 million in 2019. Tiger Global, UC-RNT Fund, Flipkart, Goldman Sachs, and Yuri Milner are among its investors, the release said.
Prior to the COVID-19 pandemic, NestAway boasted a platform with 50,000 properties and achieved an annualised revenue of Rs 100 crore.
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At present, NestAway has scaled down to featuring 18,000 properties and has an annualised revenue of Rs 30 crore, the release said. Despite the drop in listings, the platform continues to maintain a consistent level of website traffic, attracting 600,000 visits, the release claimed.
In June 2022, Aurum PropTech completed the acquisition of HelloWorld from NestAway. Within a year, Aurum PropTech scaled up HelloWorld's operations, leading to the strategic acquisition of NestAway.
Jitendra Jagadev and Ismail Khan, who were originally part of NestAway's funding team and later became founders of HelloWorld, will now take on leadership roles within NestAway following the acquisition, the company has said.
Aurum PropTech has appointed Jagadev as the Chief Executive Officer and Khan the Chief Operating Officer of NestAway. This leadership transition aims to leverage their expertise and drive further growth and success for NestAway under Aurum PropTech's ownership, the release said.
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