Quikr set to diversify further, may acquire HDFC's realty and digital businesses

As Quikr diversifies into new businesses, it now plans to acquire two arms of HDFC - brokerage business HDFC Realty and digital business HDFC Red - in exchange for a 5 percent stake in the online classifieds platform, reports Mint.

While the deal size is estimated to be around Rs 350-Rs 400 crore, the equity deal will fetch HDFC more money. With the new valuation of Quikr, which has risen to USD 1.5 billion (Rs 9,600 crore) following multiple acquisitions over the past 12 months, a 5 percent stake would be worth Rs 480 crore.

Quikr's strategy

The company is venturing into new businesses including real estate, automobiles, jobs, services and customer-to-customer sales. Industry experts say the move can help Quikr penetrate deeper into new properties. It will also benefit by being able to follow up on real estate leads it generates on its web site.

In the past, Quikr acquired platforms such as Salosa, Stayglad and ZapLuk which are into home services, and real estate startups such as Commonfloor and Grabhouse. In addition, recruitment firm Hiree and automobile services company Stepni are also part of Quikr.

What's in it for HDFC?

Through this deal, HDFC will get access to Quikr’s platform to sell mortgages. Also, the broking business is getting irrelevant for HDFC and the company is seeking leads but more refined ones. Hence, it is looking to enter a partnership with Quikr.