REA India, which owns Housing.com and PropTiger.com, has entered into a binding agreement with Aurum PropTech Limited to sell its PropTiger business. Under the proposed transaction, REA India will transfer ownership of PropTiger to Aurum in exchange for a 5.5 percent equity interest, the company said in a statement on July 23.
The cost of the acquisition or the price at which the shares are acquired, is Rs 86.45 crore, the company said. REA Group had acquired a controlling interest in property brokerage platform PropTiger.com in 2020.
“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,” outgoing REA India Chief Executive Officer and PropTiger Founder, Dhruv Agarwala, said.
REA India chief executive officer Praveen Sharma said that the deal will help the company in focusing more on Housing.com.
“Housing.com has achieved strong brand recognition and significant audience growth with our app-prime consumer experiences 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.
Aurum is an Indian-listed proptech company. It supports consumers through its rental brands HelloWorld and NestAway, while its data, marketing and sales automation brands, Aurum Analytica and Sell.Do, are used for streamlining operations by property professionals.
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, the company said.
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