Quikr may buy a majority stake in realty portal CommonFloor for Rs 330 crore
Quikr is close to acquiring a majority stake in realty portal CommonFloor with the pay-out estimated to be worth about Rs 330 crore.
The potential deal between the two companies — which count New York-based investment firm Tiger Global Management as a common investor — is slated to close soon, with talks having begun nearly five months ago.
"While the management of CommonFloor is looking for an external investor, and resisting the Quikr deal, investors have pushed for an acquisition which is now in the due diligence stage," said one source.
The contours of the deal, including whether CommonFloor will operate as a subsidiary of Quikr are still being worked out.
ET could not independently verify the value of the ongoing deal. Quikr CEO Pranay Chulet did not reply to emails, calls or texts at the time of filing this article while CommonFloor's Chief Executive CEO Sumit Jain did not reply to email queries from ET.
Bengaluru-based CommonFloor has been in talks to raise fresh funding from financial investors for several months now.
Founded in 2008 by Jain, Lalit Mangal and Vikas Malpani, the company has so far received over $60 million in venture funding and was valued at a little over $100 million in its last round of fund raising.
Apart from Tiger Global it also counts venture capital firm Accel Partners and Google Capital as investors. "Tiger owns a majority stake in the company, however, it has decided not to push in additional capital," said one of the people who spoke to ETon the developments. The deal, when complete, will be the second in the realty classifieds space, after PropTiger acquired Makaan earlier this year.
Others like IndiaHomes and IndiaProperty are also expected to be part of the ongoing consolidation in the sector where over a dozen players including 99acres and MagicBricks are competing for top honours. MagicBricks is owned by the Times Group, which publishes this newspaper.
Earlier this year Quikr, which is also backed by Swedish investment firm Kinnevik, looked at Soft-Bank-backed Housing.com for a potential acquisition, but people aware of the developments said the talks fell through as the two parties could not agree on a price.
Bengaluru-based Quikr — founded in 2008 and now valued at about $ 900 million — is building various verticals across segments like automobiles, blue & grey collar jobs in addition to realty.
Besides competing with Naspersowned OLX for top spot in the horizontal classifieds space, "Quikr could emerge as a dominant player in one of the verticals as well," said one of the investors in Quikr.
The company has raised funding of $300 million in three rounds since 2014 and counts hedge funds such as Steadview Capital, US-based Coatue Management and Falcon Edge Capital as investors.
Other investors include Warburg Pincus, Matrix Partners India, Norwest Venture Partners, Nokia Growth Partners, Omidyar Network and eBay.