After literally months of speculation, Quikr has finally announced that it has acquired Commonfloor for an undisclosed amount. Multiple reports are claiming Google Capital-backed Commonfloor’s valuation in the vicinity $12o Million — a decent hit from the speculated $200Mn valuation it already sits on.
The exact terms of the deal have not yet been officially disclosed. The deal is however be on a 100% equity swap basis, with one of the founders of CommonFloor expected to join the Quikr board with a lock-in period close to 2 years.
Quikr said in a joint statement,
The merger, which is expected to be completed over the next two to three months, will give CommonFloor.com access to Quikr’s 30 million consumers and harness the potential of the cross category nature of the platform, while QuikrHomes will benefit from CommonFloor’s structured data and domain expertise.
Post merger’s closure, CommonFloor will continue its operations as an independent entity. The merged entity is also reportedly looking to gobble up a staggering $100-$150 million in a fresh fundraising round. Both the entities have a common investor in the form of New York-based Tiger Global Management — thus making this “100% equity swapping” acquisition pretty much a non-complicated affair.
That being said, it is the same Tiger Global which had apparantly refused to participate in a larger funding round for Commonfloor — thus leading to this deal. CommonFloor had raised an undisclosed amount of funding from Google Capital last year in January. The startup had been on a look-out for fresh funds, but failed to garner the same due to back-out by current leading investor.
In total, CommonFloor has raised over $60 million in funding so far at a valuation of around $200 million. It is one of the three major startups in the Indian online real estate sector, the other two being Housing and PropTiger — the former of whom doesn’t appear to be doing that well and the latter getting fresh money from existing investor Newscorp itself. As for Commonfloor, even though it has shown considerable growth since its inception in 2007, the financials haven’t been too encouraging.
For instance, at the end of 2014-15, the company had posted revenues of around Rs 45 crore. But its expenses stood at nearly Rs132 crore which led to a loss of about Rs 87 crore. Furthermore, it had liabilities of about Rs 24 crore at the end of March 2015, which included aboutRs12 crore of trade payables.
Online classifieds-to-now-everything portal Quikr, has proved to be a much better investment for Tiger Global. It is currently valued in the vicinity of $1 billion. Founded in 2008, it has so far raised about $346 million including the latest funding round of $15o million from Steadview Capital, Tiger Global, and others.
It launched QuikrHomes in September last year to focus on real estate offerings as well. It even made two acquisitions after that to strengthen its new segment- first it acquired Indian Realty Exchange, a platform that aggregates real estate agents, and last month it acquired a real-estate analytics startup Realtycompass. Commonfloor’s additipn would perhaps result in the emergence of a first in this lately cluttered real-estate segment.
The current acquisition is again interesting, largely because there were even reports of Quikr acquiring Housing for about $175 million, but the deal apparently did not work out due to the difference in valuations.
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