Online real estate marketplace Housing.com is reportedly in talks with Snapdeal and News Corp for selling its stakes. The Mumbai based company is looking for backers to recover from its last year’s breakdown in the online real estate market.
The talks are in early stages and could lead to a deal second quarter next year. The company’s downfall began this year, around the time when the company decided to sack co-founder Rahul Yadav. Rahul was engaged in public spats with a venture capital investor and finally he was removed from the company in July 2015.
After that the company has changed its top management completely, fired hundreds of employees. They even tried to make a deal with Quickr but it did not go through because of the disagreements over terms. The troubles for Housing are coming at a time when the investments are slowing down in India and the investors are asking to turn up revenues and profits before asking for more money.
Housing.com has already received a total funding of $139.5 million from Helion Venture Partners, Nexus Venture Partners, Qualcomm Ventures and Softbank Capital.
India’s real estate market is expected to reach $180 billion by 2020 from $ 93.8 billion in 2014. It is currently the fourth-largest sector in the country in terms of Foreign Direct Investment (FDI) inflows which was stood at around $ 24.07 billion during April 2000–May 2015 stood at around US, as per an IBEF report.
News Corp acquired 25% stakes in Elara in 2014, which is the parent company of PropTiger, for $30 million and increased its stake in the company to 30% in June, 2015.
Last month Housing announced that is going to close all rental and commercial services and would just concentrate on buying and selling of the properties.
Housing.com faces competion from 99acres.com, Commonfloor, Magicbricks and PropTiger. It will be interesting to see how Housing makes its impact in the real estate market this 2016.