NEW DELHI: Real estate site IndiaHomes.com is raising another $50 million (Rs 310 crore) from existing investors New Enterprise Associates (NEA) and Foundation Capital, said two people close to the development. This comes amid acquisitions by the company that's seeking to grow across multiple markets and greater investor interest in the segment.
IndiaHomes.com is using some of the $24.9 million (Rs 150 crore) it raised in April to acquire five companies for a total $15 million, said one of the persons cited above, neither of whom wanted to be named.
It's buying smaller rival Favista.com based in Gurgaon for about $2.2 million and has taken over Mumbai-based technology company Vitruvian Technologies for $3 million. Vitruvian offers developers an ERP platform that manages their entire workflow.
"It will soon add a dynamic pricing engine of inventory that will add almost 20% to a developer's yield. We will take this feature to over 200 developers in the country," said the person.
IndiaHomes.com is also said to be acquiring London-based property investment firm Unesta.com for $2 million. Unesta caters to the nonresident Indian (NRI) community, a segment that many developers are focusing on.
In buying Favista.com, IndiaHomes.com is acquiring a smaller organised sector competitor that has strong commercial value.
The latest funding round comes as investor interest in property sites has been rising. Among the latest such deals was Softbank leading an investment of $100 million in Housing.com in November.
Earlier, CommonFloor.com raised aroundRs 183 crore in a fresh round from Tiger Global in September after getting Rs 64 crore from Tiger Global and Accel India in January. Info Edge, the owner of 99Acres.com, plans to increase its investment in the portal. Real estate site Prop-Tiger.com is reportedly in talks with existing as well as new investors to raise around Rs 120 crore by the end of the year.
One of the persons cited above said India-Homes is also in the process of buying a company each in Dubai and Ireland, but ETcould not ascertain details about these transactions.
Samarjit Singh, managing director of India-Homes.com, declined to comment on specific acquisitions or fund raising but said the company was constantly reviewing capital-raising options. Its growth plans include organic expansion across 50 cities in India besides growth in five international zones including Dubai, London and Singapore alongside an aggressive expansion through acquisitions.
"The company is already expanded to 50 cities in India and has made heavy investments in technology platforms. We have an investment programme of around $50 million in the next 18 months," Singh said.
Singh calls it a parallel expansion strategy, similar to what taxi aggregator Uber has done in recent times. "In the old economy, it was prudent to pursue sequential expansion," he said.
"In the new economy, the smartest companies like Uber pursue 'parallel expansion' strategies.
We believe in birthing and nurturing many geographies at the same time."
Ashu Garg, general partner at Silicon Valley venture capital firm Foundation Capital, and Bala Deshpande, senior managing director in India at NEA, declined to comment.