Melbourne-based Digital Classifieds Group (DCG) has entered into a joint venture with Mongolian conglomerate MCS Group to set up a real estate platform with an investment of $1 million, according to an announcement.
Both companies will contribute capital and technology in the setting up of Tanyger.mn, the fourth online real estate listings platform from DCG.
The Mongolian expansion follows a $1.8-million investment round into DCG led by Mekong-based private equity firm Belt Road Capital Management (BRCM) last year.
“The majority of value in online classifieds flows to the market leader in a given vertical. For this reason, DCG is very focused on markets that we believe we can win and then dominate as the clear leader,” said Mathew Care, CEO, Digital Classifieds Group.
He said, 2019 will see DCG launch into two new markets. The second market will be announced shortly.
Established in 2014, DCG has created real estate platforms in Cambodia, Papua New Guinea and Fiji, under the name realestate.com.kh, hausples.com.pg and property.com.fj.
It also owns general classified websites in Laos, Papua New Guinea and Fiji.
To fuel the next phase of its growth, DCG is is in the process of raising a Series B round for regional expansion and claims to have received commitments from existing shareholders and strategic investors.
“By the end of 2019, we expect DCG will have doubled its revenue across a much larger addressable market,” said Care. Since 2014, the company has experienced an annual revenue growth of 120 per cent per annum.
As part of its Asia-Pacific expansion plan, DCG last year acquired majority stake in Yula.la and launched Laorealestate.la in Laos.
DCG is the first investment by BRCM after it launched a $50-million debut fund. BRCM subsequently invested $7 million Myanmar travel firm Oway Group. It followed it up with a $4-million investment in Singapore-based Unnitel, a mobility solutions provider which operates as WeRocket.