India: Housing.com posts FY16 loss of over $60m

Online real-estate company, Housing.com (Locon Solutions Pvt Ltd), now owned by PropTiger, posted losses that soared 45% to over Rs400 crore in the year ended 31 March 2016, financial documents sourced from Tofler showed.

The company registered an 111% increase in revenue to Rs26.76 crore, while total expenditure rose to Rs430 crore, a jump of 48% during financial year 2015-16.

Softbank-backed Housing.com was acquired by News Corp-backed PropTiger in January 2017 in an all-stock deal and was reported to receive $50 million in fresh funds from News Corp.’s REA Group Ltd and $5 million from SoftBank Group.

Most of Housing.com’s original 12 founders left during fiscal 2015-16 when its chief executive and co-founder Rahul Yadav was fired by company directors in July 2015. As a result, the company saw many CXO level entries and appointments, reflecting in its total employee benefit expense which increased by 120% to Rs188.5 crore.

In November 2015, the company appointed Jason Kothari as chief executive. After Housing.com’s acquisition, Kothari joined e-commerce company Snapdeal in January as its chief strategy and investment officer.

Founded in 2012, Housing.com has undergone changes in terms of both its business model as well its top-level management in the past year. The company moved away from being a property listing portal to a property buying and selling portal in November 2015.

During Kothari’s leadership, Housing had shut its rental business. In January 2016, Housing.com moved to a new model—earning advertising revenue from property listers that pay for greater visibility of their properties.

In December 2016, Housing announced that it had relaunched rentals. “Last year (in 2015) Housing.com had taken a strategic decision to close rentals in order to focus the company on the home buying and selling segment… Housing.com has now started preparing for the re-entry and plans to launch home rentals early next year,” Housing had said in a statement in December 2016.

In May, Mint reported that Housing.com is looking to touch $10 million in revenue in the current financial year.

Housing.com had not replied to Mint’s queries.

Also Read:

India: PropTiger buys Softbank-backed Housing in all-stock deal worth $70m-$75m

India: Housing.com returns to rentals business

This article was first published on Livemint.com

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.