The size of the deal was undisclosed.
Hoppler brings to 19 FDV’s portfolio of companies operating businesses across 22 markets. FDV since 2014 has been serving as operator of online classifieds businesses in underdeveloped, emerging countries or regions. It listed on the Australia Securities Exchange (ASX) in August 2016.
Founded in 2015 by Silicon Valley entrepreneur Ramon Ballesca, Hoppler’s business model creates a solution for agents and consumers in a highly fragmented Filipino real estate agent industry.
Hoppler’s online platform enables property transactions among its network of professional brokers connected through the use of its proprietary deal management technology called Kumita, a Filipino word that means “to earn”.
The investment in Hoppler follows FDV’s strategy of evolving its revenue mix to be closer to the transaction and partnering with local entrepreneurs.
FDV founder and CEO Shaun Di Gregorio, said Hoppler’s digitization of the real estate brokerage market in Manila has expanded over the broader Philippine market.
“The Hoppler digital real estate agency business model has evolved organically in the Philippines due to localized issues with the existing real estate broking model,” Di Gregorio said. “We look forward to supporting the rapid growth of their sales team and implementation of best-in-class management models to help Hoppler capitalise on their significant market opportunity.”
FDV noted Hoppler has a 6 per cent average close rate from online leads generated, compared to 2 per cent for non-Hoppler leads. This translates that it has created a pure transactional revenue model, where it can share up to 50 per cent of the sales commission with partner brokers once a transaction completes.
The company added Hoppler receives an average commission of $2,000 for its operations around affluent areas in Manila. The business model is similar to the commission-based businesses Redfin, and Compass based in the US.