Vietnamese proptech startup Propzy, which is backed by SoftBank Ventures Asia, is planning to raise $50 million in a Series B funding round that it targets to close by the end of this year.
Propzy CEO John Le confirmed the fundraising plan with DealStreetAsia in an interaction.
Le said the startup is looking at potential acquisitions to accelerate growth or deepen the company’s services capabilities within the real estate market.
“The fresh funding will also be used to deepen its footprint in Ho Chi Minh City and for country-wide expansion. The startup will deploy the proceeds for its products in mortgage finance and asset management businesses,” said Le. By mid-2022, Propzy seeks to launch its services in Hanoi as well as entering Tier 2 cities.
The proposed fundraising comes a year after the startup secured $25 million in its Series A round led by real estate private equity firm Gaw Capital and SoftBank Ventures Asia. Next Billion Ventures, RHL Ventures, Breeze, FEBE Ventures, RSquare and Insignia Ventures Partners also joined the round.
The proptech startup had earlier secured $12 million from backers including Stonebridge Capital, Insignia, GS Shop, TNB Aura and Next Billion Ventures.
Founded in 2016, online brokerage Propzy serves the secondary and rental market in Vietnam. Propzy’s platform offers features including property search, transparency related to the pricing and local market content, mortgage marketplace, and closing/settlement of deals.
Le claims Propzy is the only proptech company in Vietnam to follow the hybrid online to offline model that offers a full-stack real estate platform.
In a recent interview with DealStreetAsia, Le said that although the pandemic created much uncertainty in the market, Propzy took this opportunity to invest in training of sales personnel, user interface improvements and introduction of mortgage products.
Propzy claims to have experienced a 4.4X comparable quarter revenue growth (Q2 of 2021 vs Q2 of 2020). The company has also doubled its headcount to over 800 employees from last year.
Vietnamese proptech players have predominantly been active in the residential and office segments, according to consulting firm JLL.
“We expect investments to continue to flow into the Vietnam proptech space, particularly as Vietnam and the rest of the region recovers from COVID and as consumer sentiments improve,” said Kenneth Low, principal at SoftBank Ventures Asia in a previous interview with DealStreetAsia.
Among recent transactions in the proptech space, Vietnam’s real estate platform Citics raised $1 million in a pre-series A round from Vulpes Investment Management, Nextrans, and TheVentures in March.
As reported by DealStreetAsia in February, Vietnamese proptech startup Rever was understood to be raising $8-10 million in new funding round. Earlier transactions include Homedy raising funds from Genesia Ventures, Access Ventures and Mynavi Corporation.