Vietnam-based real estate information platform Gachvang.com has raised a funding of $500,000 from a consortium of angel investors, the company founder revealed to DEALSTREETASIA.
Founded in 2015, Gachvang became the first marketplace in Vietnam that provides big data-based pricing information about real estate properties, said Nguyen Tan Phat, founder of the platform.
“The Vietnamese real estate market is relatively large, constituting around 13 per cent of the country’s GDP. However, no effective tool was available for the buyers and sellers as well as home seekers to identify the real value of the properties,” said Phat.
Founded in 2015, the startups spent a year developing its DinhZaDi evaluation tool, which enables detailed pricing on lands, houses and apartments across the country.
Gachvang.com follows the same model as the US-based Zillow, UK’s Zoopla and Singapore-based Srx.com.sg.
However, Phat noted that the major challenge for this business model in Vietnam is the limited availability of accurate data. While the variants in prices in other countries are minimal (only 2-5 per cent in the US), the founder said the lowest variant he could manage was 17 per cent.
The service is complimentary for the first two years, which has helped Gachvang.com garner a sufficient data pool for service upgrading – a premise for offering premium access.
The company claims to have up to 20,000 visits per day and around 49,000 weekly housing price searches via the valuation tool.
Phat has a background of both technology and real estate business. He used to work for Binh Duong-based real estate developer Becamex IDC, which also owns a local technology and innovation hub, before working for a Singapore tech firm.
The Vietnamese real estate market is recovering, triggering the interest from not only realty investors who have been recently involved in acquisitions in the country, but also in such startups like Gachvang.com, who are the beneficiary of a recovering market and increasing demand.
Singapore-based real estate information platform PropertyGuru has acquired a part of stake at Batdongsan.com.vn, a similar model in Vietnam, for an undisclosed amount.