Vietnam's proptech startup Propzy shuts down operations

Six years on, Vietnam’s proptech startup Propzy has announced that it has started winding down operations from Monday, according to an internal email accessed by DealStreetAsia.

“We had raised our $25-million Series A round in mid-2020, which was immediately met by a prolonged pandemic compounded by global financial market instability from the Russian war in Ukraine. Our efforts to grow the business during this period resulted in absorbing significant losses that we were not able to recover from given the continual lockdown in Vietnam,” the email to employees said.

“Our inability to raise funding amidst the backdrop of an uncertain global environment was the final jab of the knife in our young startup,” it added.

The move comes a few months after the proptech company announced that it had dissolved Vietnam’s legal entity related to direct sales in June this year.

According to an announcement sent to the Ho Chi Minh City Department of Planning and Investment on May 25, Propzy said the dissolution is a result of business model restructuring.

Earlier, DealStreetAsia broke the news that Propzy has laid off over 50% of its employees as it scaled down operations due to the pandemic and prepared to shift its business model.

Most recently, we reported that Singapore-based property portal 99 Group is understood to be looking at acquisitions in Southeast Asia, which could include Vietnamese proptech startup Propzy.

Propzy’s operations are broadly in line with the general strategy of 99 Group, the sources mentioned above said. But any acquisition would require a detailed process and due diligence, one of the sources said.

Founded in 2016, Propzy’s technology covers almost every stage of a real estate transaction, from brick-and-mortar sales centres to an online marketplace for listings, financial products such as mortgage lending and, finally, enterprise software for property managers and tenants.

In 2020, Propzy closed a $25-million Series A round led by real estate private equity firm Gaw Capital and SoftBank Ventures Asia. New and existing investors participating in the financing included Next Billion Ventures, RHL Ventures, Breeze, FEBE Ventures, RSquare and Insignia Ventures Partners.

 

 

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