Online classifieds platform Quikr India has bought two subsidiaries of mortgage lender Housing Development Finance Corp. Ltd (HDFC) focusing on real estate brokerage and online property, namely HDFC Realty Ltd and HDFC Developers Ltd for a total of $54.8 Mn (INR 350 Cr).
HDFC Realty Ltd operates the brokerage business, while HDFC Developers Ltd owns the HDFC RED platform for online real estate classifieds. In a regulatory filing, HDFC stated that this is an all-stock deal, with HDFC taking a minority stake in Quikr India.
Renu Sud Karnad, Managing Director of HDFC said, “The future of real estate is digital, and Quikr has built a robust technology platform for consumers with products for developers and brokers who stand to benefit in the post-RERA (Real Estate Regulation and Development Act) regime. We hope to derive value from Quikr’s diversified customer base while offering our strength in the real estate sector.”
HDFC Realty is offline brokerage business with a presence in residential and commercial properties as well as consulting and valuation services. It has a 300 member in-house sales team and 7,000 strong nationwide broker network. HDFC Developers runs the HDFC RED platform. RED is an online real estate classifieds platform with 7,000 project listings on its platform. It generates traffic of over 80,000 unique visitors per month.
Kotak Investment Banking acted as the exclusive financial advisor to HDFC on this transaction while Avendus Capital was the exclusive financial advisor to Quikr.
A Quick Look At Quikr And Its Acquisitions In The Year
This marks the second-biggest acquisition yet by Quikr in the online real estate after it acquired online realty portal CommonFloor in a stock-and-cash deal for $200 Mn in January 2016. In the same space, Quikr then went on to acquire Bengaluru-based home rental marketplace Grabhouse. Prior to that in 2015, it had acquired Indian Realty Exchange, a mobile-first aggregator of real-estate agents, and in the same year, had also acquired real estate portal Realty Compass.