PropertyGuru's CEO has told DealStreetAsia it has no plans to go in for an initial public offering (IPO) in 2018, but will raise more capital if there is an ‘opportunity for inorganic growth, which includes an investment or acquisition of another player for growth’.
Such an investment may take the form of PropertyGuru raising its stake in Vietnam’s largest real estate information platform Batdongsan.com.vn, Hari Krishnan said.
“We have a minority stake over there and we have a board seat. I think we continue to have this conversation (of raising our stake). We did not go in there to take a minority stake there and sit there,” Krishnan said.
The portal is the dominant player in Southeast Asia, and Krishnan spoke with DealStreetAsia about the company's plans for capital raising, explaining that the firm was currently focused on ‘operational profitability’, a target he said the realty portal would hit by early next calendar year.
PropertyGuru currently operates in five markets — Singapore, Malaysia, Indonesia, Thailand and Vietnam. On expansion beyond its existing markets, Krishnan said:
“We don’t have immediate plans. We are very focused on these five markets.”
“Going to a new market is not just about going and planting a flag… We want to be the leaders in the markets where we are present. We do not see any need to expand beyond Asean to be honest. I love markets which have in-built barriers to entry. It is difficult to dominate Southeast Asia because there is no single entity as Southeast Asia – it is all individual markets and scale,” he added.
The portal has not raised capital since 2015, something Krishna says the company is proud of.
"We have been sustaining a pretty strong revenue growth rate (north of 20 per cent) and been sustaining without raising for 24 months, something pretty rare in Southeast Asia and a big deal for us,” he said.