As part of the transaction real estate media group REA Group Limited, owned by NewsCorp Australia and a subsidiary of News Limited, will invest US$50 million in the joint entity, with an affiliate of Softbank Group Corp investing US$5 million.
In a press release, REA Group said the joint entity will draw on the strengths of PropTiger, Housing.com and Makaan.com to offer a unique holistic experience to consumers, real estate developments, brokers and homeowners.
PropTiger is the largest online residential real estate brokerage firm in India, having completed transactions worth $1.5 billion since its founding in 2011 while Housing.com is India’s most popular online platform for buying and selling homes, receiving over four million visits every month.
REA Group CEO Tracy Fellows said that the Indian market is an important part of REA’s international growth strategy.
“We believe in the potential of the Indian real estate market,” Fellows said in a press statement. “REA invests in companies that are leaders in their markets. The joint entity will have access to REA Group’s expertise and know-how from its operations across the globe.”
Robert Thomson, the chief executive of NewsCorp, has also welcomed the development.
“Our investments in PropTiger, REA Group and Move, Inc. are testimony to our faith in the potential of the global digital real estate market, of which we are now the largest player,” Thomson said.
“With 1.2 billion people and a rapidly growing economy and middle class, India’s future as a real estate powerhouse is exceptionally bright, and we’re proud to be a part of this expanding sector,” he said.
“Clearly there is a compelling commercial purpose to the deal, but we also firmly believe in providing transparency, analysis and insight so that all Indian families, regardless of traditional background or means, will have a better understanding of the property market.”
By 2030, India is expected to be the 3rd largest real estate market in the world with the sector contributing to over 15% of national GDP. The joint PropTiger-Housing.com entity is exceptionally well positioned to win the digital real estate market in India with its unique capabilities and a strong set of institutional investors, which also include SAIF Partners, Accel Partners and Nexus Venture Partners.