InternationalInvesting

Housing.com fighting to survive

Struggling real estate vertical in India raises $90M, hopes cash boost will stave off decline
Published on Mar 25, 2016
  • One of India’s leading realty verticals, Housing.com, surprised market watchers in January when it raised $90 million U.S. from Japanese major SoftBank.

By Shilpa Shree; reposted with permission from AIM Group‘s Classified Intelligence Report.One of India’s leading realty verticals, Housing.com, surprised market watchers in January when it raised $90 million U.S. from Japanese major SoftBank.This was welcome news for a company struggling to stay afloat and on top of an increasingly competitive property market. The company is behind its own revenue projections, and costs are high.“Somebody needed to fund the deficit to keep the business alive while it figures out some way of making money. That is probably the reason,” said Mahesh Murthy, managing partner and co-founder of venture firm Seedfund.The Indian vertical is also potentially trying to raise an image of solidity with the fund raising in anticipation of a future merger.“ To pass a strong message that they are still a valuable invest- ment, to further strengthen their real estate business analytics capabilities and improve their valuation durin...

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