Propzy, a Vietnam-based startup that guides customers by your entire technique of an actual property transaction, introduced it has raised a $25 million Collection A led by Gaw Capital and SoftBank Ventures Asia, the early-stage enterprise arm of SoftBank Group. Different traders included Subsequent Billion Ventures, RHL Ventures, Breeze, FEBE Ventures, RSquare and Insignia.
As a substitute of proptech, Propzy founder and CEO John Le prefers the time period “firetech” to explain the startup, utilizing “hearth” as an acronym for monetary, insurance coverage and actual property know-how. Based in 2016, Propzy’s know-how covers virtually each stage of an actual property transaction, from brick-and-mortar gross sales facilities to a web based market for listings, monetary merchandise like mortgage lending and, lastly, enterprise software program for property managers and tenants.
The corporate’s Collection A shall be used to develop its product line and supply a stability sheet for its growth into direct mortgage financing. Most of Propzy’s present operations are in Ho Chi Minh Metropolis. It plans to increase into Hanoi by the remainder of this yr and 2021, earlier than exploring different Southeast Asian markets, together with probably Thailand, Malaysia and the Philippines.
Propzy at the moment has 30 brick-and-mortar gross sales facilities, with a complete of 400 gross sales employees. Over the 18 months, it expects to extend these numbers to 70 gross sales facilities and 1,300 gross sales employees.
The gross sales facilities complement Propzy’s on-line market, with tens of 1000’s of properties pre-screened by its employees earlier than they’re entered into listings. Le stated Propzy has dealt with greater than $1 billion in property transactions since its launch, making it the biggest offline-to-online actual property community in Vietnam.
Le is a serial entrepreneur and his previous startups embody LoanTrader, a mortgage buying and selling platform that was backed by Goldman Sachs, Citigroup and GE Capital. In 2009, he went to Vietnam to launch a world credit score bureau with TransUnion. Throughout that point, he realized how burdensome the method of renting or shopping for property will be there.
In the USA, customers profit from itemizing platforms like Zillow and Trulia, licensed actual property brokers and escrow workplaces. In Vietnam, nevertheless, Le stated many listings are on categorised websites, much like Craigslist, and are sometimes not dealt with by licensed brokers. There may be additionally no standardized itemizing information, which makes evaluating a number of properties troublesome for customers.
To duplicate the U.S. expertise in Vietnam, “you’ll be able to’t simply launch a web site and put properties on it,” Le stated. “We constructed an offline company, however it’s worthwhile to make the most of tech to extend its effectivity and efficiency, so we’re an offline-to-online platform. That top-touch customer support must go all the way in which, not only for property matchmaking however to assist each events efficiently shut and settle transactions.”
Propzy constructed an automatic valuation mannequin utilizing information it has gathered over the past 4 years to evaluate properties, assist advocate costs and present clients comparable properties. On the financing facet, the mannequin can be utilized by Propzy’s accomplice banks to assist clients get pre-approved for loans based mostly on property worth.
After patrons transfer into an residence unit, they will use Propzy’s tenant software program to report points or guide upkeep providers and facilities. In the event that they determine to promote or hire the property, they will additionally accomplish that by the platform.
The pandemic has put downward stress on Vietnam’s actual property market, with a 70% discount in Propzy’s enterprise through the nation’s nationwide lockdown in April. Then again, extra individuals had been doing searches on-line and inquiring about promoting property, Le stated.
“We’re carrying an all-time excessive pipeline of offers, as customers begin to have extra confidence and know the place the market shall be in two to a few months,” Le added. “Folks nonetheless want homes, so offers within the pipeline are 3 times over the fourth-quarter common. We count on them to shut shortly, so we’re on an excellent path to hitting our numbers on the finish of the yr.”
In a press assertion concerning the funding, Gaw Capital managing accomplice Humbert Pang stated, “Given the favorable macroeconomics exhibited by Vietnam and Gaw’s conviction in offline-to-online enterprise fashions in actual property, we’re excited by our funding into Propzy. We see the worth proposition and steadfast imaginative and prescient that Propzy and its administration staff brings to the desk and are subsequently very optimistic in Propzy’s enterprise and the market inside which it operates.”