Southeast Asia’s fastest-growing online property platform 99 Group announced today (July 28) that it has raised US$52 million funding in a Series C round, led by Gaw Capital Partners.
A sum of US$37 million was completed at the first close, and a further US$15 million will be raised over the coming months, of which the majority has already been committed. This more than doubles the total capital raised by 99 Group to over US$80 million.
The proceeds will be used to further invest in existing markets Singapore and Indonesia, continue investment in leading the industry in innovation, research and develop, and expand to new markets in Southeast Asia (SEA).
In Singapore, 99 Group operates 99.co, SRX.com.sg and iProperty.com.sg, while in Indonesia, it operates 99.co/id and Rumah123.com.
Since the acquisition of SRX, 99 Group has doubled its agent subscriber base in Singapore and established itself as a clear leader in the market. It is also the dominant marketplace in Indonesia, with over 70 per cent audience market share.
99 Group has also witnessed over eight times growth in sales from the first quarter of 2019 to 2022, and and over four times growth in traffic to 30 million per month over the same period.
99 is poised to be a ‘superapp’ of property
Image Credit: Gaw Capital Partners
Lead investor Gaw Capital Partners is a private equity fund management company that zooms in on real estate markets in Asia Pacific and other high barrier-to-entry markets globally.
Its venture arm, with over US$800 million in Assets Under Management (AUM), focuses on investing in real estate-related tech ventures and operating companies.
“We are very bullish on Southeast Asia, and the investment in 99 is a natural testament to that. It offers us great synergy to help us scan the market for investment opportunities and unparalleled go-to-market capabilities for our projects,” said Humbert Pang, Managing Principal, Head of China and Co-chair of Alternative Investments of Gaw Capital Partners.
“In every market, there is always the cornerstone marketplace in proptech where the center of gravity is — the ‘super app’ of property, if you will. We saw that with Beike early and see that now with 99. With the long runway of growth in SEA, we believe 99 can be the natural player to consolidate the regional market in the coming years,” added Herbin Koh, Director, Head of Venture & Growth Equity at Gaw Capital.
Expanding footprint in SEA
Image Credit: 99.co
“We see tremendous opportunities in these uncertain global markets and our conviction in SEA’s growth remains steadfast. This is the perfect timing to raise capital as we have established leadership in core markets and are ready to expand to new markets with all the technology, experience and operational capabilities we have built,” said Darius Cheung, CEO of 99 Group.
“Having a strong balance sheet will also allow us to react with agility and decisiveness to potential M&A opportunities, which we predict are going to come in abundance.”
Earlier in February, it is reported that online classifieds company Carousell is in talks to acquire 99 Group for US$150 million in a cash-and-stock deal.
As 99 Group looks at strengthening its presence across SEA, this potential sale would help it fuel its expansion plans in markets such as Malaysia, Indonesia, Thailand and Vietnam, which it entered last year.
The deal could also help 99 Group better compete with rival company PropertyGuru, which has presence in the same five markets.
Featured Image Credit: 99 Group
- Next Asia’s richest woman loses half her wealth in China property crisis
- Previous Having women in the boardroom or C-suite drives diversity, study finds
- Viktor Bout: The Russian arms dealer touted for US prisoner swap
- Google Is Pressuring Apple to Fix Android-iPhone Texting (But It’s Complicated)
- Rory McIlroy says ‘common sense prevailed’ in court ruling against players on Saudi-backed LIV Golf series
- They survived lockdown in Shanghai, only to be trapped again in Hainan
- AI chatbots offer a way to connect with and engage customers
No comments to show.