Propzy seeks to raise $50 million in Series B
08:48 | 03/07/2021 Print Article
Propzy, a Vietnam-based proptech startup that guides consumers through the entire process of a real estate transaction, is seeking to raise $50 million in its Series B funding round.
|Propzy will use the funds to expand geographical coverage of its services |
John Le, CEO of Propzy, said that they have been in discussions with a diverse group of potential investors who have shown keen interest in the Vietnam story and Propzy’s market leadership. The fresh funding will be used to facilitate Propzy’s further penetration of the Ho Chi Minh City market and country-wide expansion.
Complementing the geographic expansion will be product introductions such as Propzy's mortgage finance and asset management businesses. Commencing in mid-2022, Propzy will have launched its services in Hanoi as well as entering Tier 2 cities.
In the meantime, in order to execute on their upcoming 24-month plan, the company has expanded its leadership through key appointments for the positions of CFO, vice president of Sales, and head of Corporate Legal.
Propzy raised a $25 million Series A funding led by Gaw Capital and SoftBank Ventures Asia, the early-stage venture arm of SoftBank Group in 2020. Other investors included Next Billion Ventures, RHL Ventures, Breeze, FEBE Ventures, RSquare, and Insignia.
"Our strategy and execution has been working as evidenced by the company's success over the past year, particularly during the last three quarters, despite the COVID-19 pandemic,” John Le said. “During this time, the company made heavy investments into technology, operating infrastructure, consolidated and improved the user experience of our transaction centers, and lastly, launched our city-wide brand campaign.”
The company's performance was better than expected. The revenue grew by 4.4 times on-year in the second quarter of 2020. It only took two months in 2020 to reach $2 billion in gross transaction value, whereas it took 24 months in 2018. As a result, there is strong support from shareholders and investors to accelerate a Series B round sooner than expected.
Propzy is in the secondary and rental market in Vietnam. It has more than 22 transaction centres with nearly 800 employees and a massive database with more than 50,000 apartments and townhouses ready for transactions.