Malaysia-based Frontier Digital Ventures (FDV), an operator of online classified businesses in frontier and emerging markets, has made an investment in Hoppler, a Philippines-based property marketplace.
The real estate sector in Philippines is booming and consumer sentiments on property investments are increasingly positive, according to a report by The National. But according to Hoppler, the property sector is still fragmented.
It has thus developed a “deal management” system, which connects real estate brokers to buyers and vendors. Hoppler claimed that real estate brokers who use Hoppler have 4 per cent more chance of closing leads, as opposed to 2 per cent with non-Hoppler leads.
In addition, the brokers can expect to receive up to 50 per cent of the sales commission once a transaction has been completed. Hoppler currently receives an average commission of US$2,000 for its operations around affluent areas in Manila.
“Hoppler has built an incredibly scalable business model that is effectively digitising the real estate brokerage market in Manila and progressively over the broader Philippines market. Importantly, the Hoppler digital real estate agency business model has evolved organically in the Philippines due to localised issues with the existing real estate broking model,” said FDV founder and CEO, Shaun Di Gregorio, in an official press statement.
“We look forward to supporting the rapid growth of their sales team and implementation of best-in-class management models to help Hoppler capitalise on their significant market opportunity,” he added.
FDV has invested in a range of classifieds platforms across several emerging markets. They include A$3.1 million (US$2.34 million) in AutoDeal, a new car sales portal in the Philippines, and A$1.6 million (US$1.21 million) in Propzy, a transaction-focused classifieds business in Vietnam.
It has also invested in Sri Lankan property portal LankaPropertyWeb.
Hoppler was founded by Ramon Ballesca, who was formerly a senior manager at Epiq Systems (a platform for legal professions) and a senior project manager for CaseCentral (a company that provides management and analytics tools for legal firms and corporations).
Image Credit: Hoppler