Earlier today, VCCircle reported that Quikr is in the process of acquiring Bangalore-based CommonFloor for around US$112 million.
When contacted, a CommonFloor spokesperson told e27. “We are in the middle of fund raising and there are multiple options on the table. We have not yet finalised one. We are working at multiple levels to ensure our growth takes place in a sustained manner. As a company policy, we do not comment on speculations. We are committed to our vision of organising real estate industry in India.”
Founded in 2008 by Chulet and Jiby Thomas, Quikr is a large scale cross-category classifieds business with over 30 million consumers. The site enables users to sell, buy, rent or find products and services. The services are available in 1,000 cities in India and it operates in over 10 categories that include mobile phones, household goods, cars, real estate, jobs, services and education.
The firm has been rapidly expanding its services that include its recently-launched real estate marketplace QuikrHomes, which provides customer engagement and lead management tools to builders and brokers. It also provides a complete living experience for home seekers in the form of additional information about the neighbourhood, schools, malls, hospitals, parks and walking areas.
“Quikr’s real estate vertical is not an established business yet. They would still need the CommonFloor management to run the business. Therefore, they (CommonFloor founders) will not exit immediately for sure,” the source added.
The firm has raised around US$350 million in funding to date, including a US$150 million round from Tiger Global Management, Swedish VC fund Investment AB Kinnevik and Hong Kong-based Steadview Capital, in April this year.
CommonFloor was founded in 2007 by Sumit Jain, Vikas Malpani and Lalit Mangal.
Rumour mills have been active for some time now about the possible acquisition or merger of CommonFloor, which competes with the likes of Times Group’s MagicBricks and InfoEdge’s 99acres.com, besides SoftBank-backed Housing.com, which had recently been in the news for the firing of its former CEO Rahul Radav and restructuring.
The sale of CommonFloor reflects the on-going slump in the real estate market in India. Property prices have declined over the recent months and builders are struggling to find buyers for their inventory.