Update: As per a NextBigWhat’s report and according to sources familiar with the matter, the deal values CommonFloor at $200 million and it will continue to operate as a stand-alone entity.
The talks between both the companies had been going on since May 2015 but at that time, CommonFloor’s Founder Sumit Jain had denied such talks. In October, there was a news that CommonFloor deal is expected to be a complete buyout at $160 million. However now the deal amount has come out to be considerably higher.
A company’s spokesperson told iamwire, “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, therefore kindly hold on as we will inform all the stakeholders when the time is ripe. We are committed to our vision of organizing real estate industry in India.”
A Quikr spokesperson told media portal VCCircle, “It is 99 per cent complete; what remains is some paperwork.” Post deal, CommonFloor’s Founders Sumit Jain, Vikas Malpani and Lalit Mangal would receive some cash for their stakes. The portal also reported that the deal is likely to an 80% stock and 20% cash component division. Existing investors in CommonFloor, including Google Capital Accel Partners will collectively get a 10% stake in Quikr.
CommonFloor was started as as a residential community management site in 2007 and later it changed its focus to home rentals and resale. Till now, the company had raised a total capital of around $60 million.
Other portals like IndiaHomes and IndiaProperty are also expected to be part of the ongoing consolidation in the sector where over a dozen players including 99acres and MagicBricks are competing for top honours. Through this deal the horizontal classifieds site is planning to bolster its realty vertical.