Property platform Propzy raises $25 mil. from Softbank, Gaw Capital for Vietnam expansion
HANOI, NNA - Propzy, a real estate platform based in Vietnam, has raised $25 million in a funding led by private equity fund Gaw Capital Partners and Softbank Ventures Asia Corp.
The Series A round also saw the participation of new and existing investors of the start-up such as Next Billion Ventures, RHL Ventures Breeze, FEBE Ventures, RSquare, and Insignia.
The real estate platform is an integrated marketplace offering open house, closing-settlement services, and turn-key mortgage financing. It is believed to be the only 'firetech' or financial, insurance and real estate technology company in Vietnam which runs on a hybrid online-to-offline model with complete front-to-backend functions.
Since its inception in 2016, Propzy has facilitated over $1 billion in property transactions, said founder John Lee in a press release on the latest funding. He anticipates another record-setting year of growth as the company continues to expand its network and services.
Propzy will use the new funds to improve the efficiency of transactions from beginning to end and manage assets and logistics to streamline the entire real estate life cycle, such as leasing and purchasing of landed houses and high-rise condos.
It will continue its expansion into leasing services by leveraging the online-to-offline features of its platform, which has garnered robust month-over-month growth of 50 percent, said the press release.
Propzy will increase its team of sales staff from 400 to 1,300 over the next 18 months as it expands its network of 30 operating locations from mainly Ho Chi Minh City to 70 centers around the country including capital Hanoi.
Supporting Propzy's move to enhance customer experience in a growing market, Daniel Kang, senior partner of SoftBank Ventures Asia, said, "The security that the Vietnamese economy offers to property investors and home buyers is ideal for Propzy to thrive."
SoftBank Ventures Asia is the early-stage venture arm of SoftBank Group Corp.
Humbert Pang, Gaw Capital's managing partner, said, "Propzy is an example of the many macroeconomic successes in Vietnam. With its innovative breakthrough in real estate's offline to online business models, we see the immense potential of Propzy to skyrocket."
Gaw Capital, which focuses on real estate markets in Greater China and elsewhere, invests in the entire spectrum including residences, offices, malls, hospitality developments and logistics warehouses.
Vietnam has emerged as a thriving real estate market in Southeast Asia in recent years. However, the real estate industry has been slow to adopt new technology to improve services.
John Le, who is also CEO of Propzy, said, "Sellers see uncovering buyers' needs as a headache that slows the buying process. Therefore, we invited a group of world-class investors to provide an advanced solution."
Le is known as a serial entrepreneur behind many leading fintech companies, including LoanTrader and Portellus, with blue-chip investment from Goldman Sachs, CitiGroup, GE Capital, Zurich, FBR Capital and IAC.
Vietnam's vibrant economy is one of the fastest-growing in Southeast Asia.
While Propzy believes that Vietnam is on track to achieve 5 percent GDP growth in 2020, some analysts have forecast that it might drop to 4 percent from the 7 percent growth achieved in 2019 because of the impact of the coronavirus pandemic.
Research by the World Bank found that 70 percent of the Vietnamese population are considered economically secure.