Housing.com acquires Realty Business Intelligence in Rs 10 crore deal

Housing.com acquires Realty Business Intelligence in Rs 10 crore deal

Author | exchange4media News Service | Saturday, Jun 13,2015 9:33 AM

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Housing.com acquires Realty Business Intelligence in Rs 10 crore deal

The Indian realty market is one of the fastest growing, yet continues to be plagued by a variety of risks. In a move to reduce this risk factor, the real estate digital platform, Housing.com recently signed a Rs 10 crore deal to purchase 100% equity of Realty Business Intelligence, an organisation focused on risk assessment for realty projects.

The acquisition will enable Housing.com access to Realty BI’s research and knowledge to augment its due diligence efforts to ensure verified listings, risk free transactions and secure investments.

Realty BI in return will gain Housing.com’s vast database of realty developers and end consumers.

Commenting on the acquisition, Rahul Yadav, CEO, Housing.com stated, “Housing.com has always endeavoured to build a transparent realty ecosystem wherein consumers can make sound and informed decisions when investing in new projects. I have often heard of disturbing instances where a developer having permission to construct a building up to 16 floors, selling inventory on 17th or 18th floor to consumers. Through our acquisition of Realty BI, Housing.com strengthens its technology platform and consumer promise to deliver a powerful collateral risk management platform addressing the entire due diligence lifecycle to validate new projects. With our combined strength, we aim to remove ambiguities in the realty industry and bring about faster growth for the industry.”

Founded by ex-bankers, Realty BI provides a wide array of solutions encompassing due diligence, back-end research, project monitoring and business intelligence catering to lenders, investors and buyers. The company has been working with banks, HFCs and NBFCs across the country to provide a unified collateral risk assessment platform assuring a minimum 50% reduction in overall costs and  back-end work related to due diligence.

Rajeev Nohwar, Founder and CEO, Realty Business Intelligence explains the work that will be done following this deal, “Given Housing.com’s commitment to removing information asymmetry from real estate, we believe there are huge synergies between the companies striving to bring transparency in the realty industry. Backed by our comprehensive project due diligence and monitoring services accompanied by this association with Housing.com, we aim to scale our business across key metros as well as expand our customer base to now empower retail investors to assess risks associated with investments.”

Commenting on the impact of the acquisition on the industry, Mr. Sachin Chaudhary, Business Head – Indiabulls Housing Finance Limited added, “The Indian real estate industry is witnessing phenomenal growth, however the sector continues to be plagued by rampant malpractices related to delayed project approvals and gaps in execution. This poses significant challenges for individual buyers and investors and lays obstacles in seamless approvals of home loans, necessitating strong due diligence norms for upcoming realty projects.  Housing.com’s acquisition of Realty BI, strives to minimise scepticism in the real estate sector by ushering risk-averse investments and greater transparency for end users.” 

Sumir Verma, Mersis Advisors, the investment banking firm that is advising Housing.com on all M&A transactions said, “Start-ups that want to disrupt their industries will need to create real-value proposition for the ecosystem. Housing.com is leading on this front following a clear strategy of make or buy, to quickly scale its offerings for all its stakeholders.”

Earlier this year, Housing.com had acquired Indian Real Estate Forum (IREF), to provide trustworthy information and end-to-end services to all its stakeholders.
 

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