Revenue of REA India that owns Housing.com jumps 92 pc to Rs 300 cr in July-June


PTI | New Delhi | Updated: 20-09-2022 16:01 IST | Created: 20-09-2022 16:01 IST
Revenue of REA India that owns Housing.com jumps 92 pc to Rs 300 cr in July-June
  • Country:
  • India

Revenue of proptech firm REA India, which owns Housing.com, grew 92 per cent to nearly Rs 300 crore last fiscal year ended June on better traffic and revival in housing demand, its CEO Dhruv Agarwala said. REA India, a part of Australia's REA Group and US-based News Corp, will continue to invest to grow its three portals Housing.com, PropTiger and Makaan.com for establishing clear market leadership, he said.

In an interview with PTI, REA India Chief Executive Officer (CEO) Dhruv Agarwala said the company expects high double-digit growth in 2022-23 fiscal year(July-June) and losses to reduce from FY24 onwards.

Asked about the financial performance of FY22, Agarwala said Housing.com contributed nearly 80 per cent to its total revenue as the platform has become the market leader in terms of traffic.

''Last (fiscal) year was a very good year for us. We grew our revenues by 92 per cent and for the first time, on Housing.com, we achieved market leadership in October last year and that leadership position has continued. ''So I think that is one thing which continues to be a positive for us, and we are still at the number one position. And that has been the big,'' he told PTI.

Besides the surge in traffic at Housing.com, Agarwala attributed the rise in revenue to strong revival in housing demand after the second wave of the pandemic.

He highlighted that Housing.com revenue in the quarter ended June was for the first time higher than its closest competitor 99acres.com.

''So now we are pretty confident that, not only are we number one from the point of view of traffic but also from the point of view of revenue we have caught up,'' he said.

Agarwala said REA targets to emerge as number one in terms of revenue during 2022-23 fiscal year as well.(July-June).

On the break-up of revenue among three portals, he said Housing.com was close to 80 per cent of the overall revenues and the remaining was PropTiger. ''Makaan.com monetization is actually now next to negligible. So most of the revenues come from PropTiger and Housing.com.'' On the revenue guidance for current fiscal year, Agarwala said the company does not give projections but it would be a high double-digit growth. However, the REA CEO felt that it would be difficult to encore the last year's performance of 92 per cent growth, he agreed.

In reply to a query about the factors driving growth, he said the company continued to invest in business, technology and brand during the pandemic ''rather than pulling back''. ''We never laid off anybody, we in fact, hired more people. We continued to invest in our product and technology, launched a new platform such as Housing Edge, which is doing very well for us. We continue to spend money on our brand and were the leading spender in terms of brand building during all of COVID,'' he observed.

Agarwala termed it a brave decision and the best move that paid off.

Increased digital adoption in the real estate sector also helped the company.

''Third thing is, I think, residential real estate received a big boost in a funny way because of COVID. I think people's relationship and equation with a home changed. Everybody realised that during a time like COVID, home was their only safe haven. That, I think gives a renewed lease of life to residential real estate,'' Agarwala said.

Low interest rates on home loans, stamp duty cuts in a few states were also major demand drivers for residential segment.

On profitability, Agarwala said: ''We continue to invest in business. Our EBITA losses margins were... in line with what our projections were. So it wasn't as if we were burning money to get that revenue. Even this fiscal year, as we look at the business. we are continuing to invest, but from financial year FY24 onwards, we expect to see the business starting to reduce its EBITA losses.'' In December 2020, Australia's REA Group acquired a controlling stake in REA India. It has 17 offices across India with corporate office located at Gurugram, Haryana. The company assists consumers through their entire home seeking journey all the way from initial search and discovery to financing to the final step of transaction closure. Housing.com, which was founded in 2012 and acquired by REA India in 2017, is leading full stack proptech platform for homeowners / home seekers, landlords,developers, and real estate brokers. It offers listings for new homes, resale homes, rentals, plots, commercial spaces and co-living spaces in India. Founded in 2011, PropTiger.com is a housing brokerage firm. Makaan.com was acquired by REA India in May 2015 and it is an advertising platform.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Give Feedback