Bengaluru: Online classifieds platform Quikr Wednesday introduced QuikrRealty, which will offer online and offline home brokerage services, mortgages and housing finance, through a tie-up with real estate brokerage firm HDFC Realty Ltd.
QuikrRealty will be operated as an independent brand under Quikr which includes the brokerage business of HDFC Realty Ltd, and the online real estate classifieds business of HDFC Red. HDFC Realty which was founded in 2000 currently has presence in 19 cities in India with over 300 expert real estate professionals.
The new product launch comes just a month after the mortgage lender Housing Development Finance Corp. Ltd (HDFC) Ltd sold both of its subsidiaries—HDFC Realty Ltd and HDFC Red—to Quikr for Rs350 Crore.
At a press conference in Bengaluru, HDFC managing director Renu Sud Karnad said the company picked a minority stake of 3% in Quikr as part of the transaction. The stake was valued at Rs357 crore. However, the entire shareholding of HDFC Realty and HDFC Red will be transferred to Quikr.
QuikrRealty will be able to tap into 30 million users currently registered with Quikr, and the company will assist the customer at every step of home buying from discovery of properties to completion of the final transaction.
Quikr already operates two real estate products including QuikrHomes, and CommonFloor which was acquired in early 2016. Users of both QuikrHomes and CommonFloor will soon be able to discover properties listed on HDFC Red and HDFC Realty Ltd.
For developers registered with QuikrRealty, Quikr will offer a facility to run customised promotions and campaigns using data analytics. Consumers on QuikrHomes will be able to seek site visits, make negotiations, and close the deal from the properties they shortlist. Quikr said that it will continue to work with external brokers in all cities across its platforms.
“After the recent regulatory changes, the stars are aligned for a strong market leader to step in and organize home buying in India. We are excited to be that market leader. HDFC’s continued strategic association with QuikrRealty, QuikrHomes and CommonFloor is a testimony to our leadership in real estate and in other large sectors that move the Indian economy," said Pranay Chulet, chief executive officer, Quikr in a statement.
Quikr has been on an acquisition spree since 2015 and has acquired 13 companies in total till date across various categories. It started acquiring companies after it shifted its business to a vertical approach from being a horizontal classifieds portal like Craigslist. For this, the company identified key business segments based on user interest and built products on top of each segment instead of expanding horizontally as a single classifieds portal.
Mint reported in January that Quikr is generating half of its revenue from companies it acquired. The home segment is its largest vertical, commanding a 30% share in terms overall revenue.