PropTech
Ancillary piece in the organised Real Estate growth
It’s been a blog hibernation owing to multiple reasons and given the increase in number of subscriptions despite this thought of penning a short note on a company I am tracking. Also am happy to see few of the companies discussed in the past doing well and also part of twitter threads and 5x in 5 year twitter posts ;)
Thoma Bravo acquired Majesco Ltd’s US subsidiary around August 2020 at around $730 million and what followed post that was one of the cleanest distribution of funds to shareholders by an India listed company. Later in the year Thoma Bravo did another deal in the prop tech space by acquiring the listed co Real Page at around $10 bn valuation. Compared to this Indian real estate tech as a whole has barely seen investments of $300-400 mn!
Real Page clocking billion dollar plus revenues is almost an end to end real estate technology company offering everything under the sun for various types of real estate.
The Indian equivalent of RealPage only has $1.5 mn in revenue as technology adoption in the Indian real estate space has been slow but with the growing move towards the sector getting organised, I believe this is poised to change-
Interestingly Majesco Ltd (Soon to be Aurum PropTech Ltd) was acquired by Aurum which has reasonable experience in the real estate space, and currently engaged in development of 7 million Sq.Ft of real estate space.
Why did Aurum buyout 35% of Majesco?
What is the first step towards the PropTech Mission?
It acquired 51% stake in K2V2 which owns Sell.do and has recently launched Kylas (CRM for SMBs).
Aurum Proptech (erstwhile Majesco Ltd) now -
1) Has 1 lakh square feet of commercial real estate
2) 135 crore + cash
3) 51% stake in K2V2 (~1.5 USD revenue)
4) Planning to expand into the PropTech domain
The market cap of Aurum Proptech is now 230 crore!
The new promoter holding is still 35% which I believe would go up in the future given the mission. Past few months have been reading lot of reports on how Indian real estate is geared for change and everyone is now eyeing real estate stocks to be part of the portfolio. The discussion for Real Estate transition for some another day, rise of prop tech seems evident and Aurum is worth tracking for the developments.
There are more details in the latest Annual Report.