After more than a year of numb period, Mumbai-based real estate portal Housing.com has raised Rs 100 crore as fresh capital from Softbank, which has been the biggest investor in the company, and is expected to increase its hold further. Housing last raised funds of $100 million in November 2014 and 14 long months to raise additional funds today.
Notably, a few days back - in 'Start-up India' event, Softbank Founder and Chief Executive Officer (CEO) Masayoshi Son told that he would accelerate investment in India and Housing is first tranche this year from Japanese conglomerate.
Softbank now holds more than 21 per cent in Housing. Softbank's India portfolio includes Delhi-based Snapdeal and Paytm, apart from Housing and Ola.
A statement released by the Housing.com said it would be using the funds to "drive its new strategy and growth plans". Housing has so far received more than $100 million in funds. "Softbank is one of the world's largest and most successful investors. Their continued support, as both investors and advisors, is invaluable to us and signifies their long-term commitment. We are now well-capitalised to aggressively execute on our focused strategy and growth plans," said Housing CEO Jason Kothari. Housing's cash burn had crippled the firm in the first half of 2015 and played a part in the restructuring. Son, however, said at the start-up summit that cash burn in some businesses was a necessary evil.
This week, Housing appointed cofounder Snehil Bakshi as its new chief product officer.
After controversial spat and ouster of then Housing CEO Rahul Yadav, the company shutdown some of its units, reduced its workforce and revamped its core business team to increase focus on profitability.
And, last year in October, Housing saw a plunge in its valuation from $400 million in 2014 to less than $50 million in October 2015.
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