RealAcres, Mumbai based real estate portal has been acquired by iProperty Group Asia Pte Ltd, Malayasian arm of Australian Firm, IPGA.
Launched in 2005, RealAcres is mainly focused on Western India properties and has over 2.11 lakh listings.
IPGA would own 60% of the shares in the business, with an option to acquire the balance of 40% based on future earnings. On completion of the initial stage of the transaction, IPGA would invest about A$0.53 million in working capital in four equal tranches into the business in return for 43% of the shares in the company. Subsequently, IPGA would swap shares for a further 17%, with the price based on performance resulting in IPGA owing 60% of the shares in the company [Reuters]
Expect more consolidation in this space, as MNCs need to expand in other geographies and cannot afford to take the organic route, while Indian startups will reap the benefit of staying in the ground.