Vietnamese proptech startup Propzy to shut down

Vietnamese proptech startup Propzy has begun the process of shutting down its business in Vietnam and terminating labor contracts with employees starting September 13, Tech in Asia has learned.

Propzy founder and CEO John Le / Photo credit: Propzy

In an internal email, co-founder and CEO John Le said that the company’s efforts to grow the business amid the pandemic resulted in significant losses that it was not able to recover due to continued lockdowns in Vietnam.

“Our inability to raise funding amidst the backdrop of an uncertain global environment was the final ‘jab of the knife’ in our young startup,” he said in the email.

The note also suggested that all salaries will be paid in full up to September 13 and that staff would receive severance payment. While the number of employees affected by Propzy’s closure remains unclear, the company’s LinkedIn profile shows that it has over 200 employees.

Tech in Asia has reached out to Le for comment regarding the closure.

Recently, Propzy was in “very early stage” talks to be acquired by Singapore’s 99 Group. However, it’s uncertain whether 99 Group is still pursuing the deal.

See also: Why property tech is Vietnam’s next must-watch sector

Founded in 2016, Propzy was one of the most notable proptech startups in Vietnam. The company positioned itself as an end-to-end platform that provides a safe environment to buy, sell, and rent real estate.

In June, Le told Tech in Asia that the startup had to cut 50% of its staff, mostly in sales, as the company pivoted to develop new products and would soon announce a new funding round.

In total, the company raised about US$33 million from investors, including a US$25 million series A round led by Gaw Capital Partners and SoftBank Ventures Asia in December 2020.