How PropertyGuru was hit by Asia’s property market blues

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Hi readers,

Owning a property in Singapore is a dream for many – albeit an expensive one unless you’re talking about applying for a build-to-order (BTO) flat, of course. These homes can be comfortably paid off so long as you’re employed and saving enough. But my real goal is to own a shoebox apartment in a remote town, complete with houseplants and a cranky cat.

While I’ve placed that (day)dream on the backburner for now, people’s reluctance and inability to purchase property – largely because the pandemic – has caused one of Singapore’s largest proptech marketplaces to suffer.

Today we look at:

• Why PropertyGuru’s revenue and valuation have fallen for the first time in years
• A startup’s dream to become the “Tesla of food”
• Other newsy highlights such as CarTrade’s planned US$272 million IPO and Gojek’s latest minority stake

PREMIUM SUMMARY

PropertyGuru’s woes

For the first time since at least 2017, PropertyGuru – one of the leading proptech marketplaces in Singapore, with a presence in Malaysia, Indonesia, Thailand, and Vietnam – saw its revenue and valuation fall, according to public filings.

Last year, the company’s revenue dropped some 8%, from US$66.7 million in 2019 to US$61.9 million in 2020. That’s according to the company’s filings with Singapore’s Accounting and Corporate Regulatory Authority (ACRA).

• Sector-wide blows: It’s no secret the real estate industry has suffered heavy blows since last year. The commercial real estate sector in the Asia Pacific region saw the total value of transactions plummet almost 40%, while retail real estate purchases made in Singapore by non-residents hit their lowest level since 2003.
• Ploughing through: While PropertyGuru earned US$27 million in 2020 (up from US$24 million the year before) through agents who continued their membership or subscription to its platforms, its advertising revenues from developers plummeted by 35%.
• SPAC-ulation: Meanwhile, overall revenue from developers saw a 46% decline from the year before. Despite these setbacks and a failed IPO attempt in 2019, PropertyGuru is reportedly considering a US listing through a merger with a special purpose acquisition company (SPAC) as early as this year.

Read more: PropertyGuru’s revenue and valuation fall for the first time in years

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