Quikr isn’t always about old stuff! They might be acquiring Housing.com soon

If all goes well, Quikr may soon be acquiring Housing.com. Three people aware of the development has confirmed to The Economic Times that the cash and stock deal could be struck at up to Rs 1,100 crore ($175 million) depending on the stock-cash split. In November last year, Housing had been valued at Rs 1,500 crore ($250 million).

"There have been talks (with Quikr), but there are other things to sort out first," one of the sources told ET, referring to the imminent management overhaul at Housing where Yadav, 26, has resigned as CEO. He has also mentioned that the deal is yet to reach the final stage of negotiation or financial due diligence. The deal hinges on the outcome of Housing board's meeting scheduled to be held on Tuesday when investors will seek to remove Yadav as CEO, the source said.

For Quikr, which is one of the eight so-called Indian 'unicorns' with billion-dollar valuations, the addition of Housing will open up a new revenue stream and add a well-known brand to its portfolio. Nearly a dozen investors including Tiger Global, Warburg Pincus, Steadview Capital and Norwest Venture Partners have pumped around $360 million in six funding rounds so far. This includes $150 million it raised in April this year, valuing the startup at over $1 billion.

Earlier this year, Quikr founder Pranay Chulet said the company will hire 500 people to beef up its online real estate business, Quikr-Homes.com For the investors in Housing, the deal will give them a chance to be a part of a larger business and cut their losses in a company whose fortunes have dwindled rapidly because of a spate of controversies triggered mostly by Yadav. Yadav, who led a dozen college-mates from IIT-Bombay to start Housing in 2012, has had public spats with venture fund Sequoia Capital and disparaged the intellectual worth of investors in his company. He resigned at the end of April, but was asked to stay on by the board which appointed a committee to oversee operations.

"The investors have been looking to exit for some time now - the startup has been making news for all reasons except the market it addresses," another person familiar with the talks confirmed the ET.