CommonFloor Acquired By Quickr For $200 Million
It's a deal done - Quickr one of the largest online classifieds portal in India has acquired real estate portal CommonFloor for about $200 million (~Rs. 1330 cr). 99% of the total acquisition is done and what remains now is signing a few papers, informed Quickr spokesperson to VCCircle who reported the deal first on the Internet. We are not sure if any cash was involved in the deal.
Post acquisition, CommonFloor will continue to operate as a separate company. Various sources claim that CF had raised to the tunes of about 60+ crores from national and international venture funds. In the last financial year, the company generated a total revenue of about 44 crores.
Once the acquisition is done, we hope that there won't be any layoffs at CommonFloor. The deal means a lot to Quickr - as it will give them access to all of CommonFloor's existing user base and grow faster than its competition aka housing.com. Housing is currently handling its own internal troubles, layoffs and restructuring. I think the timing of the deal is right on the spot.
Post acquisition, CommonFloor will continue to operate as a separate company. Various sources claim that CF had raised to the tunes of about 60+ crores from national and international venture funds. In the last financial year, the company generated a total revenue of about 44 crores.
Once the acquisition is done, we hope that there won't be any layoffs at CommonFloor. The deal means a lot to Quickr - as it will give them access to all of CommonFloor's existing user base and grow faster than its competition aka housing.com. Housing is currently handling its own internal troubles, layoffs and restructuring. I think the timing of the deal is right on the spot.
Replies
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Satya Swaroop DashSo every start-up seems to follow the Eric Cartman’s principle when founding a start-up.
Commonfloor was a worthy competitor to Housing and it was high time someone grabbed it up. Although Quickr wasn’t the company that people were expecting nor is the $200 million deal but that is the weirdest thing in India though. Websites such as Quickr and OLX which are supposed to be India’s answer to Craigslist are much more ostentatious than the humble American website. They have advertisements on TV backed by Bollywood A -listers like Ranveer Singh. Any ideas why they spend so much money on advertising a website that is meant for people to dispose their things?
PS: I hope now CommonFloor will have some decent advertisements as compared to this dreary low-cost rubbish.
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Kaustubh KatdareRight said, Satya. The decisions to acquire or sell a company are mostly done by the investors who hold a major stake in the company. Expect that to be the story where the founders own a minority stake and the company is totally in the hands of the investors.
Most of the times, the investors of the company are the same. I guess in this case, the common investor was Tiger Global. So the acquisition only means that they transfer money from one bank account to another, sometime in the same bank with different names. Only the minority stakeholders - typically founders and early employees become rich in the process.
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