Quikr acquires HDFC Realty, HDFC Developers for Rs 357 cr

Quikr acquires HDFC Realty, HDFC Developers for Rs 357 cr

Quikr, India leading digital classified business player, on Thursday announced that it will acquire  HDFC Ltd subsidiaries HDFC Realty and HDFC Developers in an all stock deal.

According to a statement issued by Quikr, the deal also gives equity stake for HDFC in the company.  HDFC will get over 3% stake in Quikr India in lieu of sale of its stake in the two subsidiaries for Rs 357 crore.  

HDFC Realty is the offline brokerage business with a presence across residential and commercial properties as well as consulting and valuation services.  It has a 300 member in- house sales team and 7,000 strong nationwide broker network.

HDFC Developers Limited runs the HDFC RED platform which is into online sales.  RED  has 7,000 project listings on its platform and generates traffic of over 80,000 unique visitors per month.

The deal, which values Quikr India at Rs 10,385 crore, is expected to be concluded in this fiscal. Quikr has been ramping up its strength in online real estate brockerage space by acquiring four companies, including Commonfloor.

In a BSE filing, HDFC said that it has approved the sale of 100% of the equity share capital of HDFC Developers Ltd and HDFC Realty Ltd, its wholly-owned subsidiary companies to Quikr India Pvt Ltd at a total consideration of Rs 101.99 crore and Rs 254.98 crore, respectively.

Quikr is India's largest classifieds platform that runs multiple vertical businesses across real estate, automobiles, jobs, services and goods with 30 million monthly users.

Commenting on the development, HDFC's Managing Director Renu Sud Karnad said the company  is happy to associate with Quikr.

"The future of real estate is digital and Quikr has built a robust technology platform for consumers with products for developers and brokers who stand to benefit in the post-RERA regime,"said Karnad.

Karnad said HDFC hopes to derive value from Quikrs diversified customer base, while offering our strengths in the real estate sector.

Pranay Chulet, Founder and CEO, Quikr, said the partnership with HDFC has come at the most opportune time. "Indian real estate industry is undergoing fundamental transformation, creating great opportunities for those who want to bring new, innovative solutions for all industry stakeholders," he said.

Chulet said he  finds great synergies between Quikr and HDFC as they we start working together to bring a seamless online-to-offline platform to developers and consumers.

"We are excited to combine the force of the Quikr and HDFC brands as we continue to innovate for India," he said in a statement.

Kotak Investment Banking was the advisor to HDFC for the deal, while Quikr was advised by Avendus.  

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