Vertex SEA & India leads Propseller’s US$12M Series A round

Singapore-headquartered tech-enabled real estate agency Propseller has secured US$12 million Series A funding led by Vertex Ventures Southeast Asia and India.

The round saw participation from existing investors Hustle Fund, Iterative, and Rapzo Capital, and new investors Partech Ventures, ICCP SBI, Vulpes Ventures, and Redbadge Pacific.

Jani Rautiainen (Co-Founder, PropertyGuru), Marta Higuera (Co-Founder, OpenAgent), Steffen Wicker (Co-Founder and CEO, Homeday), and Tushar Garg (Co-Founder and CEO, Flyhomes) also joined.

The funds will enable Propseller to scale its core business model, expand its line-up of services, and explore overseas markets.

The 50-people company plans to hire 200 new people across the marketing, operations, product, engineering, sales and real estate functions.

Also Read: What are the key emerging trends and technologies in proptech space?

Founded in 2018, Propseller employs in-house salaried agents backed by technology and centralised operations. The proptech firm controls every aspect of a real estate transaction and offers consumers a “transparent and reliable way” to sell a property for a commission as low as one per cent, half the market rate in Singapore.

In October 2020, Propseller raised US$1.2 million in seed funding from Hustle Fund, Iterative, XA Network, Rapzo Capital, Stein Jakob (Co-Founder, Lazada) and Ben Neve (Founder, Dot Property). Two years earlier, it closed a US$1 million seed funding round from industry entrepreneurs and senior executives.

Propseller claims to have grown its revenues by 1,000 per cent year-over-year in 2021 and reached profitability.

“We believe people deserve extraordinary service when selling their home, which often represents 70 per cent or more of their wealth. Yet, on average, consumers still deal with property agents who close less than two sales transactions per year each while generally charging a two per cent commission. Our business model addresses this industry challenge by elevating our service for consumers while charging a lower cost. Our real estate consultants each closed in 2021 25x more transactions than a traditional agent,” Adrien Jorge, Founder and CEO of Propseller, said.

According to him, Propseller the COVID-19 pandemic caused two shifts in consumer behaviours — 1) the flight from offline to online for everything, including high-value items such as real estate, and 2) unprecedented work-from-home movement making millions of consumers who want to move to a larger home than the one they are currently in.

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