Real E-state directory portal MagicBricks acquired property analysis firm Properji.com for an undisclosed amount of acquisition money with a target to provide indepth analysis of property to help buyers in buying decision. This is the first acquisition of MagicBricks.
Started in 2013, Properji has presence in Bengaluru and provides detailed reports property to buyers and has prepared reports for about 100 projects. With the help of acqui-hired Properji, MagicBricks is planning to explore more than 10,000 projects in coming six months. The acquisition brings on board Priya Maheshwari and Guruprasad Bangle, co-founders of Invact Technologies Pvt. Ltd that operates Properji.com.
Magicbricks CEO, Sudhir Pai stated about the deal, “We have acquired Properji.com which does independent analysis of projects. This will help the consumer to make an informed property buying decision. Given our reach and scale, we would be taking this platform to six metros including Bengaluru. We would like to prepare report for 10,000-15,000 projects, both completed and under-construction, having great demand.”
As part of revenue generation, company is planning to provide the part of report at free of cost to consumers while part of it at chargeable basis.
“Armed with the research and in-depth analysis that we are providing, consumers will now have strong tools to decipher the realty market in a much better way”, said Bangle of Properji.
The acquisition would help MagicBricks to strengthen its consumer proposition by offering in-depth information and analysis of projects that help consumers to choose the project that best suits their needs, the company said.
Lesson for entrepreneur is that the business model inspired by the fact “Housing for X” or small extension of biggie will face problem of market competition at high rate. Similar model getting customer attention would attract market leading giants very soon. A product that can’t be easily developed and/or have good traction; will have high probability of acquisition. For sustainability of business model, entrepreneurs working on free model should convert it in premium model to generate revenue. Operational excellence is another tactic to ensure the sustainability.