REA Group said that the combined company will provide compelling property marketplaces in Singapore and Indonesia, while delivering the best digital platforms to property professionals and helping them grow their businesses. According to 99.co, the JV will place the combined company as the market leader in Indonesia, as well as placing them in a good position to take market leadership in Singapore.
The agreement will see the JV company being formed by the combination of 99.co and REA’s businesses in Singapore (iProperty.com.sg) and Indonesia (Rumah123.com). The JV company will be led by Darius Cheung, 99.co’s CEO. REA Group Chief Strategy Officer Henry Ruiz and REA Group Chief Financial Officer Janelle Hopkins will represent REA Group’s interest as Non-Executive board directors. REA Group will contribute USD$8 million in working capital to the JV.
The JV company will leverage the know-how and capability of REA Group and the entrepreneurial expertise of 99.co. REA Group is a market leading Australian and South East Asian digital property company, operating property portals in Australia, Malaysia, Hong Kong, and Thailand, while 99.co, founded by Darius Cheung in 2014, is the fastest growing property platform in Southeast Asia, having grown its user base 32 times in the past two years.
REA Group CEO, Owen Wilson, said “the Singapore marketplace is ripe for disruption. Our customers in this market want a true industry partner who can deliver world leading products and experiences.”
“Joining forces with 99.co creates the market leading presence in terms of customers and listings. Combined with our expertise and experience in other countries where we are the clear market leader, this presents a fantastic opportunity to rapidly increase our market share in these expanding growth markets,” said Wilson.
REA Group Chief Strategy Officer and CEO Asia, Henry Ruiz, said that REA has admired the innovation and speed that Darius and his team have brought to the marketplaces that they serve, adding that “the formidable combination of our talent, best of breed technology, digital expertise and customer relationships will supercharge our ability to compete and win in Singapore and Indonesia.”
Darius Cheung, CEO of 99.co, said “this is a truly exciting opportunity to be joining forces with a global leader like REA Group, a company that also shares our customer centric, relationship driven approach.”
Cheung said that the JV company sets the scene for the company to create the number one place for property seekers in Singapore and Indonesia, thus providing property professionals with the best value.
“Our innovative DNA plus REA’s unrivalled experience and resources makes this partnership a lethal combination Southeast Asia has not seen before,” said Cheung.
Existing 99.co shareholders, including the founding partners, Sequoia, Facebook co-founder Eduardo Saverin, Allianz X, MindWorks Ventures, East Ventures and 500 startups will have shareholdings in the JV company totalling 73% while REA Group will be the largest shareholder with a 27% shareholding.
Pending confirmation, the transaction is anticipated to be completed in the 2nd quarter of the 2020 financial year, with the new JV company becoming fully operational across both Singapore and Indonesia in early 2020.
Cover Image: The JV between REA Group and 99.co will place the combined company as the market leader in Indonesia, as well as placing them in a good position to take market leadership in Singapore. (Image: Pixabay)