Post Merger with Hous­ing, PropTiger Lays off 200

The Economic Times - - Economy: Macro, Micro & More - Ankit.Sharma3

@timesin­ter­net.in

New Delhi: On­line real estate ser­vice provider PropTiger, just over a month into its merger with Hous­ing.com, has be­gun to ra­tio­nalise its work force, lay­ing off around 200 em­ploy­ees. The News Corp-backed com­pany has given two months’ salary in ad­vance to those ter­mi­nated, said a source fa­mil­iar with the mat­ter. About a month back PropTiger merged with Hous­ing.com in an all-stock deal at an undis­closed val­u­a­tion. The com­pany had ac­quired prop­erty clas­si­fieds por­tal Makaan.com in 2015.

“As with all merg­ers, there are some over­laps, and the re­source op­ti­miza­tion is to lever­age the avail­able syn­er­gies and com­ple­men­tary skills. We have stated ear­lier that there will be a min­i­mal im­pact on our tal­ent pool. We highly value each and ev­ery in­di­vid­ual for their con­tri­bu­tion, and will pro­vide full sup­port to each one in ev­ery way pos­si­ble,” said the com­pany's of­fi­cial state­ment.

How­ever, ac­cord­ing to sources, the num­ber of ter­mi­nated em­ploy­ees may be well above 200. This is the sec­ond ma­jor layoff the com­pany has car­ried out in the last three years.

Cost-cut­ting is be­ing at­trib­uted as the main rea­son be­hind lay­offs. How­ever, spec­u­la­tion is rife that the com­pany is fast burn­ing its ex­ist­ing funds.

Ac­cord­ing to Tofler, a re­search plat­form for In­dian com­pa­nies, the com­pany earned rev­enues of .₹ 8.43 crore in FY16, which was 63% less than the pre­vi­ous year’s .₹ 22.74 crore. It had in­curred a loss of .₹ 13.93 crore in FY 2016.

Af­ter the merger with Hous­ing.com, REA Group, a key in­vestor in PropTiger, had said that it will in­vest $50 mil­lion in the joint en­tity while Softbank will put in $5 mil­lion. The com­pany’s other in­vestors in­clude SAIF Part­ners and Ac­cel Part­ners.

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