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CommonFloor likely to be acquired by Quikr: Sources

cmn-commonfloor

Commonfloor has informed MediaNama that it is currently in the process of raising funds and it has multiple options on the table. This statement follows a story in VCCircle which states the company is finalizing a deal to be acquired by Quikr for $112 million in a stock and cash deal. NextBigWhat had also reported that the company had been acquired by Quikr, citing sources, and said it was an all-equity deal valued at around $200 million.

Note that although CommonFloor has not explicitly denied any deal with Quikr, their statement (below) indicates that they’re raising funds, thereby suggesting that the acquisition has not been closed yet.

Contradicting Commonfloor’s official statement, a company source has told MediaNama that the acquisition is taking place, positioning the acquisition as a merger. According to the source, the two entities (Commonfloor and Quikr) will continue to operate independently, and both brands will continue to exist. In a sense it will be similar what happened to Flipkart acquired Myntra, where Flipkart owns Myntra, but the latter continues to exist as a separate site. VCCircle also added that Commonfoor’s founders, Sumit Jain, Vikas Malpani and Lalit Mangal would not leave the company following the deal.

CommonFloor’s statement:

“We are in the middle of fund-raising, and there are multiple options on the table. We have not yet finalised one. We are working at multiple levels to ensure our growth takes place in a sustained manner. As a company policy we do not comment on speculations, therefore kindly hold on as we will inform all the stakeholders when the time is ripe.  We are committed towards our vision of organizing real estate industry in India.”

Pranay Chulet, CEO of Quikr, did not respond to multiple calls and texts for a comment.

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Blaming the media

Interestingly, CommonFloor founder Lalit Mangal reacted strongly on Twitter to the VCCircle story alleging vested interests by the publication. In a statement issued to MediaNama, Commonfloor said:

“The wordings in the VC Circle article infers a negative tone and it is an attempt to misrepresent and demean our brand  by using terms like ‘The end of CommonFloor’  and ‘ jobs would be eliminated’  and also its terms of valuation, hypothetical numbers are used on a unreasonable basis. “

The co-founders had earlier denied reports of acquisition on Twitter. In October, VCCircle, Times of India and The Economic Times carried reports saying that the deal was in the final stages. At the time, Jain again accused the publications of vested interests.

In September, it was also reported that Quikr was in talks to acquire Mumbai-based realty portal Housing during the height Rahul Yadav’s ouster from the company.

QuikrHomes

Quikr launched QuikrHomes in September and the portal allows users search for residential, commercial or agricultural properties to either buy or rent, in various cities like Pune, Delhi, Chennai, Bangalore, Mumbai and Hyderabad. Quikr had made the announcement in April for the realty portal and at the time had said there were 20 lakh active real estate listings and had accounted for 50% of the transactions on the portal.

In October, Quikr made a strategic investment in Genesys International‘s venture AN Virtual Tech.

Commonfloor funding

Earlier in January, CommonFloor raised $15 million in a funding round led by Google Capital.  At the time, Jain said that they would be using the money raised in improving its platform for both buyers & sellers. The company claimed to have listed more than one lakh residential projects from across 200 cities on their platform and mapped over 10 million homes across the country.

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