In an interesting development, online classifieds portal Quikr is said to be looking to buy Housing.com for Rs 1,100 crore ($175 million). Due to the many controversies surrounding the company mostly triggered by CEO Rahul Yadav, the investors are said to be looking at making a distress sale even though the company’s current value is Rs 1,500 crore ($250 milion).
Economic Times cites sources to confirm that a cash and stock deal may be struck between the two companies. The details of the deal are currently being worked out. “Right now the deal is 70 percent in stock; if the stock amount is over 80 percent then the valuation can increase to $175 million,” one investor in Housing told the publication.
The report also states that the deal depends upon Housing.com’s meeting on Tuesday that will see the board member seek the removal of Yadav from his position. Reportedly, Yadav has agreed to step down from his CEO position in an internal email sent to the members already.
Yadav has courted many childish controversies in the past year, adding to Housing.com’s dwindling fortunes. “The investors have been looking to exit for some time now the startup has been making news for all reasons except the market it addresses,” another source told the publication.
It all triggered off two months ago when Yadav wrote a scathing resignation letter to the board members calling them intellectually incapable, and that no sensible discussion with them was possible. He however, pulled back his resignation later and claimed to have made up with the board members.
He earned the title of being the Arvind Kejriwal of Indian Tech startups when he gave up all of his shares to employees, and even asked Zomato CEO Deepinder Goyal and Ola Cabs CEO Bhavish Aggarwal to do the same. Yadav, along with his IIT Bombay friends started Housing.com in 2012. The company, as mentioned above, is now valued at Rs 1,500 crore and has gained $120 million is total funding so far.
As for Quikr, recent reports indicate that it is looking to beef up its online real estate business, and will also hire almost 500 employess for this purpose. The acquisition of Housing.com will only increase its footprint and strength in the online real estate space.