MagicBricks Raises Rs.30 Cr Investment from Parent Co. Times Internet

MagicBricks raises Rs.30 crores from Times Internet (its Parent Company) which it has decided to use towards brand building and marketing initiatives. The real estate company is all set to aggressively engage in product development activities and curation of content on the portal.

Times Internet subscribed to 30 million or 10% non cumulative optionally redeemable preference shares of MagicBricks Realty Services Ltd, which runs MagicBricks.com, on 3 January, according to the registration documents filed.

“We see ourselves playing a much bigger and helpful role in the property buying or renting process of a consumer.,"CEO, Sudhir Pai said.

Their primary effort is to further scale the core platform from a traffic and a listing acquisition perspective. And the aim is to have over 85% of all available properties to be listed on MagicBricks and to aggregate over 50% of all property seekers on our site.

Some Insight on Numbers
MagicBricks and 99acres are generally believed to be the leading firms in the space. While credible data on sales made or rental deals closed on the platforms is not available, MagicBricks leads the stack in terms of traffic.

In terms of revenue, too, MagicBricks was better placed than rivals. In 2015-16, the company posted operating loss of Rs. 78 crore on total revenue of Rs. 126 crore, according to ROC filings. 99acres, in comparison, posted Rs. 91 crore of operational losses on net sales of Rs. 110 crore, as per details in Info Edge’s annual report.