CommonFloor, the India-based realty portal backed by diversified conglomerate Alphabet, is close to being acquired by classified listings service Quikr’s real estate subsidiary Quikr Homes, the Economic Times reported today.
The deal, which is expected to close within a fortnight, values CommonFloor at $200m and will consist of an equity swap, delaying investors’ opportunity to cash out until the merged company goes public. The transaction was reported in November to be worth $160m in cash and stock.
CommonFloor and Quikr have reportedly been discussing the acquisition for the past six months. CommonFloor’s three founders will gain a board seat and remain with the merged company for at least two years, according to the terms of the agreement.
The two businesses will continue to operate as separate brands but will work together to support each other’s growth. CommonFloor will tap into Quikr’s traffic and reach, while Quikr will use CommonFloor to increase property sales.
Founded in 2007, CommonFloor operates an online real estate platform that lists some 500,000 properties for sale.
CommonFloor has secured approximately $63m in funding, with Google Capital, the growth equity arm of Alphabet, investing an unconfirmed $15m in January 2015. Its other backers include venture capital firm Accel Partners and investment firm Tiger Global Management.
Quikr has obtained about $350m in funding to date from investors including e-commerce company eBay, communications technology developer Nokia, investment firm Tiger Global and Norwest Venture Partners, a VC firm managing funds for financial services provider Wells Fargo.
Quikr was originally said to be seeking an investment from Tiger Global at a $1.5bn to fund the acquisition, though no mention of that deal was made by Economic Times’ sources.