Frontier Digital Ventures to inject cash in LankaPropertyWeb, aims to raise stake to 48 per cent
By Anisa menur a maulani for e27.com
Malaysian online classified operator Frontier Digital Ventures (FDV) announced on Monday that it is going to inject cash into Sri Lankan property portal LankaPropertyWeb, according to a report by Dealstreet Asia.
The Catcha Group-backed company aims to raise its stake from 37 per cent to 48 per cent, though the financial details of the deal were undisclosed.
FDV did not give further details on what they aim to use the funding for, but in a press statement the company revealed that the cash injection will help LankaPropertyWeb “cement its market leader position in Sri Lanka.”
FDV also claimed that LankaPropertyWeb has grown from 3,000 leads in December 2015 to 72,000 today, with the total listing also growing by 80 per cent.
In August, FDV raised US$22.9 million through issuing of 60 million shares in an oversubscribed IPO at the Australian Stock Exchange (ASX). It is the fourth of Catcha Group’s portfolio that has scored an IPO in the ASX.
Founded in 2014, the company has 16 online classifieds platform in its portfolio, ranging from cars, property, to general classifieds platforms. The companies operate in 19 frontier and emerging markets in Asia and Africa such as Pakistan, Myanmar, Nigeria, Ghana, DR Congo, and Morocco. It also has presence in South America with Panama-based property portal Encuentra24.com.
FDV offers management and operations expertise, as well as financial resources to its portfolio companies. As the business grows, it has the tendency to increase its stake, as in the case of Pakistani property portal Zameen.
First invested in the company in May 2014, FDV maintain its current equity shareholding in Zameen at 30 per cent, which was valued at US$27 million upon conclusion of the fundraising.