The industrial actual property brokerage market in South Korea is fragmented, which makes discovering a brand new workplace for tenants a problem attributable to inaccurate itemizing data, excessive brokerage charge and complicated paperwork. A Seoul-based proptech startup known as Rsquare constructed a data-driven platform to digitize the method, enabling tenants to check a number of properties and discover an workplace.
The startup has raised a $72 million (85 billion received) Collection C spherical from a single backer STIC Investments, JohnWoo Lee, CEO of Rsquare, stated in an interview with FiratNews. The most recent funding brings its complete raised to roughly $95 million.
Rsquare will spend the proceeds on advancing its AI-based proptech platform, accelerating its industrial constructing transaction and success facilities brokerage service and growing headcount to 400 staff by subsequent 12 months, Lee stated. It has 354 staff as of October.
The Seoul-headquartered firm additionally plans to make additional investments within the proptech sector in South Korea and Southeast Asia, together with Singapore, Vietnam, and Indonesia, Lee stated. Rsquare has invested in a Vietnamese proptech startup Propzy in 2020 and an Indonesian proptech firm Mamikos in 2019.
Rsquare, which opened an workplace in Vietnam in June, is ready to enter Singapore this month and Indonesia in 2022, Lee added.
Based in 2009, Rsquare launched its workplace brokerage service in 2015 to assist startups discover workplace area and has since expanded its platform to serve small and medium enterprises (SMEs) and bigger firms. In 2016, the corporate arrange a wholly-owned subsidiary, Rsquare Design, to supply workplace inside design companies within the wake of $3.8 million Collection B funding from Yahoo Japan Capital and SoftBank Ventures Asia.
Lee identified that Rsquare’s key differentiator is its industrial constructing knowledge, together with the workplace landlords’ and tenants’ data, the startup has gathered since its launch. Rsquare claims it has amassed greater than 120,000 industrial constructing knowledge throughout 50 places in South Korea and round 10,000 industrial properties knowledge in Vietnam. Its real-time database gives detailed data and reduces greater than 50% of time and prices in comparison with the normal industrial brokers, in accordance with the corporate. Rsquare has dealt with greater than 10,000 workplace brokerage transactions with over 21,000 shoppers in South Korea.
The pandemic has been laborious on the industrial actual property market globally. Rsquare, which additionally grappled with the pandemic, is being recovered rapidly as many Korean firms began to reopen their workplaces from the second half of final 12 months, Lee stated. The corporate posted income of $55.2 million in 2020 and $85 million for the earlier eight months. Rsquare expects its income to double by the top of 2021, in comparison with final 12 months, as COVID-19 lockdowns ease, in accordance with the corporate.
As for its exit plan, Rsqaure will not be planning to go public quickly; Lee stated it could not occur in two years. The corporate has been approached by world strategic buyers for M&A, together with WeWork, about two years in the past, however couldn’t discover any synergy with them on the time, Lee stated when requested relating to its M&A chance. Rsquare will give attention to increasing its enterprise and penetrating additional into abroad markets for the subsequent two years, Lee added.