Blox to Acquire Justo Stake for Rs 3.50 Bn
Real Estate

Blox to Acquire Justo Stake for Rs 3.50 Bn

Blox, a proptech company powered by artificial intelligence, is on the verge of acquiring a controlling stake in Justo, a mandate brokerage firm with a strong presence in Maharashtra, India. The deal is valued at Rs 3.5 billion and is set to be finalised with a combination of cash and stock, according to insiders familiar with the matter.

The significance of this acquisition is magnified against the backdrop of the increasing synergy between India's real estate and the burgeoning proptech sector, which has fundamentally changed the dynamics of property transactions.

Both Blox and Justo presently have annual mandate businesses of approximately Rs 35 billion each. This strategic acquisition is expected to reinforce Blox's standing as one of the leading proptech companies in India, boasting a consolidated Gross Merchandise Value (GMV) of around Rs 80 billion across its diverse business segments. Blox will secure a majority stake in Justo through this acquisition, allowing Justo's brokers and developer partners to tap into Blox's cutting-edge artificial intelligence (AI) sales and marketing technology.

Justo is a platform that connects real estate developers with home buyers and has successfully facilitated transactions across more than 80 real estate projects, involving over 4.2 million square feet of property.

Blox, founded in 2020, is a fully integrated online real estate service that aims to streamline the home-buying experience for customers. It provides swift site visits, along with transparency and convenience throughout the comprehensive home-buying journey. Each homebuyer is assigned a relationship manager who assists with virtual and physical site visits across the city.

In May of the previous year, Blox acquired Plinthstone REMA, a property sales and marketing company, for $1.5 million, which was incorporated into its portfolio under the name "Blox Exclusive." In December, Blox secured $12 million in a series A funding round, the largest in India's proptech sector. The funding was backed by existing investors from Silicon Valley, new strategic investors, and notable angels, including Kunal Shah, founder of CRED.

Although the proptech sector in India is still in its nascent stage, industry experts believe it has significant potential for growth and development. Despite experiencing a 48% surge in the number of proptech startups in the country following the pandemic, they still account for only 6% of the total recognised startups in India. Out of approximately 65 unicorns created in India in the past year, only a handful belong to the proptech sector.

Proptech's steady growth in India over the last couple of years, propelled by the digital acceleration caused by the COVID-19 pandemic, has been instrumental in enhancing transparency and providing access to data related to transactions in a sector that has traditionally been opaque.

Blox, a proptech company powered by artificial intelligence, is on the verge of acquiring a controlling stake in Justo, a mandate brokerage firm with a strong presence in Maharashtra, India. The deal is valued at Rs 3.5 billion and is set to be finalised with a combination of cash and stock, according to insiders familiar with the matter. The significance of this acquisition is magnified against the backdrop of the increasing synergy between India's real estate and the burgeoning proptech sector, which has fundamentally changed the dynamics of property transactions. Both Blox and Justo presently have annual mandate businesses of approximately Rs 35 billion each. This strategic acquisition is expected to reinforce Blox's standing as one of the leading proptech companies in India, boasting a consolidated Gross Merchandise Value (GMV) of around Rs 80 billion across its diverse business segments. Blox will secure a majority stake in Justo through this acquisition, allowing Justo's brokers and developer partners to tap into Blox's cutting-edge artificial intelligence (AI) sales and marketing technology. Justo is a platform that connects real estate developers with home buyers and has successfully facilitated transactions across more than 80 real estate projects, involving over 4.2 million square feet of property. Blox, founded in 2020, is a fully integrated online real estate service that aims to streamline the home-buying experience for customers. It provides swift site visits, along with transparency and convenience throughout the comprehensive home-buying journey. Each homebuyer is assigned a relationship manager who assists with virtual and physical site visits across the city. In May of the previous year, Blox acquired Plinthstone REMA, a property sales and marketing company, for $1.5 million, which was incorporated into its portfolio under the name Blox Exclusive. In December, Blox secured $12 million in a series A funding round, the largest in India's proptech sector. The funding was backed by existing investors from Silicon Valley, new strategic investors, and notable angels, including Kunal Shah, founder of CRED. Although the proptech sector in India is still in its nascent stage, industry experts believe it has significant potential for growth and development. Despite experiencing a 48% surge in the number of proptech startups in the country following the pandemic, they still account for only 6% of the total recognised startups in India. Out of approximately 65 unicorns created in India in the past year, only a handful belong to the proptech sector. Proptech's steady growth in India over the last couple of years, propelled by the digital acceleration caused by the COVID-19 pandemic, has been instrumental in enhancing transparency and providing access to data related to transactions in a sector that has traditionally been opaque.

Next Story
Technology

We’re building robots that flow, not just move

Founded in 2021, Flo Mobility is reimagining construction automation with vision-AI robots designed for seamless movement through complex sites. In conversation with CW, Manesh Jain, Founder & CEO, discusses the company’s origin, its LiDAR-free tech stack, and expansion plans in the Middle East and US.What inspired the name Flo Mobility? Why ‘Flo’ and not ‘Flow’?When we started the company in 2021, our focus was on building autonomous navigation systems for robots. Since our work centred around robot movement, ‘mobility’ naturally became part of the name. We wanted to co..

Next Story
Real Estate

We’re committed to setting benchmarks in sustainable luxury living

From a landmark land acquisition in Boisar to ambitious launches across the Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru and Pune, Birla Estates is driving future-ready growth with a strong focus on sustainability, partnerships and premium living, firmly anchored in its LifeDesigned® philosophy. K T Jithendran, Managing Director & CEO, outlines the company’s premium, sustainable growth playbook in conversation with PRATAP PADODE, Editor-in-Chief, CW. Excerpts:Birla Estates recently acquired a 70.92-acre land parcel in Boisar, Maharashtra, for..

Next Story
Infrastructure Urban

Mumbai’s land crunch and ageing homes call for structured renewal

Founded in 2022, Etonhurst Capital Partners is a real-estate fund management platform focused on the Indian market. As the firm achieves the first close of Rs 1.8 billion for its debut Rs 5 billion fund, Bamasish Paul, Co-founder, Managing Partner & CEO, discusses its sharp focus on redevelopment-driven value creation in Mumbai’s urban core with CW. Excerpts:Etonhurst Capital has achieved a significant milestone with the first close of Rs 1.8 billion for its Rs 5 billion fund. What factors contributed to this early success and how do you plan to attract further investments to r..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?