IN order to enhance its position in the country, Asia and the Latin American region, Lamudi has invested €16 million ($18 million) to capitalize on the booming property market.
“This new round of funding will definitely further boost Lamudi Philippines’s already impressive performance,” said Managing Director of Lamudi Philippines’s Jacqueline van den Ende in a recent interview with the BusinessMirror.
Ende said the huge investment indicates a great confidence in Lamudi’s business model and recognizes the potential that exists for online property search in emerging countries. “We will use the investment to improve our product on both desktop and mobile, while further consolidating our leading position across Asia and Latin America.”
Lamudi expects that there will be a shift among consumers in searching for properties in the online platform. With the price of smartphones getting more affordable to the consumers, Ende said more and more people would have access to the Internet. “We want to revolutionize the search for properties,” Ende said.
To make the online search more convenient, Ende said Lamudi will ensure the pictures of the properties listed will have high-quality pictures and complete information. Further, Ende said the portal will also have a mortgaged calculator which will be synchronized with the listings.
“Developers can also reduce their operating cost. They can eliminate the distribution of flyers and reduce marketing expenses. They can also select their target market,” she said,
Ende said the country’s real-estate sector still offers a big potential despite the easing of condominium sales in 2014. She added real estate in the Philippines remains attractive to investors because it can cater to work and leisure.
Three investors have backed the business: Asia Pacific Internet Group, which is a joint venture of German technology colossus Rocket Internet and Ooredoo; Holtzbrinck Ventures, the investment arm of the German publishing group; and current investor Tengelmann Ventures, a division of international multisector retailer Tengelmann Group.
“Since Lamudi’s foundation, our goal has been to build the biggest real-estate platform in the emerging markets. In less than two years, we have created a comprehensive online database for house-hunters that stretches from the Philippines to Peru,” said Kian Moini, Lamudi global cofounder, in a press statement.
Despite the slight dip in residential condo sales slightly in 2014, Lamudi said the Philippines’s real-estate sector will continue to remain rosy on the back of strong economic growth, buoyant business-process outsourcing industry, and the resurgence of the manufacturing sector. Observers are very positive on the industry’s outlook, especially with the transformation of areas outside Metro Manila and the reemergence of commercial and industrial real estate.
Lamudi has expanded tremendously since it was launched in the Philippines last year. It has already established two offices outside Metro Manila (Cebu and Davao), with plans for expansion soon. There are 500,000 visitors of the web site every month, while its listings grew to almost 90,000 in less than a year.