PHOTO: (Image credit: Kriangkrai Thitimakorn via Getty Images)
“India is the fastest-growing trillion dollar economy in the world and in addition, there is a clear passion for property in the country.”
Australia’s REA Group which holds a controlling interest in REA India, formerly Elara Technologies Pty. Ltd., plans to increase its investments in India.
The total cost of taking over Elara was $50-$70 million, with $34.5 million payable out of the cash reserves of Elara.
Owen Wilson, Global CEO of REA Group told Economic Times that they plan to increase investment in India more than in Australia.
“Going forward, India will be getting a larger share of our investment in terms of percentage growth. We are increasing our investment in India more than in Australia.”
In Australia, REA owns Smartline Home Loans Pty Ltd and Mortgage Choice Pty Ltd, Australian mortgage broking franchise groups, and PropTrack Pty Ltd, a leading provider of property data services. In India, REA Group also operates established online brands such as Housing.com, Makaan.com and PropTiger.com.
REA Group, which is majority-owned by News Corps, has benefited from a robust Australian residential property market.
Wilson observed that India is the fastest-growing trillion dollar economy in the world and in addition, there is a clear passion for property in the country.
Owen Wilson says that they plan to set up a tech back office for REA Australia in India.
“Previous year, India accounted for less than 5% of our revenue but this year we expect it to be between 5-10%. Going forward, it will only increase.”
The group also plans to add mortgage business, list commercial properties and expand to tier 2 cities in coming years. Wilson notes:
“We believe India probably makes more sense for us. And so we’re going to explore creating effectively a back office here in India for REA Australia to help with their tech development.”
REA’s current market cap is AUD17 billion and the group is expected to close this financial year with revenue in excess of AUD1 billion.
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