Malaysian investment firm Frontier Digital Ventures (FDV) has left Vietnamese online real estate company Propzy in anticipation of losses, in its new round according to DealStreet Asia. This would dilute FDV’s ownership to less than 10 per cent.
The ASX listed FDV has pulled out of its 20 per cent stake for a cash consideration of USD$4.7 million, out of which 300 per cent of sale was generated for the Malaysian firm.
The Vietnamese proptech company, Propzy told DealStreet Asia that the startup was preparing to raise US$25 million in a Series B round. The firm has also experienced strong revenue growth of 417 per cent last year becoming one of FDV’s highest growth portfolio company.
Currently, the startup has raised a total of US$12 million from investors including Stonebridge Capital, Insignia Ventures, GS Shop, TNB Aura and Next Billion Ventures, in addition to FDV.
It is currently preparing to raise an additional US$25 million in a Series B round.
Also Read: Vietnam-based proptech startup Propzy targets a US$25M Series B fundraising
“Despite Propzy’s strong revenue growth, we believe the sale of our shareholding represented an attractive opportunity to fast-track FDV’s pathway to achieving portfolio-wide profitability in 2020,” said founder and CEO of FDV Shaun Di Gregorio.
“Consistent with FDV’s stated strategy, we continue to assess a range of opportunities to optimise our portfolio mix and increase shareholder value.” he continued expressing FDV’s plan of using the fresh capital to increase ownership of better-performing companies within the portfolio
In total, FDV has announced an annual growth in portfolio revenue of “6.2x on a company economic share basis since its IPO in 2016,” to DealStreet Asia.
FDV’s primary focus is on the property and automotive marketplaces in emerging markets, with existing investments, in 11 companies across 13 markets.
In 2018, the firm managed to score US$8 million through an institutional entitlement offer.
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Image Credit: Tran Vu Hao
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