Aurum has revealed that it acquired the start-up for about Rs 90 crore, which is a steep cut from its 2019 valuation of Rs 1,800 crore.
Ratan Tata-backed PropTech startup NestAway Technologies has been sold to listed firm Aurum PropTech Ltd with a 95 per cent in the former’s pre-Covid valuation. According to an exchange filing, Aurum has revealed that it acquired the start-up for about Rs 90 crore which is a steep cut from its 2019 valuation that is Rs 1,800 crore. The filing also mentioned that Aurum will also add Rs 30 crore to stabilise NestAway Technologies.
Read More: HDFC Bank Introduces Millennia Credit Card: Know What It Offers
Aurum PropTech was bought by HelloWorld in June, last year, which is a co-living space operator from NestAway.
“After successfully scaling up HelloWorld’s operations within a year, Aurum PropTech has strategically acquired NestAway. The founders of HelloWorld, Jitendra Jagadev and Ismail Khan, who were originally part of the founding team at NestAway, will now lead NestAway post-acquisition,” it said.
This, in simple terms, means that the founders of NestAway, Deepak Dhar, Smruti Parida and Amarendra Sahu will all be leaving their acquired entity. NestAway witnessed a decline during the COVID-19 pandemic as lockdowns and migration meant that their customers left their rented houses to move back to their hometowns as remote work became prevalent.
Before the pandemic, NestAway featured 50,000 properties on its platform and achieved an annualized revenue of Rs 100 crore. However, the number of properties has now decreased to 18,000 and the annual revenue is Rs 30 crore.
NestAway Technologies was founded in 2015 and raised around Rs 900 crore from Marquee investors, Tiger Global and UC-RNT Fund which is a joint venture between Tata Sons Chairman Ratan Tata’s RNT Associates and the University of California. The company also has Flipkart, Goldman Sachs and Yuri Milner as its investors.
Read More: RBI MPC 3-Day Meeting To Start Tuesday; Repo Rate Expected To Remain Unchanged At 6.5%
Currently, the Aurum PropTech’s shares surged as much as 8.6 per cent to Rs 128 a piece on the announcement which compares with 0.46 per gains in the S&P BSE Sensex.
