Propic, a rapidly growing proptech company, is set to raise an additional $10 million following a recent investment from Australian Community Media (ACM), its primary backer. The funds will be used to purchase rival firm Property Realm, though financial details of the acquisition were not disclosed. ACM, owned by Antony Catalano and Alex Waislitz, had previously invested $6 million in Propic as part of a $6.3 million funding round last year. According to Mr Catalano, the acquisition of Property Realm is a strategic move that will bring new talent to Propic, accelerate growth, and expand the company’s market footprint. Both companies have developed artificial intelligence technology capable of managing up to 80% of standard email or text queries made to real estate agents. While Propic specializes in sales, Property Realm focuses on property management. Mr Catalano explained that the acquisition makes sense, as the company had ambitions to expand into property management, and the product and technology of Property Realm was of high quality, making it a practical way to move forward.
Propic’s founder and CEO, Jeffery Gray, has announced the acquisition of Property Realm, a move that aims to diversify Propic’s product offerings and accelerate the integration of artificial intelligence (AI) into property management. Gray notes that the acquisition was logical because Property Realm brings over 50 new clients, technical expertise, and a technology development team in India, which will increase the total staff numbers of Propic to about 45. With this acquisition, Propic hopes to raise between $5 million to $10 million from investors by the end of July. Gray believes that Property Realm’s clever AI technology will help automate significant aspects of asset management, a goal that was already in Propic’s plans. The acquisition will also bring more products, and a stronger value proposition, and is expected to have a material impact on forward growth rates. Propic’s annual recurring revenue has doubled since last May and is now running at between $3 million to $4 million, with expectations of reaching $6 million to $10 million by June next year. The company is consistently growing over 100% per annum, thanks to the benefits of SAAS businesses. Propic’s technology is already used across 84 real estate agency brands and a diverse customer base of project marketers and developers. The capital raise is expected to formally start in June, and the funds will be used to further expand the business.
