Proptech is a fast-growing industry in Vietnam thanks to the country’s predominantly young and tech-savvy populace. Proptech startups in Vietnam have been changing the tides in the real estate market by adopting new business models to suit the needs of the new generation of customers. The country currently has a homeownership rate of 90%, but the younger generation has trouble joining this statistic. As such, they are taking advantage of the recent Vietnam proptech trends to become homeowners.
Most of the Vietnamese proptech startups focus on the office and residential housing markets. The use of technology has birthed many startups that are introducing leasing, project management, and sales consulting in a bid to bridge the housing gap. A considerable amount of Vietnamese buyers subscribe to smart city models; therefore, proptech startups have enormous growth potential.
Vietnam is the regional leader in digital progress
We take a look at five emerging proptech startups in Vietnam.
Launched in 2018, Vietnamese proptech startup Citics looks to develop an intuitive real estate data platform by digitalising and unifying numerous data sources to improve real estate dealings. The platform will allow users to value their properties correctly as well as lease and sell properties. In March 2021, Citics announced that it had secured $1 million USD in a pre-series A funding round.
Foreign and local investors, including Vietnamese company Nextrans, South Korean company The Ventures and Singapore-based company Vulpes Investment Management (a VC investor in PropertyGuru) raised the capital investment. Citics plans to use these funds to develop its DaaS and SaaS products and expand its business operations across Vietnam.
The company was established in 2016 and collaborates with real estate agents to help buyers find suitable homes for living and investment. Rever also works with real estate developers in different parts of Vietnam, including KhangDien and Keppel Land. Rever users can also visit the company’s experience centres to meet with agents responsible for handling enquiries and requests on the platform.
In September 2019, the company raised $2.3 million USD to expand its business operations. This funding round was led by GEC-KIP Technology and Innovation Fund (GEC-KIP Fund), a venture fund co-managed by Seoul-based private equity firm Korea Investment Partners, and Singapore-based fund management company, Golden Equator Capital.
Rever used the funding to widen its presence in the Vietnamese real estate market. The company also took its services beyond Ho Chi Minh City to Hanoi and coastal areas.
Vietnamese proptech startup, Propzy was founded in 2016 to help customers through every stage of a property transaction. The company offers an online marketplace for listings, physical sales centres, financial services such as mortgage lending, and software for tenants and property managers. Propzy’s software aids users in valuing their properties automatically using big data. It also helps customers to assess homes, displays comparable properties, and recommends property prices.
In June 2020, Propzy secured $25 million USD from Series-A funding led by SoftBank Ventures Asia, the venture capital subsidiary of SoftBank Group and Gaw Capital. Other firms such as RHL Ventures, Next Billion Ventures, Breeze Ventures Management, RSquare, Insignia Venture Partners, and FEBE Ventures also participated in this funding round.
Propzy plans to use the funds to expand its product line and develop a balance sheet for proposed direct mortgage financing services. The company also plans to expand its operation beyond Ho Chi Minh City into Hanoi for the remainder of 2021.
This startup launched in 2019 with the aim of digitising and democratising real estate investment in Vietnam. RealStake claimed to have a property selling rate of 200% in less than 12 months of launching, with an average customer investment amount of $1,000 USD. In July 2020, the company announced that it had secured venture capital from 500 Startups Vietnam and several popular angel investors.
The company looks to channel the funds into financial literacy and digital customer engagement to serve middle-class individuals searching for ways to secure and increase wealth.
With the limited funding options and rising property prices in Vietnamese cities, homeownership may be far-fetched for many individuals, especially millennials. Homebase aims to eliminate this challenge by providing an alternative to traditional funding. The company partners with its customers to purchase properties. Customers have the option of full acquisition or selling to collect their share of the profits.
In December 2020, Homebase raised funds in a seven-figure funding round. Funding for this round came from Silicon Valley-based investment company Class 5 Global, Vietnam-based VinaCapital Ventures, 1982 Ventures, Antler, Pegasus Tech Ventures, Darius Cheung, and Troy Steckenrider III. Furthermore, Homebase became the first Vietnamese startup to be accepted into Y Combinator.
The future appears to be bright for the aforementioned proptech startups in Vietnam. Their innovative ideas have enabled them to adapt to the evolving Vietnam proptech trends, allowing them to stay ahead in the industry. These startups have the potential to become industry leaders if they sustain their current momentum.