Propzy stops operating in Vietnam

, Propzy stops operating in Vietnam

About 200 employees of the real estate technology startup Propzy had to quit after September 13 because the company stopped operating even though it had previously raised 30 million USD.

Vietnamese startup proptech (real estate technology) Propzy has officially announced the closure of operations starting from Monday (September 12), according to Deal Street Asia.

“We raised a 25 million USD Series A round in mid-2020 and then faced a prolonged pandemic and uncertain global financial situation due to Russia’s conflict in Ukraine. Efforts to develop the business during this period have incurred huge losses that we cannot recover with the continued social distancing in Vietnam”, Deal Street Asia quoted an internal email sent to Propzy employees.

Failing to raise capital amid a volatile global environment is the “last knife” for the company, Propzy admits.

According to the content in the email, all salaries will be paid in full until September 13 and employees will receive severance pay. According to Tech in Asia, although the exact number of employees affected by Propzy’s closure is still unknown, the company’s LinkedIn profile shows that the startup has more than 200 employees.

This move comes just a few months after Propzy Services Co., Ltd (Propzy Services), a member unit of Propzy Vietnam announced the dissolution of the company.

Propzy also laid off 50% of its staff starting in September 2021 in the context of business model restructuring.

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Not long ago, Deal Street Asia reported that real estate portal Singapore 99 Group is looking for merger opportunities in Southeast Asia Singapore, which may include Propzy.

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Sources said that Propzy’s activities are in line with 99 Group’s overall strategy. But any acquisition requires a detailed process and due diligence. For now, it is uncertain whether 99 Group is still pursuing the deal.

Founded in 2016, Propzy’s technology covers all stages of the real estate transaction, from brick-and-mortar sales centers to online marketplaces for listings, financial products such as mortgages and, ultimately, enterprise software for property managers and tenants.

According to Tech in Asia, during its operation, Propzy has successfully raised 30 million USD in investment capital from investors such as Gaw Capital Partners and SoftBank Ventures Asia.

@ Zing News

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