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Proptech firms are poised to garner investments up to USD1 billion in 2025 (doubling 2020’s tally) according to a Colliers and CII report. VR, AI, IoT and more are going to drive proptech, while the upcoming 5G rollout will boost the real estate tech market in India.
While proptech is firmly in the saddle, there could be winds of change blowing Far East.
Propzy cuts 50% staff
Per this recent report, Vietnamese proptech player Propzy has cut 50% of staff from last September and revamped its business model. Most of the folks who were handed out pink slips hailed from the sales team.
Why?
🎚 As margins dwindle, Propzy is automating its direct brokerage solutions, rendering such positions unnecessary.
🎚 Its marketplace has properties authenticated by its team. However, instead of big-ticket internal operations, it is relying fully on third-party agents to close deals.
🎚 As the strategy shifts, hiring is now being done for newer products like PropzyHome - a modern townhouse selected and redesigned by the startup.
Clearly, with the take rates generally low, many other proptech startups may stop pushing for revenues from home sales in the future.
Is this a big shift? Will proptech re-align again? Time will tell.