 "Softbank invests Rs 100 cr in Housing")
Within days of Softbank Founder and Chief Executive Officer (CEO) Masayoshi Son telling a room full of start-ups he would accelerate investment in India, real estate portal Housing.com has raised funds from the Japanese investor.
Housing on Thursday said it received Rs 100 crore as fresh capital from Softbank, which has been the biggest investor in the Mumbai-based company, and is expected to increase its hold further. Softbank holds more than 21 per cent in Housing.
A statement released by the start-up said it would be using the funds to "drive its new strategy and growth plans". Housing has so far received more than $100 million in funds. "Softbank is one of the world's largest and most successful investors. Their continued support, as both investors and advisors, is invaluable to us and signifies their long-term commitment. We are now well-capitalised to aggressively execute on our focused strategy and growth plans," said Housing CEO Jason Kothari. Housing's cash burn had crippled the firm in the first half of 2015 and played a part in the restructuring. Son, however, said at the start-up summit that cash burn in some businesses was a necessary evil.
"We need a constant balance. You cannot burn money (in a) stupid way. As long as you invest in (a) smart way, it is okay. Businesses need five to 10 years to make profit. It is okay not to make money, but what is important is customer acquisition, business model and customer satisfaction. The overall business should be created to get enough scale, active user base and you will make profits," Son said.
Softbank's portfolio now has stalwarts such as US telecom company Sprint, Chinese e-commerce giant Alibaba and Delhi-based Snapdeal and Paytm, apart from Housing and Ola.
Housing on Thursday said it received Rs 100 crore as fresh capital from Softbank, which has been the biggest investor in the Mumbai-based company, and is expected to increase its hold further. Softbank holds more than 21 per cent in Housing.
A statement released by the start-up said it would be using the funds to "drive its new strategy and growth plans". Housing has so far received more than $100 million in funds. "Softbank is one of the world's largest and most successful investors. Their continued support, as both investors and advisors, is invaluable to us and signifies their long-term commitment. We are now well-capitalised to aggressively execute on our focused strategy and growth plans," said Housing CEO Jason Kothari. Housing's cash burn had crippled the firm in the first half of 2015 and played a part in the restructuring. Son, however, said at the start-up summit that cash burn in some businesses was a necessary evil.
"We need a constant balance. You cannot burn money (in a) stupid way. As long as you invest in (a) smart way, it is okay. Businesses need five to 10 years to make profit. It is okay not to make money, but what is important is customer acquisition, business model and customer satisfaction. The overall business should be created to get enough scale, active user base and you will make profits," Son said.
Softbank's portfolio now has stalwarts such as US telecom company Sprint, Chinese e-commerce giant Alibaba and Delhi-based Snapdeal and Paytm, apart from Housing and Ola.