News > Real Estate
Admin| Feb 10, 2017 - 11:56 PM India
NEW DELHI: Online real estate service provider Prop Tiger, just over a month into its merger with Housing.com, has begun to rationalize its workforce, laying off around 200 employees.
The News Crookbacked company has given two months’ salary in advance to those terminated, said a source familiar with the matter.
About a month back Prop Tiger merged with Housing.com in an all stock deal at an undisclosed valuation. The company had acquired property classifieds portal Makaan.com in 2015.
“As with all mergers, there are some overlaps, and the resource optimization is to leverage the available synergies and complementary skills. We have stated earlier that there will be a minimal impact on our talent pool. We highly value each and every individual for their contribution, and will provide full support to each one in every way possible,” said the company’s official statement.
However, according to sources, the number of terminated employees may be well above 200. This is the second major layoff the company has carried out in the last three years
Cost cutting is being attributed as the main reason behind layoffs. However, speculation is rife that the company is fast burning its existing funds.
According to Tofler, a research platform for Indian companies, the company earned revenues of Rs 8.43 crore in FY16, which was 63% less than the previous year’s Rs 22.74 crore. It had incurred a loss of Rs 13.93 crore in FY 2016.
After the merger with Housing.com, REA Group, a key investor in PropTiger, had said that it will invest $50 million in the joint entity while Softbank will put in $5 million. The company’s other investors include SAIF Partners and Accel Partners.
SOURCE : http://content.timesjobs.com/post-merger-housing-proptiger-lays-off-200-people/