Vietnamese proptech startup Propzy ceases operation

“We had raised our $25 million series A in mid-2020, which was immediately met by a prolonged pandemic compounded by global financial market instability from the Russian war in Ukraine. Our efforts to grow the business during this period resulted in absorbing significant losses that we were not able to recover from given the continual lockdowns in Vietnam. Our inability to raise funding amidst the backdrop of an uncertain global environment was the final jab of the knight in our young startup,” wrote John Le, CEO of Propzy in the announcement to his staff.

“I know this was not the outcome we had all expected but sometimes in life as in business, we don’t reach our final destination, however, it’s also important to learn and grow from the journey in and of itself. We should all be very proud of the changes we have shaped in the Vietnam market as we leave behind a proptech eco-system more vibrant now than when we first started. Each and every one of you played a vital role on that journey,” Le added.

This move comes after Propzy announced the dissolution of Propzy Service Company Ltd. in June this year and laid off half of its employees to restructure its operating model after the pandemic.

Propzy was a startup operating in proptech and participating in many stages in the real estate transaction process, such as brokerage for buyers and sellers, providing financial solutions for customers buying houses, and managing real estate exploitation and apartment operation.

Propzy raised $25 million in 2020 in a funding round led by private equity fund Gaw Capital and Softbank Ventures Asia.

In addition, Propzy's investors were Next Billion Ventures, RHL Ventures, Breeze, FEBE Ventures, RSquare, and Insignia Ventures Partners.

Propzy's ambition was to diversify its real estate products and launch direct mortgage lending. The startup aimed to penetrate Southeast Asian countries such as Thailand, Malaysia, and the Philippines.

By 2017, this company had increased to 120 employees and moved to a new office. The number of employees increased to 200 in 2018 and formed a transaction centre system. After just one year, the number of employees doubled. Its transaction centres also increased to 26.

In 2020, Propzy Vietnam had 1,200 employees, 80,000 customers, and more than 30 transaction centres.

Propzy, a Vietnam-based proptech startup that guides consumers through the entire process of a real estate transaction, is seeking to raise $50 million in its Series B funding round.

The pan-Asian private equity firm Gaw Capital is scouring Southeast Asia, including Vietnam, in search of potential investment opportunities in the real estate technology sector.

Local and foreign investors are eyeing the potential of Vietnam’s proptech platforms, potentially paving the way for them to tap into lucrative real estate deals.