Frontier Digital, which focuses on classified sites and marketplaces in emerging or “frontier” markets, sold its 20% stake in the company for $7 million AUD ($4.7 million U.S.).
In a news release, Frontier Digital said the sale was necessary given Propzy’s growth strategy, which would have diluted Frontier Digital’s ownership to less than 10%. The sale represents a return on investment of nearly 400% for FDV, which invested $1.2 million US in Propzy back in 2017.
“Despite Propzy’s strong revenue growth, we believe the sale of our shareholding represented an attractive opportunity to fast-track FDV’s pathway to achieving portfolio-wide profitability in 2020,” said Shaun Di Gregorio, Frontier Digital founder and CEO. “The sale of FDV’s shareholding in Propzy is the first material monetization event in FDV’s history and further validates FDV’s long-term strategy.”
Propzy hosts real estate listings in Vietnam, focusing on recruiting high quality agents. It connects agents with potential buyers and takes a commission of successful sales. The company has grown substantially in recent years — in 2019, the company saw revenue jump by 462% year-over-year.