I think the main consideration with respect to Proptech is how they go vs AgentBox (Reapit).
As is typical with these tech/promotor type businesses, both claim to the be the #1 in Aus/NZ. And both would have some contorted definition by which they make such a claim.
https://agentbox.com.au/ This firm clearly has some good agencies using its product. And has serious and deep-pocketed backers in Accel/KKR.
The main question for me is how does Proptech, with a mkt cap of $43m compete against this competitor?
A second concern I have is that Proptech must be getting stretched thinly, they are trying to develop a new product, expand their take across the real estate transaction landscape. It won't be easy to pull off all that they are claiming in their presentations.
I hope they go well. I'm just somewhat cautious as I think the easy days of mopping up a few businesses in a private transaction, then listing them via an IPO at a nosebleed valuation allowing one to keep raising money at inflated multiples of revenue, in order to sustain operating losses (despite whatever confected EBITDA headline number is used) are done for.
The fortunate thing at the current valuation levels is that they are undemanding should Proptech be run well.
PTG Price at posting:
28.0¢ Sentiment: None Disclosure: Held
