We’ve written a lot on the PropertyGuru story, and last year it has also raised US$47 million last year. Our very own Willis Wee, takes to the stage to interview Steve Melhuish, CEO and co-founder of PropertyGuru on its story, and its route to IPO.
#10:23: We have Steve Melhuish, CEO and co-founder of PropertyGuru on stage.
#10:25: Steve: I am originally from UK and arrived in Singapore in 2005. He was involved in a couple of startups prior. There was a void in property portals in Singapore, and he saw the opportunity in that.
#10:27: Steve: Back then, the competitors in the property site market. Most were listed on the newspapers, and Singapore Press Holding related sites such as ST701.com and MediaCorp’s Mocca.com. We had three competitors into the first few months of operation, and the other co-founders and I didn’t take salary for the first three years.
#10:28: Steve: The reason why we were successful was because we were very focused.
#10:30: Steve: The biggest challenge was that 99.9 percent of most estate agents were on newspaper. They spoke of a different language compared to Steve, and Steve was speaking in a foreign accent, making communication difficult. Also, Steve was introducing a new concept of the Internet, while the current existing solution was the traditional media and agents have been using it for a long time.
#10:31: Steve: Today, we have 24,000 agents on PropertyGuru site.
#10:33: Steve: PropertyGuru Group was profitable 2009 – 2010. 2011 to 2012 was not. Singapore was very profitable. In 2011 we went from Singapore, Malaysia, Thailand, and Indonesia. We have been taking the money from Singapore, 70 percent of the revenue, to invest in other markets.
#10:34: Steve: The organization in 2010 was very much focused on Singapore – from marketing to editorial. In 2011, we almost stretched the company and our people to breaking point. We stretched people to the max, and we were too ambitious. That was one mistake we made.
#10:36: Willis: How would you do differently then, since you’re running against time for the acquisitions?
#10:37: Steve: You can still buy the companies, but not completely change the platform. I will look at a step-by-step approach, rather than expanding into multiple markets immediately.
#10:37: Steve: We have raised S$22 million, and last year we raised S$60 million last year. One thirds was cashed out to shareholders.
#10:42: Steve: We still have substantial amount of money in the bank. We continue to hire. We have around 300 people across 4 countries. We will still be hiring 60 – 70 people this year.
#10:43: Second is emphasis on products. We will be focusing on mobile. Property and the idea location-based gels very nicely. Countries like Indonesia, we see traffic picking up very nicely, but monetization was slow.
#10:44: Steve: One strength was that we made sure that we did well in one market e.g. Singapore. And using that model to expand to other markets, since we already have a strong foundation in one. We’re starting to see other countries becoming profitable. We’re looking to Hong Kong, Vietnam, and Philippines as next expansion targets.
#10:48: Steve: We’re looking to IPO in the next eighteen months. It sounds exciting, but it can also mean more paperwork involved.
#10:50: Steve: We don’t see many Singaporean tech companies listed in the stock exchange.
#10:51: Willis: What do you think of the current batch of entrepreneurs in Singapore?
#10:52: Steve: Back then when I first started, I met fresh graduates who were really passionate about building products with little investments going on. Now, the entire scene has fundamentally changed. We have now locals and international entrepreneurs. Now we have also government backed investments as well as international heavyweights entering the scene.
#10:53: Steve: Now the whole online space is also growing. Most of bigger tech companies have their headquarters here, and more M&As happening in the space. The platform and infrastructure are in place. I have also recently invested in RedMart.com last week.
#10:54: Steve: I have been very impressed, the whole market has changed.
#10:55: Willis: Do you have any advice for entrepreneurs out there?
#10:56: Steve: I have an enormous admiration for people who have the drive to do things they believe in. The environment is favorable now, which makes it much easier to embark and explore entrepreneurship. People in corporate careers have been saying to entrepreneurs that they wish they could be doing things they are passionate about. Just do it.
#10:57: Steve: Even if the market is small, just go for it.
This is a part of our coverage of Startup Asia Singapore 2013, our event running on April 4 and 5. For all our newest Startup Arena pitches, see here. You can follow along on Twitter at @startupasia, and on our Facebook page.
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