Vietnam proptech update: Propzy employs mass job cuts, Houze ups expansion fund

SoftBank-backed proptech startup Propzy has reduced its headcount by half, while Vietnam-based competitor Houze has raised $2 million in the latest funding round to bolster its leadership and core product.

Singapore-headquartered Propzy has dissolved its Vietnamese subsidiary in Ho Chi Minh City in a business shake-up, according to a company report sent to the city’s Department of Planning and Investment late this May.

Founded in 2016, Propzy raised a $25 million Series A funding led by SoftBank Ventures Asia, the early-stage venture arm of SoftBank Group, and Gaw Capital in 2020. Other investors included Next Billion Ventures, RHL Ventures, Breeze, FEBE Ventures, RSquare, and Insignia.

Propzy said at the time the proceeds would be used to grow its product line and provide a balance sheet for its expansion into direct mortgage financing.

Unlike the situation at Propzy, proptech startup Houze has raised $2 million in a funding led by DKRA Group, a major real estate service brand in Vietnam.

While the new capital will be used to further improve Houze’s leadership and core product, its strategic partnership with DKRA is expected to scale up inventories for both.

Houze is in the process of closing an additional fund with venture capital to launch new products such as Houze Portal, Houze Super App and Houze Finance. "Technology will disrupt geographical limitations, human capital, close the gap between agents and home buyers, and professionalize the brokerage community," said Houze founder Pham Lam.

In a report submitted to the Prime Minister this May on the domestic realty market in 2021 and the first quarter of this year, the Ministry of Construction said 80% of real estate trading floors had resumed operations post pandemic, along with new ones established.

There were more than 1,600 real estate trading floors nationwide in 2020. Due to the pandemic fallout, only 20% maintained operations.

However, by the end of last year, 40% of property trading floors had reopened. The ministry reckoned the market had gradually picked up, according to the report.