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PropertyFox co-founder Crispin Inglis (pictured, right) would not disclose financial figures behind the deal but did reveal to Ventureburn in a phone call that the money will drive expansion and strengthen its presence in South Africa through further tech development and marketing.
Inglis said the deal has been in the making for a year after the startup approached SA Home Loans.
The deal will see two members from SA Home Loans sit on PropertyFox’s board. The founders will still retain a controlling stake in the company.
Inglis added that he and co-founder Ashley James (pictured, left) realised they needed to seek investment to grow after seeing a demand for a different approach to real estate in South Africa.
“It’s something we had to discuss, looking for a small investor or looking for a partner. We realised in order to get the best chance of success, we’d need a partner rather than an investor,” he said.
Launched in last year in April 2016, PropertyFox claims to have saved consumers R10-million in fee
Inglis said they approached SA Home Loans because “they had walked the road already” and had the resources and experience that would help PropertyFox grow.
“We showed them what we had done and what we were trying to achieve,” he said.
Inglis believes SA Home Loans chose to partner with his startup because the companies share similar origins and both want to challenge the status quo.
Commenting on the deal in an earlier statement, SA Home Loans CEO Kevin Penwarden described the deal as “an excellent fit for both companies”.
“We had been looking for an opportunity to enter the property industry as it is vertically aligned with our industry and PropertyFox resonated strongly with us. The business model is compelling and has been proven to be successful elsewhere in the world,” said Penwarden.
Launched in last year in April 2016, PropertyFox claims to have saved consumers R10-million in fees. The startup generates revenue by taking a 1.5% commission per transaction. PropertyFox also charges a R2 500 registration fee for users.
Featured image (from left to right): PropertyFox founders Ashley James and Crispin Inglis