Shenzhen-based online property platform Fangdd filed for an initial public offering (IPO) in the United States on Tuesday. The company expects to raise up to USD 150 million, according to a filing with the US Securities and Exchange Commission.
Fangdd claimed in its IPO prospectus to be China’s largest software as a service (SaaS) powered online real estate platform by the number of agents registered, citing consultant Frost & Sullivan. The platform hosted over 911,000 agents employed by various brokers by the end of 2018, with a penetration rate of over 45% in the country’s property broking industry.
The company was set up in 2011 and currently features a database with information on 131 million properties in China. It made RMB 2.3 billion (USD 322 million) in total revenues and RMB 104 million in net income in 2018. Fangdd earns the largest portion of its revenue from collecting commission fees from real estate sellers and buyers.
Fangdd is following the steps of other proptech companies that are recently seeking financing to support their expansion in China’s fragmented real estate trading market. Q&K, an online platform hosting long-term apartments for rental, also filed for a US IPO on Monday.
Another online property platform, Beike, raised USD 800 million from Tencent in its Series D round funding in March.