BusinessEx.com, an online real estate entity owned by Faridabad-based business and publishing group Franchise India, has picked up a majority stake in RE/MAX India, the Indian franchisee of US-based realty firm RE/MAX LLC, it said in a statement.
The remaining stake will stay with Sam Chopra, founder and promoter of Cybiz Realty which owns and operates the master franchisee of RE/MAX in India, it said.
The firm did not disclose financial details of the transaction.
As part of the deal, a joint entity BusinessEx Cybiz Realty will be formed which will be under the Franchise India umbrella.
The entity targets to open 1,000 franchise offices and have 5,000 agents across the country by 2020. It also plans to pump in over Rs 50 crore as growth capital and incubate realty startups.
BusinessEx Cybiz Realty will represent RE/MAX as its master franchisee in India and will take over an established network of more than 60 offices across the country in over 25 cities.
With its entrepreneurial business model, RE/MAX offers an asset-light platform to its franchisees which enables them to grow and have economies of scale.
Sam Chopra, founder and chairman, RE/MAX India, said, “This acquisition allows both the companies to pursue potential opportunities to create additional value through synergies. This relationship would cover up the increasing gaps in real estate sector.”
Gaurav Marya, founder, Franchise India and BusinessEx, said, “Our collective strengths combined with the power of brand RE/MAX, will help us build an entity which will fill the gap in the Indian real estate brokerage industry. The new regulations introduced in the real estate sector would see the kind of consolidation that this market needed and there would be a greater desire to partner with entities like RE/MAX.”
Founded in 1973, Denver-based RE/MAX—which has a network of 110,000 agents in over 100 countries across 7,000 offices—claims to have played a key role in organising the real estate market. It provides an entrepreneurial culture, offering its agents and franchisees the flexibility to operate their businesses with independence.
BusinessEx.com is a platform which brings together buyers and sellers of existing businesses at one place. It also offers advisory and transactional services.
Established in 1999, Franchise India offers franchise solutions including licensing and retailing, among others. It claims to have worked with over 1,100 brands across five continents.
Like this report? Sign up for our daily newsletter to get our top reports.