Proptech startup Propzy suddenly ceases operation
In May 2022, real estate technology platform Propzy announced the closure of Propzy Vietnam Service Co., Ltd. The platform was established in 2015 by Mr. John Le, a Vietnamese American.
Propzy was a startup operating in proptech and participating in many stages in the real estate transaction process, such as brokerage for buyers and sellers, providing financial solutions for customers buying houses, and managing real estate exploitation and apartment operation.
According to Crunchbase, as of June 2020, the company had raised 33 million USD. Most recently, Propzy successfully mobilized 25 million USD in Series A funding from a group of investors including Gaw Capital and SoftBank Ventures Asia of SoftBank Group, Next Billion Venture, RHL Venture, Breeze, FEBE Venture, RSapes and Insignia.
Propzy's ambition was to diversify its real estate products and launch direct mortgage lending. The startup aimed to penetrate Southeast Asian countries such as Thailand, Malaysia, and the Philippines.
By 2017, this company had increased to 120 employees and moved to a new office. The number of employees increased to 200 in 2018 and formed a transaction centre system. After just one year, the number of employees doubled. Its transaction centres also increased to 26.
In 2020, Propzy Vietnam had 1,200 employees, 80,000 customers, and more than 30 transaction centres.
However, its ambitions were halted due to the Covid-19 pandemic. In September 2021, the company cut 50% of its sales staff to restructure its business model, and then closed the Propzy Service Co., Ltd.
On September 13, it was reported that Mr. John Le internally announced in an email that the company would no longer operate in Vietnam from September 12. The reason was the impact of the pandemic and unstable global financial situation due to the Russia-Ukraine conflict.
VietNamNet contacted the people involved and called, texted and emailed Mr. John Le, but has yet to receive a reply. According to VietNamNet’s sources, the news about Propzy shutdown is accurate and many of its employees have their labour contracts terminated.
An expert said that the closure of Propzy will not have much impact on the Proptech market in Vietnam because there will continue to be many new platforms and there is still a lot of potential.