Propseller, a Singapore-based real estate firm that integrates a technology platform with its team of agents to expedite property sales, today announced it has secured $1.2 million in seed funding.

This funding round saw participation from Iterative, Hustle Fund, XA Network, Rapzo Capital, Stein Jakob Oeie, a co-founder of Lazada, and Ben Neve, the founder of Dot Property. Propseller also noted that the round included contributions from “three undisclosed highly strategic investors” as well as existing private investors.

Propseller’s previous funding announcement occurred in December 2018, when the company raised SGD $1 million (approximately $737,000) in seed capital.

Established in 2018 and launching the following year, Propseller states that its technology platform streamlines the transaction process, assisting with areas such as property assessments, and lowers typical commission fees from 2% to 1%. This reduction is possible because the company’s agents, leveraging the platform, can complete a greater volume of transactions in a shorter timeframe.

The company reports that it is presently managing properties with a combined value of around SGD $75 million annually.

Despite the economic challenges presented by COVID-19, the Singaporean real estate market is projected to experience a relatively swift recovery, particularly within the residential segment, driven by demand for new condominiums and ongoing foreign investment. According to Adrien Jorge, Propseller’s founder and CEO, the company’s revenue decreased by 80% in the second quarter compared to the previous quarter, but is currently showing signs of recovery.

Throughout the pandemic, technology-driven services, including online dashboards providing market data and virtual property tours, have enabled Propseller’s agents to continue serving their clients. Jorge explained that Propseller did not need to rapidly implement digital tools for virtual viewings, as its existing platform was already equipped to accommodate the restrictions on in-person viewings during Singapore’s partial lockdowns.

PropertyGuru, another Singaporean startup focused on real estate, recently completed a funding round. Last month, the property listing platform announced a $220 million investment from KKR and TPG to facilitate expansion into new Southeast Asian markets. PropertyGuru’s primary competitor is 99.co, while companies like Propseller and Ohmyhome, which also combine agent services with technology platforms, offer alternative options within the Singaporean real estate landscape.

Jorge clarified that Propseller distinguishes itself from Ohmyhome, which primarily operates on a FSBO (for sale by owner) model, offering agent services as a secondary, lower-cost option. Propseller, conversely, concentrates on functioning as a technology-enhanced real estate agency. He added that PropertyGuru and 99.co concentrate on classified listings and do not directly manage transactions, whereas Propseller’s approach is focused on “disrupting traditional agents, not classifieds.”

In a statement regarding their investment in Propseller, Brian Ma, a partner at Iterative (and founder of Divvy Homes, a San Francisco-based property technology company), commented, “Modern estate agencies are rapidly gaining market share globally. In a market like Singapore, characterized by high property values and a demand for superior service, we anticipate that digitalization will be unavoidable. We are enthusiastic about Propseller’s potential to spearhead this transformation.”

Edit: Updated with comments from Adrien Jorge.