Proptech On The Rise As Residential And Commercial Real Estate Investors Look To Battle Inflationary Pressures And Rising Interest Rates, Reveals Hampleton Partners
London, UK – 9 November 2022. The Proptech M&A Market Report from Hampleton Partners, the international M&A and corporate finance advisory firm for technology companies, reveals that the first half of 2022 saw 55 property technology (Proptech) deals, 57 per cent up on 1H2020 and 12 per cent up on 1H2021 numbers.
The previous half-year deal count high was 2H 2019, pre-Covid pandemic, when 63 Proptech deals were completed.
Axel Brill, managing director, Hampleton Partners, said: “The Proptech market doesn’t appear to be slowing down, despite recent market volatility, as capital continues to flow in and the market remains thirsty for technological innovation, especially where it drives operational efficiency.”
Enterprise Real Estate Software M&A
The largest of the Proptech segments, capturing 25 per cent of all M&A activity over the past five years, Enterprise Real Estate Software such as document management and e-signing has become a vital replacement to traditional manual documentation delivery to counter travel restrictions, social distancing and remote work, experienced most sharply throughout 2020.
Real Estate Fintech
Deal flow in the real estate Fintech segment proved strong in 1H 2022, despite challenging macroeconomic conditions. Deals increased by 167 per cent between 1H 2021 and 1H 2022. Like most other subsectors, deal volume declined in 1H 2020 as a result of the COVID 19 pandemic.
Two examples of deals in the real estate Fintech segment are:
US-based public company Porch Group’s acquisition of Floify Inc. in a deal valuing it at $86.5 million, late 2021. Floify provides the real estate and finance sectors with automated mortgage origination and management SaaS as well as document management capabilities.
In May 2022, Altus Group’s $28.8 million acquisition of Canada-based Rethink Solutions. Rethink Solutions provides an AI-powered property tax management software with open APIs for firms operating in the North American real estate market. Additional features include tax and expense management, value assessments, budgeting & forecasting, and tax saving tracking software.
Property Management SaaS
Deal volume in the Property Management SaaS hit a record high in 2H2021 recording an enormous 250 per cent jump over the previous quarter and a 75 per cent rise over 2H2020.
Aareon’s acquisition of Momentum Software Group in June 2022 is a good example of an acquisition in this space, enabling Aareon to corner the Nordic market.
Momentum, provides property management and energy monitoring software, as well as related APIs for property owners. The software helps firms to manage units, develop housing, monitor energy data, and analyse consumption behaviour.
Top acquirers of Proptech companies – past 30 months
The top two acquirers of Proptech companies over the past 30 months and their three most recent acquisitions are:
MRI: 12 acquisitions including Apartment Data Services; Property Suite NZ and Angus Systems
CoStarGroup: 6 acquisitions including Business IMO; ComReal; Homes.com
The future of Proptech technology M&A
Axel Brill, managing director, Hampleton Partners, continued: ”Companies need to flex their M&A muscles and acquire competitive capabilities before interest rates rise even further, whilst also disposing of non-core assets to cut unnecessary costs.
“We expect larger technology companies, both public and private, will continue to actively engage in M&A to accelerate time to market and fill in product gaps. This is vital for tech giants as their competition intensifies during market downturns. As for Proptech valuations, the market will limit high valuations to businesses that have simultaneously demonstrated growth and profitability.”
Hampleton Partners’ Proptech M&A Market Report Content
Hampleton’s Proptech M&A Market Report 2H2022 is a snapshot of key transactions, valuations and trends across the sector over the past five years, with a focus on Enterprise Real Estate Software, Transactional Real Estate Platforms, Real Estate & Construction IT Services, Property Management SaaS, Real Estate Data & Analytics, Real Estate Fintech and more.
Download the full Hampleton Partners’ Property Technology M&A Market Report:
Rising anxiety amongst homebuyers as banks fail to meet customer call needs
London, 7 November 2022 – Infinity, the global call intelligence and speech analytics platform, can today reveal that it has seen a significant spike in calls to financial service institutions using its platform in relation to UK interest rates soaring.
During the week of 25th September, following Kwasi Kwarteng’s mini budget, Infinity’s data shows there was a 20% increase in calls from anxious customers looking for vital information about their finances.
“The increase in calls around interest rates, and consequently mortgage payments, skyrocketing emphasises customers’ financial worries. Bank of England has now raised interest rates to 3% and expects the UK to fall into its longest recession. In response, banks must prepare their customer service teams to provide an outstanding customer experience, supporting those with.” Warren Newbert, CEO, Infinity said.
In order to best service the increasing number of calls, Infinity recommends that financial services institutions take the following steps:
Focus on empathy: brands should consider investing in tools that can give them real-time insights into how call agents are handling calls. In doing so, organisations pinpoint techniques such as tone of voice that are needed to deal with customers worried about making repayments. Brands can further train staff, based on conversation analytics, to ensure customer queries are met with positive and helpful responses.
Improve call handling times: calls signify one of the few direct points of contact customers have with their bank. After the mini budget, call minutes went up by 21%, proving that the period ahead is critical for financial institutions. By using call intelligence to better train staff and improve communications across other channels, organisations are able to strike the perfect balance between addressing customer queries in the contact centre efficiently and providing outstanding customer service.
“The Bank of England has said a recession may last until mid-2024. The next few days will be the most important time for banks to provide an exemplary customer call experience. However, the next couple of years will be an ongoing scramble to maintain or establish their reputation as a brand,” Newbert added.
Proptech and Property News in association with Estate Agent Networking.
Andrew Stanton is the founder and CEO of Proptech-PR, a consultancy for Founders of Proptechs looking to grow and exit, using his influence from decades of industry experience. Separately he is a consultant to some of the biggest names in global real estate, advising on sales and acquisitions, market positioning, and operations. He is also the founder and editor of Proptech-X Proptech & Property News, where his insights, connections and detailed analysis and commentary on proptech and real estate are second to none.