Propcap Technologies Limited (PropCap), a Hong Kong lending marketplace that specializes in overseas property mortgage matching platform, plans to complete the Series Pre-A round in the first half of the year.
The upcoming capital raise is scheduled to kick off by April this year. Deal size could be up to USD 2m, at a target of USD 12m pre-money valuation, PropCap has reached a price tag of USD 8.5m after securing USD 506,000 in the second tranche in October 2021.
The funding will be used for business expansion in the U.K, setting up a subsidiary and acquiring for the money lending license in Japan, expanding market entry into the Greater Bay Area (Mainland China) and Australia.
Neo Cheung, Founder and CEO said “The Japan office will be primarily set up in Tokyo. Japanese individuals hold approximately 12 Trillion USD worth of yen in cash. PropCap could provide a lucrative return in a secured mortgage investment for those cash-holding Japanese investors, while our mortgage matching platform is also driving the Asian investors to enhance their real estate exposures worldwide.”
These markets are full of potential given the founding team’s local networks, marketing intelligence and robust real estate sentiment.
The use of proceeds will also be set aside for proprietary platform upgrades on functionalities, such as digital KYC, AI matching and machine learning-driven credit scoring system.
Investor is playing a key role
Venture capitalists with a mandate in Reg-tech, Prop-tech or Financing investments are preferred, Louis Lee, Co-founder and CDO said, noting that the company hopes the new investor will play a key role to facilitate the business growth.
The company has already received strong initial interest from a handful of potential investors, including London-headquartered property technology VC firm Pi Labs and Alibaba Hong Kong Entrepreneurs Fund, noting that PropCap is selected as Top 100 for Alibaba Entrepreneurs Fund JUMPSTARTER 2022.
Business forecast
The total number of successful matching deals is expected to hit 36-42 in 2022, adding that it had completed 12 cases last year since its product launch in March 2021. PropCap is confident of achieving the forecast, as there are signs of huge interest from Hong Kong and Mainland China purchasers in overseas property markets. In March 2022, Propcap is first batch of licensed money lender in Hong Kong who is eligible to access into the Greater Bay Area Cross-boundary Data Mutual Recognition Platform. It helps to drive the Mainland China business.
Incorporated in 2019, PropCap engages in mortgage loan platform operations for matching between global lenders and global borrowers for overseas property purchases. The lenders, also known as the investor, gain a 6%-10% return per annum with less than two years tenor, while the borrowers could drawdown the loan 3 times faster than in traditional banking.
The company currently has four revenue streams, including transaction fees, annual membership fees, professional services referral fees and foreign exchange commission fees.
About Propcap Technologies Limited (PropCap)
PropCap, founded in 2019, is the first cross-border real estate secured match lending platform in Asia. In June 2021, PropCap became a member of the Cyberport Hong Kong Incubation Program and recently enrolled in Newchip Accelerator Program in Feb 2022.
The founding team, including Founder and CEO – Neo Cheung, Co-founder and CTO – Yao Ma, Co-founder and CDO Louis and Co-founder- Ian Wong.
Cheung familiars with Japan market with over 14 years career in Morgan Stanley, Tokyo, specializing in finance and real estate. Ma engaged in trading and fintech for more than 20 years and had served in various senior positions at Morgan Stanley, Credit Suisse, Barclays and BNP Paribas. Lee has more than 17 years’ experience in business development and distribution, product innovation and sales management in Convoy Global Holdings Ltd. Wong with rich experience in the hedge fund sector, joined Kerry Group, Michael Sofaer and Sfund Int’l Asset Mgmt. Ltd.
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