Dear Investor On behalf of the Board of Directors of PropertyGuru, it is my pleasure to invite you to become a holder of CDIs in PropertyGuru Limited. Each CDI represents a Share in PropertyGuru as described in this Prospectus. PropertyGuru is based in Singapore and we operate digital property classifieds marketplaces in five countries across South East Asia – Singapore, Vietnam, Malaysia, Thailand and Indonesia (collectively our “Core Markets”).
Our customers are primarily Agents and Developers advertising residential and commercial properties for sale or to rent in our Core Markets on our digital platforms. We are the #1 online real estate marketplace in terms of market share1 in each of our Core Markets, with the exception of Malaysia where we are the #2 player. We have 60% market share across our Core Markets, which is significantly more share than that of our nearest competitor.
The market opportunity for online property advertising in our Core Markets is underpinned by a number of key macroeconomic and other trends. These include strong population growth, urbanisation, increasing penetration of the internet within the population, increased access to mobile phones, and in particular smartphone penetration as well as rising wealth levels which has seen the expansion of the middle classes – a key driver of housing demand. Online property advertising on our digital platforms offers Agents and Developers more cost-effective solutions than traditional print channels and allows them to target a broader audience. We expect these trends to shift property advertising away from print and other offline channels in our Core Markets to online, as property seekers increasingly use digital channels to conduct their property searches. Our leadership across our Core Markets is a product of our established local relationships with Agents and Developers, as well as our significant investment in the PropertyGuru technology platform, and our brand. We have strategically invested to develop proprietary scalable technology platforms with market leading features and functionality, including using artificial intelligence and augmented reality, which has enabled us to develop a differentiated digital offering. We believe that our focus on research and development and technology investment will continue to drive strong market position and growth over the longer term by delivering increasing value to our customers.
This investment and innovation are made possible by our experienced management team and our culture of innovation. The team is headed by our Chief Executive Officer, Hari V Krishnan, who has two decades of senior executive experience in leading technology firms in Asia and the United States. The purpose of this Offer is to provide funding and financial flexibility to support our future growth strategy, to pay out existing convertible note holders, to enable existing shareholders to partially realise their investment and to broaden our shareholder base. This Prospectus contains detailed information about the Offer and the financial and operating performance and outlook for PropertyGuru. As with all companies, PropertyGuru is subject to a range of company specific and general risks. The key risks associated with investing in PropertyGuru are detailed in Section 5. These include our ability to attract new, and retain existing, customers to our digital platforms, competition and the risk of digital disruption and our ability to hire and retain key qualified personnel as well as risks associated with operating in emerging market countries, including regulatory risks and other actions of governments. I encourage you to read this document carefully in its entirety before making your investment decision. On behalf of my fellow Directors, I look forward to welcoming you as a shareholder of PropertyGuru.
Olivier Lim Chairman,