Fintech-Focused VC Leads $5 Million Pre-Series B Investment in Indonesia-based Property Technology Company Pashouses
“Owning a home is an important part of the Indonesian culture, but the current structure is incredibly complex and fragmented”
QED led a $5 million pre-Series B round in Pashouses, a fintech company that sits at the intersection of property and technology, based in Jakarta, Indonesia.
“As we saw in India, the opportunities for companies to make immediate and lasting change is tremendous,” said QED Investors Partner and Head of Asia, Sandeep Patil. “Southeast Asia boasts a vast and growing economy. Taken together, Indonesia, Thailand, the Philippines, Malaysia and Vietnam would be the seventh-largest economy and third-most populous country in the world. With a median age of 30 years, it is no wonder that smartphones are everywhere, and tech is being adopted across all walks of life.”
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Pashouses is an end-to-end transactional marketplace for buying and selling houses in Jakarta, from brokerage and renovation to staging and mortgage.
Co-founded by Indonesia-born Junghans Tasani and Bin Anindita, who studied at Harvard Business School and INSEAD respectively, Pashouses uses technology to help create a path to home ownership by helping buyers make informed decisions from how much to pay for a property to the type of financing structures available.
“Owning a home is an important part of the Indonesian culture, but the current structure is incredibly complex and fragmented,” said Patil. “There are no central databases for properties like the MLS in the U.S. Buyers search for homes in classified ads or through signs at the front of the house, sellers ask friends for referrals of brokers they have used in the past, agents drive around neighborhoods asking people one-on-one for leads on potential properties that might be available. Imagine buying a home before the internet. That is still largely the process in Indonesia today. The process is opaque, but digitization has the potential to remove a lot of this friction.”
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So far, Pashouses has processed 12,000 seller submissions and facilitated 2,000 house visits from buyers, leading to 500 transactions.
Added Pashouses CEO Junghans Tasani: “We are excited to tap into QED’s experience from fintech solutions in growth markets, especially in view of macroeconomic conditions globally.”
QED has invested in 12 proptech companies worldwide and believes that real estate is just one area prime for disruption in Indonesia. Globally, QED has invested in more than 200 companies across 18 countries.
“Some 40 percent of Indonesians are unbanked today, meaning the potential to help democratize access to financial products for large swarths of the country is huge,” said Patil. “At the same time, smart phone penetration is almost 62 percent. The opportunity to serve a digitally native population and to build on existing infrastructure is growing every day.”
Founded in 2007, QED Investors has invested in 28 unicorns and has $4.3 billion under management. In September 2021, QED announced it had closed a substantially oversubscribed $1.05 billion fund, including $550 million in QED Fund VII for early stage investments and $500 million in a new Growth Fund.
QED first announced it was entering Asia in December 2020, hiring Sandeep Patil as Partner, Head of Asia, to lead its investments on the continent.
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