Frontier Digital Ventures, one of the leading operators of online classified businesses in frontier and emerging markets has announced its investment in Hoppler, an innovative online platform used by vendors, buyers and real estate agents in the Philippines to enable property transactions.
The founders of Hoppler have identified inefficiencies in the local market and developed a network of professional brokers connected through the use of Hoppler’s proprietary deal management technology, Kumita. Hoppler’s unique business model creates an efficient solution for agents and consumers in a highly fragmented Filipino real estate agent industry. Built with an efficient and streamlined process, Hoppler has a 6% average close rate from online leads generated, compared to 2% for non-Hoppler leads.
Hoppler’s complete end-to-end platform means it has created a pure transactional revenue model, where it can share up to 50% of the sales commission with partner brokers once a transaction completes.
The platform currently receives an average commission of US$2,000 for its operations around affluent areas in Manila and claims its business model is similar to the commission-based businesses Redfin and Compass based in the USA.
Frontier Digital Venture's founder and CEO Shaun Di Gregorio said he looked forward to supporting Hoppler in their business ventures.
“Hoppler has built an incredibly scalable business model that is effectively digitizing the real estate brokerage market in Manila and progressively over the broader Philippines market," Di Gregorio said.
"Importantly, the Hoppler digital real estate agency business model has evolved organically in the Philippines due to localized issues with the existing real estate broking model. We look forward to supporting the rapid growth of their sales team and implementation of best-in-class management models to help Hoppler capitalise on their significant market opportunity.”
The investment in Hoppler follows Frontier’s strategy of evolving its revenue mix to be closer to the transaction and partnering with local entrepreneurs. Hoppler was founded by Ramon Ballesca, an experienced Silicon Valley entrepreneur who was previously a senior manager at Epiq Systems (NASDAQ: EPIQ) and a senior project manager for CaseCentral (subsequently acquired by Guidance Software). Ramon is the Chief Executive Officer of Hoppler and has been integral in establishing Hoppler as the premier transaction focused property portal in Southeast Asia.