Shares of Aurum PropTech Ltd, formerly Majesco Ltd, surged more than 5% after its board approved the acquisition of Tiger Global and Ratan Tata-backed NestAway Technologies for Rs 90 crore.

Aside from consideration, Aurum PropTech will also inject Rs 30 crore to help stabilize NestAway’s business. The company said the investment demonstrates a strong belief in the potential of the $20 billion rental housing market.

At 10 am, the stock was trading at Rs 124 on the BSE, up 5.4% from its previous close, while the benchmark Sensex rose 0.16% to 62,526.

NestAway, India’s leading PropTech brand, has raised $110 million in financing, and its latest valuation in 2019 reached $220 million. The release said that Tiger Global, UC-RNT Fund, Flipkart, Goldman Sachs and Yuri Milner are its investors.

Before the COVID-19 pandemic, NestAway had a platform of 50,000 properties and an annual revenue of Rs 100 crore.

The release said NestAway has downsized with 18,000 properties and an annual revenue of Rs 30 crore. Despite declining listings, the release said the platform maintained steady website traffic, attracting 6 lakh visits.

In June 2022, Aurum PropTech completed the acquisition of HelloWorld by NestAway. Within a year, Aurum PropTech scaled up HelloWorld’s operations, leading to the strategic acquisition of NestAway.

Jitendra Jagadev and Ismail Khan, who were originally part of NestAway’s financing team and later became the founders of HelloWorld, will now assume leadership roles at NestAway following the acquisition, the company said.

Aurum PropTech has appointed Jagadev as CEO and Khan as NestAway’s COO. The release said the leadership transition aims to leverage their expertise to drive further growth and success of NestAway under Aurum PropTech’s ownership.