We believe 99Acres strong positioning in the real estate segment (~45% market share as of October 2015) will be challenged by Quikr?s entry. When asked on the call about this potential competitive threat, 99Acres cited that globally general classified websites have not succeeded against specialized websites like 99acres. Also, general classified websites are mainly used for rentals, which is a small business for 99acres.
Real estate listings growth (+29% yoy) was strong as management highlighted competitive intensity in the real estate market eased a bit, but noted recovery in transactions would take much longer as real estate activity remains subdued.
