Digital Classifieds Group (DCG), the Australian company that bought proptech firm Lamudi Indonesia in 2023, has entered into ‘External Administration’ or ‘Controllership’, according to a filing to the Australian Securities & Investments Commission, seen by DealStreetAsia.
The firm has appointed Daniel Peter Juratowitch, CEO of the advisory and restructuring firm Cor Cordis, as its ‘administrator’ and ‘controller’, according to the document.
The move signals financial difficulties and the administrator will help the company manage its challenges.
Voluntary administration is a legal process wherein a company that’s in financial trouble voluntarily appoints an independent administrator to help restructure its debt or facilitate its eventual sale. This allows the company to continue operations while the administrator works to resolve financial issues, usually by selling assets, finding a buyer, or negotiating better terms with creditors. The appointed administrator typically has 6-8 weeks to explore these options and determine the best path forward.
Confirming the development, DCG said in an email response: “This process is designed to help companies facing financial challenges explore potential solutions, including recapitalisation or restructuring. In Australia, voluntary administration typically lasts around five weeks. All of DCG’s subsidiaries continue to operate as normal in their respective markets.”
DCG owns several leading proptech businesses across Asia, including Lamudi Indonesia, Lamudi Philippines, BProperty in Bangladesh, Realestate.com.kh in Cambodia, and Hausples in Papua New Guinea.
Lamudi, which has been operating in Indonesia for a decade, has two core businesses: a marketplace that helps developers and agents market their properties, and a transaction service that facilitates sales.
Experts say that the financial troubles of DCG could affect the potential synergies between the Australian company and Lamudi in Indonesia.
In December 2024, Lamudi acquired Indonesian peer Ideal.id for an undisclosed amount. Ideal.id is backed by AC Ventures and Alpha JWC. This acquisition was aimed at strengthening Lamudi’s position in the competitive Indonesian real estate market by expanding into the mortgage space, leveraging Ideal.id’s operations and mortgage licensing.
In August 2024, Living Lab Ventures, the corporate venture capital arm of Sinar Mas Land, had invested in the parent company of proptech startup Lamudi.
DCG’s voluntary administration raises questions about the future of Lamudi. Besides, Sinar Mas Land may have to evaluate if they want to support Lamudi during the restructuring or cut its losses.
