DUBLIN, Ohio - reAlpha Tech Corp. (NASDAQ:AIRE), a company specializing in real estate technology, has acquired an 85% equity stake in the Singapore-based AiChat Pte. Ltd., a developer of AI-driven conversational customer experience solutions. The remaining 15% will be acquired on June 30, 2025.
The transaction, valued at $1.14 million, will be paid in shares of reAlpha's common stock in three installments beginning no earlier than January 1, 2025. Additionally, reAlpha has committed to invest $300,000 into AiChat, with the timing to be determined by both parties.
This strategic move is expected to enhance reAlpha's technological offerings, particularly by integrating AiChat's multi-language conversational AI into its platforms. AiChat supports over 250 languages and is known for its sentiment analysis and machine learning capabilities, which reAlpha anticipates will improve customer interactions and operational efficiency within its platforms, including the recently launched commission-free homebuying platform, Claire.
The acquisition is positioned to increase the usage and visibility of reAlpha's technologies in the Asia-Pacific region and potentially attract more customers seeking real estate solutions.
Giri Devanur, CEO of reAlpha, expressed enthusiasm for the acquisition, citing it as a significant step in bringing the global real estate industry into the digital era. Kester Poh, CEO and founder of AiChat, will continue to lead the company as part of the reAlpha group, aiming to enhance product offerings and expand market leadership.
The global conversational AI market, where AiChat operates, is projected to grow from $13.2 billion in 2024 to $49.9 billion by 2030, at a CAGR of 24.9%.
This news is based on a press release statement.
InvestingPro Insights
As reAlpha Tech Corp. (NASDAQ:AIRE) embarks on enhancing its technological prowess with the acquisition of AiChat Pte. Ltd., it's noteworthy to consider the company's current financial health and market performance. According to InvestingPro data, reAlpha holds a market capitalization of $61.33 million, which provides a sense of the company's size in the financial market.
InvestingPro Tips highlight that reAlpha has seen a significant return over the last week, with a 12.1% increase, and an even more robust performance over the last month, with a 34.95% surge. This momentum is further underscored by a 63.15% increase over the last three months, showcasing a short-term uptick in investor confidence which could be tied to strategic moves like the recent acquisition.
While reAlpha's stock has been characterized by high price volatility, the company's liquid assets exceed its short-term obligations, suggesting a degree of financial stability in the near term. However, it's important to note that reAlpha has not been profitable over the last twelve months, which could be a point of concern for potential investors.
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For a comprehensive analysis of reAlpha's financial health and market performance, including an assessment of its fair value, readers can visit https://www.investing.com/pro/AIRE. There are 13 additional InvestingPro Tips available, providing a more nuanced understanding of the company's position and prospects within the industry.
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