How NoBroker is rewriting the rules of the real estate market

To understand if NoBroker succeeded in disrupting India’s real estate market, rewind to 2015. That’s when a group of 50 brokers burst into the then-year-old startup’s office in Bangalore, destroyed his gadgets and assaulted his employees.

Brokers have been angry with NoBroker for destroying their livelihoods by helping potential buyers and renters avoid middlemen and eliminate brokerage fees.

Fast forward to May 2022, and NoBroker, which became India’s first property tech and real estate unicorn last year, has set itself more ambitious goals such as helping clients save $3 000 crores of rupees in brokerage fees this year, become profitable in two years and take its services in 50 Indian cities in the next five years. “We have just scratched the surface, we have a long way to go, because the market is huge,” NoBroker Co-Founder and Chief Commercial Officer, Saurabh Garg, Told. DH.

The startup, which has helped clients save Rs 7,000 crore in brokerage fees since 2014, said Indians typically pay brokerage fees worth Rs 1,40,000 crore every year.

show me the money

So how does NoBroker make money?

The peer-to-peer real estate portal earns money primarily from subscriptions, financial offers and home services, chief executive Amit Kumar Agarwal explained.

NoBroker subscriptions, which make up the bulk of its revenue, are priced at Rs 999 for 45 days and allow customers to use premium filters when searching for apartments.

“The revenue mix is ​​evenly split between buy/sell and rent,” Garg said. DH. “Generally, a person will rent five to six times before buying a house.”

Once he gained a stable clientele, NoBroker moved into financial services and was paid by banks every time he helped a client get a loan from them. The startup also offers in-home services such as cleaning, packing, moving, furniture rental, interior design and online deal support. It also runs a service called “NoBrokerhood” which helps residents of gated communities stay connected and manage their visitors.

“The goal of these companies is to add more value-added services and as long as they are able to monetize them, they will continue to disrupt traditional business models,” said Akhil Saraf, founder and CEO of the provider. real estate digital equipment. Reloy. “The future of proptech companies in the digital age is to provide comprehensive services to customers. For now, it is very early because continuous revenue must be generated to create a level playing field.” NoBroker, who counts among its investors General Atlantic, Tiger Global, SAIF Partners, Beenext and Paytm founder Vijay Shekhar Sharma, has 1.6 crore registered users in Bangalore, Mumbai, Pune, Hyderabad, Chennai and Delhi – NCR.

It has 75 Lakh properties registered on its portal and transacts worth Rs 3,000 crore every month. It competes with Stanza Living, NestAway, Quikr, and Zolo. “Because there is a technological advantage, these players are taking businesses away from traditional brokers where they know how to execute the transaction,” Saraf said.

The road ahead

NoBroker saw its operating revenue jump to Rs 63.34 crore in FY20 from Rs 18.08 crore a year ago, according to Entrackr, but the growth has come at a cost.

While the startup was profitable in Mumbai and Bengaluru, the startup as a whole will take “about 18 to 24 months on a variable basis” to become profitable, Agarwal said.

The rental property market as a whole is booming in India and has received more than $1 billion over the past five years with nearly 400 funding rounds, according to data from Crunchbase, a platform that provides business information.

NoBroker now wants to get ahead of its competitors by courting EV users. It has partnered with ElectricPe to set up more than a lakh of electric charging stations in residential communities and with electric vehicle maker Bounce to provide battery swap services.

And it will continue to add such services. “A lot of these services came because the client asked for them, so I think a lot of these things will continue to happen,” Garg said. “We want to be a one-stop shop.”

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