As rightly quoted by our respected Prime Minister of India, “We have a million problems, but at the same time, we have over a billion minds,” which has transformed the country’s reputation as a nerve center for many global investors’ investments.
This kind of ecosystem has been developing at a pace owing to the COVID-19 pandemic and the various government policies like “Make in India” to promote small businesses in towns to come at par with global standards.
One such idea came into the limelight in March 2014, Now NoBroker becoming India’s First Reality Unicorn Startup.
NoBroker – About the company
One of the most recurrent issues tackled in real estate is the brokerage and the high demanding fee of the same. That brings NoBroker into the picture.
It is a website where you can buy, sell and rent properties in different cities in India without interference from a third party. NoBroker’s website is now a big hit in 11 major cities in India, including Bangalore, Mumbai, and more.
It has over 7.5 million properties listed on its site and more additions coming the way owing to its expansion. It now counts to a value of 16 million users with every recorded increase.
About Founders
Moving to a new place has an imperative role in finding properties for renting or buying, and hence the harassment of brokerage becomes inevitable.
This triggered two IITians to end the age-old traditional methods and shift to a digital approach removing the middle man from the picture.
In 2013, Amit Kumar Agarwal, and Akhil Gupta, after joining with Saurabh Garg, created the concept of NoBroker. Both Agarwal and Gupta had fallen while renting apartments in Mumbai and Bangalore.
When he wanted to renew the lease for his apartment, Agarwal had to pay double the rent to the broker, who intervened even though both the owner and Agarwal tried to keep him out.
These experiences inspired the idea, which is now known as the first Real Estate Unicorn Startup.
About their Business & Revenue Model
The website is a digital peer-to-peer model developed to remove the middle man from the picture. This provides a subscription business model to customers who are involved in the action.
This kind of model allows for a better UI experience where the brokerage cost is levered or eradicated for certain types of transactions.
The implication of the same is that the customer is paying at a regular interval for smooth access to the product. This creates a predictable future revenue stream alongside better customer relations.
NoBroker – Funding and Investment
The company has been evaluated and estimated valued at ₹7,763 crores or 1.03 billion dollars, making it the first Realty Unicorn Startup.
A raise of 210 million from its Compulsorily Convertible Preference Shares (CCPS), which is now the characteristic way of investments in private equity firms, was put forward to the renowned global investor’s Tiger Global, General Atlantic, and Moore Strategic Ventures in the funding round.
About their Acquisition and Achievements
The Series E funding round had them leaving the place with a $90 million investment from General Atlantic, followed by Tiger Global and Moore Strategic Ventures, giving $70 million and $50 million, respectively.
As per the Shareholder agreement later signed between the investors and NoBroker, the company has partly agreed to pay optionally convertible preference shares.
The three founders now have optionally convertible preference shares (OCPS) worth an estimated ₹233 crores with a pay cut of rupees ten per share.
Their shares contribute to a 6.09% stake in the company for Amit Kumar and Akhil Gupta. This is followed by Saurabh Garg, who has a 4.45% stake.
Global Atlantic is the largest stakeholder with 32.41%, followed by Tiger Global and Moore Ventures estimated at 17% and 14.4%.
NoBroker – Future Plans
When the world came to stand still in the pandemic, NoBroker, over 3 years, expanded its reach to several additional segments such as financial services.
Originally the site started as a simple rental interface but soon expanded to buy, sell, and rent properties. The limit is now expanding to home management services and movers and packers’ household help.
The focus currently is on financial services. While involvement with real estate brokerage is not the only factor, other things to follow are insurance, home loans, agreement, stamp costs, etc., which will provide a more user-friendly approach to the website.
Conclusion
NoBroker has shown the upcoming generation how to open the digital era gates for India to come at par with global standards.
What was once only imagined has now been proved by NoBroker through its constant efforts of past years.
They have also established the newfound interest of investors in India for the next 10 years owing to such ideas leading the way to the invention or innovation of breakthrough technology.
