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Anything that has to do with real estate, specifically as a purchaser, is convoluted and often, annoying. The constant nagging by middlemen and sellers, lack of fluid communication, and running helter-skelter to get the paperwork done are just a few of the obstacles in the world of real estate. However, there's a shining light at the end of this real estate tunnel!
NoBroker, a Bangalore based real estate search portal is connecting flat owners and tenants/buyers, directly and making selling and buying real estate simpler. Read about NoBroker, how NoBroker works, owner, Business model, Revenue Model, competitors, app, founders, wiki, valuation.
NoBroker - Company Highlights
| Startup Name | NoBroker |
|---|---|
| Headquarters | Bengaluru |
| Co-founders | Amit Kumar Agarwal, Saurabh Garg, and Akhil Gupta |
| Founded | 2014 |
| Sector | Real Estate |
| Founded | 2014 |
| Legal Name | NoBroker Technologies Solutions Private Limited |
| Website | nobroker.com |
NoBroker - About and How NoBroker Works
NoBroker - Founders and Team
NoBroker - The Idea
NoBroker - Business Model
NoBroker - Revenue Model
NoBroker - Growth and Revenue
NoBroker - Funding and Investors
NoBroker - Competitors
NoBroker - Future Plans
NoBroker - FAQs
StartupTalky
NoBroker and How NoBroker Works
As the name suggests, NoBroker’s vision is to remove the need for brokers in real estate related dealings. The portal eliminates the presence of middlemen who are known to eat away exorbitant amounts from the purchaser in the name of the commission. It does not charge any brokerage from either party. Founded in 2014, the company claims to have nearly 70 lakh cumulative customers and is operational in 6 cities: Mumbai, Bangalore, Pune, Chennai, Hyderabad, and Delhi NCR.
NoBroker also introduced a crowdsourcing feature through which users can put up rental listings. This way, anyone can click and upload a picture of any TO-LET board with the genuine owner details. The startup also pays people in case a conversion happens.
The team has analyzed the entire value chain of house hunting and replaced everything that a broker does with technology, different from other online real estate portals. It gives smart recommendations to customers based on real-time data and assists in informed decision making.
The user has to give a missed call or leave a WhatsApp message for property listing. An executive then calls and helps him/her list the property. Potential tenants can then go through listings using specific search options and filters. They can then directly contact the landlord to close the deal. One can also make custom rental agreements on NoBroker.
The portal has gone as far as removing certain listings that discriminated on gender and religion. The services can be accessed both from the company's website and the NoBroker app. The app allows users to look for property, list property, find flatmates, communicate with potential buyers/sellers/tenants, and much more in a hassle-free manner.
StartupTalky
NoBroker - Founders and Team
NoBroker was founded by IIT(Bombay) and IIM Ahmedabad graduates—Amit Kumar Agarwal, Akhil Gupta, and Saurabh Garg. The NoBroker owners realized that brokers do not add value in a real estate transaction and still charge massive fees.
Akhil Gupta is the Chief Tech & Product Officer of NoBroker. An alumnus of IIT Bombay, Akhil worked as an engineer at Oracle, and as a technical lead at PeopleFluent, a Software-as-a-Service talent management solutions provider, before joining NoBroker.
NoBroker CEO Amit Agarwal is an IIT Kanpur graduate. He has had several stints; he was an analyst with Cognizant, a principal consultant at PwC, and the associate director at Australia New Zealand Bank Group, before starting his own venture.
Saurabh Garg is the CBO of NoBroker. He's also the co-founder and director of The Four Fountains Spa. Saurabh is an alumnus of IIT Bombay.
NoBroker - The Idea
The idea came from pathetic experiences with brokers and the unavailability of a favorable solution. NoBroker was founded because the co-founders (Agarwal and Akhil Gupta of IIT Bombay) believed that paying hefty brokerage wasn't necessary for finding a new home. The idea was conceived in late 2013 and the website was launched in March 2014.
StartupTalky
NoBroker - Business Model
It is a peer-to-peer site that allows home owners/sellers and prospective tenants/buyers to connect directly, eliminating the need for a broker. It offers a subscription business model for tenants/owners as well as the property owners/sellers.
NoBroker - Revenue Model
The NoBroker revenue model has two parts:
- First, by attracting advertisements from furniture start-ups (it claims over 2.5 million user visits per month). It also earns revenue by offering services such as connecting tenants with movers and packers and drafting rental agreements.
- Besides, the company offers various packages as per various requirements of house owners/sellers and tenants/buyers who are looking for a house. The price of these packages varies on the basis of the services included in the package. As revealed by the founders, 70% of NoBroker's revenue comes from subscription plans.
The rental agreement services provided by the startup has made life easy for both tenants and house owners. This is how you can get your rental agreement done-
- It Prepares draft of Leave & License agreement between both the parties as per legal requirements
- After approval from both parties, NoBroker team gets the document stamped
- Execute the agreement between both parties
- Enter the agreement details online for registration
- Book an appointment on your behalf
- Complete the process on registration day with you.
- Once the agreement is done, the same is sent to the tenant's/ house owner's address be it a weekday or weekend.
StartupTalky
NoBroker - Growth and Revenue
In the fiscal year 2018, NoBroker revenue from operations was Rs 8.6 crore, while the company recorded a loss of Rs 31.4 crore. NoBroker reported 48% increase in losses in the financial year 2019 at Rs 46.5 crore.
As per 2019 data, the company adds around 1.5 lakh new properties to its website and closes on an average of 15,000 properties every month. While 85% of the properties listed on the platform is for rentals, around 15% is listed for sale. As said by NoBroker owner Amit Kumar in an interview, the company is adding 280,000 new users each month.
The major factor for its fast-paced growth is the ‘click and earn’ program it runs to incentivize individuals who add listings on the website. Users that run into a property listed offline simply take a photo of the building and send the details. On receiving the info, the team follows up on the lead and calls the owner. If the property is listed, the user who snapped the first photo is compensated with 100 INR (around $1.50) in their Paytm wallet. The feature itself is responsible for around one-third of all new listings on NoBroker, a highly impressive statistic!
StartupTalky
NoBroker - Funding and Investors
NoBroker has raised a total of $214.5M in funding over 10 rounds.
| Date | Stage | Amount | Investors |
|---|---|---|---|
| March 2014 | Angel round | - | Saurabh Garg |
| February 2015 | Series A | $3 Million | Fulcrum Venture India, SAIF Partners |
| February 2016 | Series B | $10 Million | SAIF Partners, BEENEXT, Digital Garage, Beenos Partners & rocketship.vc |
| December 2016 | Series B | $7 Million | SAIF Partners, BEENEXT, Digital Garage, KTB Ventures |
| June 2019 | Debt Financing | $2.4 Million | Trifecta Capital Advisors |
| June 2019 | Series C | $51 Million | SAIF Partners, General Atlantic, BEENEXT, rocketship.vc |
| September 2019 | Venture Round | $51 million | Tiger Global Management |
| October 2019 | Series D | $50 Million | Tiger Global Management, General Atlantic |
| November 2019 | Venture Round | $10 Million | General Atlantic |
| April 2020 | Series D | $30 million | General Atlantic |
As reported in July 2019, NoBroker was valued at $311 Million. As such, after the investment made in the company by Tiger Global Management and General Atlantic in October 2019 and November 2019, NoBroker' estimated valuation is around $371 Million. This is about 16.24% jump in valuation from July 2019.
NoBroker investors are Fulcrum Venture India, SAIF Partners, Beenext, Digital Garage, Beenos Partners, Rocketship.vc, KTB Ventures, Trifecta Capital Advisors, General Atlantic, and Tiger Global Management.
NoBroker - Competitors
The company is up against some formidable rivals in the Indian property segment. Top competitors of NoBroker are SoftBank backed Housing.com, and PropTiger (which has received funding from News Corp). Other competitors include Quikr, Magicbricks and 99Acres.
StartupTalky
NoBroker - Future Plans
NoBroker has immediate plans of expanding within India, but it also has its eyes set on the overseas market. The company has a firm belief in expansion as the path to reap dividends. It is aiming to reach 20 cities in India in the nest 2-3 years. The company is also looking forward to close 20,000 to 25,000 transactions every month by the end of FY 2020.
NoBroker - FAQs
Who are the Founders of NoBroker?
NoBroker was founded by IIT(Bombay) and IIM Ahmedabad graduates—Amit Kumar Agarwal, Akhil Gupta, and Saurabh Garg.
What is NoBroker?
NoBroker, a Bangalore based real estate search portal is connecting flat owners and tenants/buyers, directly and making selling and buying real estate simpler. NoBroker’s removes the need for brokers in real estate related dealings.
How much is the Revenue of NoBroker?
In the fiscal year 2018, NoBroker revenue from operations was Rs 8.6 crore, while the company recorded a loss of Rs 31.4 crore. NoBroker reported 48% increase in losses in the financial year 2019 at Rs 46.5 crore.
How NoBroker makes money?
Around 70% of NoBroker's revenue comes from subscription plans by offering various packages, Advertisements from furniture start-ups (it claims over 2.5 million user visits per month). It also earns revenue by offering services such as connecting tenants with movers and packers and drafting rental agreements.
Author: Chayanika Goswami
Source : https://startuptalky.com/nobroker-successful-startup/
Date : 2020-09-16T08:30:00.000Z