NoBroker “Brokers” $51 Million For Indian Buyers And Renters
NoBroker, a real estate property startup, just managed to raise a big amount in pursuit of a mission to provide for Indian real estate investors. The Bangalore-based property investor revealed to Tech Crunch that it had completed a sum of $51 million to raise funding done through a Series C financing round.
The five-year-old startup's efforts were aided by General Atlantic, according to the report. The firm valued NoBroker in the neighborhood of $200 million, someone close to the transaction revealed. SAIF Partners and BEENEXT, current partners of NoBroker, were also involved with the transaction. So far, the capital NoBroker has managed to amass amounted to $71 million.
NoBroker operated in Bengaluru, Chennai, Gurgaon, Mumbai, and Pune, and has also become one of the largest players in the real estate scene in India. Through the years, it has about 2.5 million properties listed on its website and had served around 6 million users from 1.5 million a couple of years ago. The startup's main purpose is to help Indians looking for apartments fine those without the help of third-parties or brokers.
The details of the transaction were revealed further in a report by Economic Times India. General Atlantic's role in the fundraiser was to lead it with a $41.5 million cheque investment. SAIF followed suit with an investment of $7.5 million in the online real estate listing, which listed properties for buying and renting.
Aside from that, the platform also offered other services ranging from rental agreements to rent payment management. The company separated itself from the others by not charging any brokerage amount from any party up to a certain limit, but offered packages which ranged from Rs 999 to Rs 5,999 for certain services.
Akhil Gupta, the co-founder of the company, said that as much as 70% of the firm's revenue came from subscriptions. These subscription plans let owners connect with tenants or buyers find sellers. The company's services in 2018 were the value at around $1.2 million from a loss of $4.5 million, a filing inquiry showed.
Amit Kumar, the CEO, and co-founder of NoBroker, told reporters that they intended to use the fresh capital in an expansion of operations across India. He further stated that the funding round is to support plans to serve more customers and to accelerate growth in the customer and deal-closure growth departments.