Akhil Gupta, Amit Agarwal, and Saurabh Garg also saw an opportunity to improve the bleak situation of real estate and launched NoBroker.
NoBroker, a Bangalore-based firm in the real estate search domain, was founded in 2014 and links flat and property owners with renters and purchasers directly through their platform, making property purchasing, selling, and renting easy, transparent, and economical.
NoBroker claims to handle over $2 billion in transactions per year on its platform and claims to have saved Indian real estate consumers over INR 5000 crores in brokerage fees too far. By 2020, the platform will have saved them roughly Rs 1,100 crores in trading fees. The firm also aspires to assist Indians in ushering in a new age of seamless and simple real estate transactions free of “brokers.”
According to IBEF projections, the Indian real estate industry, which was valued at Rs 12,000 crore (US$ 1.63 billion) in 2019, is predicted to increase steadily, reaching Rs 65,000 crores ($8.83 billion) by 2040. Furthermore, India’s real estate market, which was predicted to be worth roughly US$ 120 billion in 2017, is expected to expand to US$ 1 trillion by 2030 and contribute nearly 13% of the country’s GDP by 2025.
In addition, according to ICRA, Indian companies are likely to raise more than Rs. 3.5 trillion (US$ 48 billion) through infrastructure and real estate investment trusts in 2022, compared to the US$ 29 billion raised so far.
The rising urbanization of tier-II and tier-III regions, rising average household income levels, and the emergence of nuclear families would all contribute to the real estate sector’s expansion in residential and commercial spaces. In the aftermath of the epidemic, another element driving this rise will be the growing trend toward homeownership.
The COVID-19 epidemic highlighted the value of owning a home and the financial stability that comes with owning such a valuable physical asset. This shift in consumer mood will have a significant impact on market dynamics.
NoBroker has grown into numerous other areas over the years, including financial services (to assist consumers with acquiring rent, for example) and home services such as cleaning, furniture delivery, and movers and packers. These services are also offered to consumers who have not rented or purchased a property via NoBroker.
NoBroker is a digital peer-to-peer marketplace that connects homeowners/sellers and potential tenants/buyers directly without the need for a broker. Customers wishing to purchase, sell, or rent a home might use a subscription-based business model.
There are four revenue models used by NoBroker:
- Freemium model for tenants
2. Freedom plan
3. Relax plan
4. MoneyBack plan
Apart from that, NoBroker provides a wide range of home services, including packers and movers, house cleaning, house painting, interior design, and much more. NoBroker’s revenue comes from a variety of sources, including these.
Tiger Global, General Atlantic, and Moore Strategic Ventures led a $210 million Series E financing for the eight-year-old NoBroker. This is the company’s largest fundraising round to date.
NoBroker will use the current amount of money to improve its technology and grow its efforts in-home services and financial services. “We employ machine learning and artificial intelligence to make the entire process painless for the end-user and transactions cost-effective,” said Akhil Gupta, co-founder and chief technology and product officer of NoBroker.
Paytm’s Vijay Shekhar Sharma, serial investor Anand Chandrasekaran, BEE NEXT, Elevation Capital, and others have all contributed to NoBroker’s $361 million funding round.