NoBroker became the 36th unicorn startup in India in 2021!
COVID was brutal for Real Estate industry with INR 1 lakh crore loss.
But NoBroker tripled its valuation from $350 million to $1 billion, in the same period.
How did they do that? Let's deconstruct it together 🧵
COVID was brutal for Real Estate industry with INR 1 lakh crore loss.
But NoBroker tripled its valuation from $350 million to $1 billion, in the same period.
How did they do that? Let's deconstruct it together 🧵
Structure:
1. Was there a need for NoBroker?
2. How's the business performing?
3. Why are VCs so interested in it?
4. What happens in the "long run"?
Thread continues below.
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1. Was there a need for NoBroker?
2. How's the business performing?
3. Why are VCs so interested in it?
4. What happens in the "long run"?
Thread continues below.
Read the full article and subscribe for updates:
buildd.co/funding/nobrok…
1/ Was there a need for NoBroker?
Existing online platforms for buying or renting places (MagicBricks, QuikrHomes) are marketing platforms for brokers — listings NOT made by owners.
NoBroker:
- Eliminates middlemen
- Tech based, brokerage-free, real estate platform
(contd.)
Existing online platforms for buying or renting places (MagicBricks, QuikrHomes) are marketing platforms for brokers — listings NOT made by owners.
NoBroker:
- Eliminates middlemen
- Tech based, brokerage-free, real estate platform
(contd.)
Lessons for startup founders:
1. Presence of competitors doesn't mean a successful startup can't be built in the space.
2. Extending the above point - in a big industry, there can be many winners.
1. Presence of competitors doesn't mean a successful startup can't be built in the space.
2. Extending the above point - in a big industry, there can be many winners.
2/ How's the business performing?
- 15 million+ registered users across 6 cities
- 3x revenue every year
BUT:
- Spent ~3 rupees to earn 1 rupee of operating revenue in FY20 ⇒ Expenses = INR 179 crore, Revenue = INR 63 crore
Another Unicorn that is burning cash to find growth!
- 15 million+ registered users across 6 cities
- 3x revenue every year
BUT:
- Spent ~3 rupees to earn 1 rupee of operating revenue in FY20 ⇒ Expenses = INR 179 crore, Revenue = INR 63 crore
Another Unicorn that is burning cash to find growth!
3/ Why are VCs so interested in it?
Software play (NoBrokerHood):
- Software for gated societies (already at 10,000)
- Lays different business models on top of it — home loans, packers & movers, legal, etc.
- 3rd party brands can sell to residents through this platform
(contd.)
Software play (NoBrokerHood):
- Software for gated societies (already at 10,000)
- Lays different business models on top of it — home loans, packers & movers, legal, etc.
- 3rd party brands can sell to residents through this platform
(contd.)
Other reasons:
- Investment in Indian proptech sector grew marginally from $549 million to $551 million (2020)
- Property considered an important asset to invest in — not for a quick buck but in the long-term
- Generally positive funding climate :)
- Investment in Indian proptech sector grew marginally from $549 million to $551 million (2020)
- Property considered an important asset to invest in — not for a quick buck but in the long-term
- Generally positive funding climate :)
4/ What happens in the "long run"?
Real estate is brutal & crowded space — NoBroker has to battle with >10 big competitors. But barriers to entry are high, so it'll come to how well they execute.
Betting big on diversifying with NoBrokerHood software platform.
Real estate is brutal & crowded space — NoBroker has to battle with >10 big competitors. But barriers to entry are high, so it'll come to how well they execute.
Betting big on diversifying with NoBrokerHood software platform.
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