Brokerage-free real estate platform NoBroker.com has raised $51 million in a Series C round led by private equity giant General Atlantic. Its existing investors SAIF Partners and BEENEXT also participated in the round. With this round, NoBroker Technologies Solutions Pvt. Ltd has raised $71 million.
This is General Atlantic’s first investment in a real estate business in India. Its portfolio includes management consultancy Mu Sigma, online tutoring app Byju’s, super market chain DMart and KIMS Hospitals.
The real estate platform will use the money to hire talent, expand to new cities, on marketing and for upgrading its technology and data science infrastructure at the back-end.
NoBroker.com claims to be the world’s largest peer-to-peer real estate platform. More than 2.5 million properties are registered on its platform, which has served over 6 million customers. Founded in 2014 by IIT and IIM alumni Akhil Gupta, Amit Kumar Agarwal and Saurabh Garg, NoBroker.com provides verified listings from property owners, without interferences from middlemen.
“We have been able to use technology effectively to make transactions faster and low cost for the end user with the help of machine learning and artificial intelligence. We plan to use this capital to further innovate and strengthen our ML/AI (machine learning/artificial intelligence) to make the transactions seamless and quicker," said Akhil Gupta, chief technology officer and co-founder of NoBroker.com.
It recently entered the commercial, offices and retail spaces segment targeting small companies. The platform also offers end to end solution for home seekers that includes a slew of services such as rental agreements (which are a pain point in markets like Mumbai and Pune), movers and packers services, special packages for non-resident Indians (NRIs), and relocation services for corporates.
“With increasing digital penetration, a new creed of real estate customers has emerged in India that wants the transaction to be convenient and fast," said Mayank Khanduja, principal at SAIF Partners.
NoBroker.com says it is adding 2 lakh customers on a monthly basis and witnessing 10 lakh customer connections every month. It closes 18,000 transactions every month saving Rs1,000 crore of brokerage in a year. The company has experienced 400% growth in customers in last 2 years.
In the meantime, NoBroker has also launched home store services which is a one-stop shop for the services that are required for a customer while completing a real estate transaction including loans, packers and movers, legal documentation, among others.
NoBroker currently operates an end-to-end transaction model in five cities - Mumbai, Bengaluru, Pune, Chennai and Gurugram, and intends to have a pan-India presence in the next 12-24 months.
Industry insiders say as NoBroker has already created a base of customers by steering them off brokers and middlemen and helping them save money, diversification in terms of new business offerings will become easy in the near future. “They can get into financing, even NBFCs and rental cycle management. They gave already created a clientele," said Anil Joshi, managing partner at Unicorn India Ventures, a venture capital firm.