NoBroker turns unicorn after $210 million funding from Tiger Global, others – The Economic Times

Clipped from: https://economictimes.indiatimes.com/tech/startups/nobroker-turns-unicorn-after-raising-210-million-from-tiger-global-and-others/articleshow/87867103.cmsSynopsis

The capital raising was at a post-money valuation of $1.01 billion, making NoBroker India’s first property tech (proptech) unicorn, or those startups with a valuation of $1 billion or more.

Mumbai: Real estate platform NoBroker.com has raised $210 million in a funding round led by General AtlanticTiger Global Management and Moore Strategic Ventures.

NoBroker: Founders of India’s newest proptech unicorn on company’s revenue strategy and much more

Real estate platform NoBroker.com has raised USD 210 million (Rs 1,575 crore) from investors, including General Atlantic and Tiger global, making it India’s newest unicorn. In conversation with ET Now’s Nayantara Rai, the company founders discuss the company’s revenue strategy. Watch
The capital raising was at a post-money valuation of $1.01 billion, making NoBroker India’s first property tech (proptech)unicorn, or those startups with a valuation of $1 billion or more.

NoBroker’s latest valuation is a 2.5x jump from last year, when it raised $30 million at a valuation of $400 million.

It has raised a total of $361 million till date from investors including Elevation Capital and Paytm founder Vijay Shekhar Sharma.

The Bengaluru-based startup has become the 36th unicorn this year, in what has been a record year from risk capital inflow into the Indian startup ecosystem.

The significant uptick in valuation comes on the back of an increase in the purchase and sale of real estate, the company’s offerings that went beyond its listing services, and a drop in interest rates post-Covid-19.

Indian Startups in 2021

“In the past couple of years, we have transformed ourselves from just a real estate transaction platform to a one-stop-shop. And this has given us a huge boost because clearly the number of transactions is increasing and customers are finding a lot more value in our services,” said cofounder Saurabh Garg.

The startup was founded by Garg, Akhil Gupta and Amit Kumar Agarwal in 2013.

It will use the funds to build its product and technology team, go deeper into existing markets and enter more markets, for marketing, and to build NoBrokerhood, its “gated-community” app and marketplace.

The startup also saw a boost in demand for homebuying during Covid-19.

“A huge number of transactions are coming from end-use customers, not investors who want to flip real estate quickly. So, the demand has been robust,” said Gupta.

The company’s revenue from operations in FY20 stood at Rs 63.34 crore. It said its revenue has been tripling every year.

NoBroker operates a brokerage-free real estate platform and captures the entire customer journey from listing a house to hiring packers and movers, securing a home loan, painting and cleaning services, legal services and rent payments, among other things.

It claims to have more than 15 million registered users across six cities — Bengaluru, Mumbai, Pune, Chennai, Hyderabad and Delhi-NCR.

The company did not reveal how many users pay for its services.

Sunil Mishra, head – strategy at Anarock Group real estate services said that the pandemic had accelerated technology adoption in the real estate sector in India.

According to news reports, Anarock is planning to raise Rs 1,000 crore from private equity funds for acquiring proptech startups.

Other startups in the proptech space include 99acres.com, Square Yards, PropTiger, and Magicbricks.

MagicBricks is owned by Times Internet Ltd, part of the Times Group which also publishes this newspaper.

“We have around 10% market share and our objective is to basically grow and make it 70%. Our competition is with the brokers and our going assumption is whoever can do the deal fastest and cheapest wins,” Garg said.

For the startup, 50% of its revenue comes from renting, buying, and selling and the remaining from home and financial services.

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