Bengaluru-based property listing portal for renting homes, NoBroker running under NoBroker Technologies Solutions Pvt. Ltd, has raised US $7.4 million (about INR 50 crores) as an extension to its Series B round from Korean investor KTB Network.
Existing investors SAIF Partners, BEENEXT, and Digital Garage also participated in this funding round.
The company connects property owners with prospective buyers or rental tenants directly with no need for a broker, as the name suggests. NoBroker closed a US $10 million Series B funding round in January, and this new raise is an extension of that.
“India’s domestic market is large, it is growing and has a very young population. We are happy to look at any Indian startup which has expertise in the area and is innovating to disrupt the status quo,” said Chun Soo Kim, team manager for investment screening at KTB.
Property Listing Portal NoBroker was founded by Akhil Gupta, an alumnus of IIT-Bombay, Amit Kumar Agarwal of IIT-Kanpur and IIM-Ahmedabad, and Saurabh Garg a graduate of IIT-Bombay and IIM-Ahmedabad in Bengaluru.
NoBroker is currently active in four cities — Bangalore, Mumbai, Chennai and Pune — across which it claims to have “served” 1.5 million customers to date. The company explained that figure combines the number of property owners who have listed at least one location with the number property seekers who have contacted at least one property owner. It broke out that it has racked up a cumulative 500,000 listings and 600,000 downloads of its Android app. (An estimated 95 percent-plus of smartphones in India run Android.)
On an average, the customer, who finds a house through the website, pays an average rental of INR 25,000 in Mumbai and Rs 19,000 in Bengaluru and Chennai.
This year, NoBroker experimented with an unannounced pilot in Manila, Philippines, but it is not immediately focused on expanding its service overseas at this point.
Customers use the site to find verified houses and can contact up to nine owners for free, beyond that the company charges between Rs 999 to Rs 5,999 through three plans, including assigning a relationship manager, he added. At present, 10% of the 6,000 transacting customers through the website use a paid service.
Besides, the company earns a referral fee through partnership with packers and movers and furniture rental company Furlenco for passing qualified leads, where the customer can make third-party payment through the website for additional discount. It also gets 90-95% of the revenue through the subscription plans.