Even after a number of players in the online real estate in the country the process has not simplified a bit as it still remains complicated and time consuming due to the involvement of brokers/agents. A Mumbai-based startup NoBroker has gained popularity and has now raised $3 Mn from SAIF Partners & Fulcrum Ventures. The said funds will be used to expand its service to more cities beyond Mumbai and Bangalore.
On this development CEO Amit Agarwal said that a peer-to-peer chain has to happen. He added,”Online property sites have become a sort of advertising portal for brokers… yes, you can find properties on your own, but you still have to pay the broker, he will take his pound of flesh when you go there physically.” Revealing the statistic he said a broker can pocket upto 18 percent of annual rent agreement from both the tenant and homeowner.
The company also raised an undisclosed seed round last year. The startup wants to simplify the process of renting properties. It believes that a peer-to-peer model, facilitated by its site, can slice out property brokers, the kingpins who control rental deals and take a large slice of commission for matching landlord and tenant. It was founded by Amit Agarwal and Akhil Gupta in March 2014 and has plans to expand to 20 cities over next 2 years.