Proptech Unicorn NoBroker’s FY23 Loss Crosses INR 500 Cr Mark

Proptech unicorn NoBroker’s loss for the financial year 2022-23 (FY23) surpassed the INR 500 Cr mark. At a time when companies are about to file their FY24 financials with the Ministry of Corporate Affairs, NoBroker uploaded its financial statements for FY23 nearly 15 months after the end of the year. The documents revealed that the Tiger Global-backed startup’s net loss rose 64% to INR 506.2 Cr in FY23 from INR 309.1 Cr in the previous fiscal year.

Founded in 2014 by Saurabh Garg, Akhil Gupta and Amit Agarwal, NoBroker is a proptech platform that allows users to buy, rent, and list properties without any brokerage fees. It also offers tertiary real estate offerings, including packers and movers, rental agreement services, and painting and cleaning of houses. 

The startup’s operating revenue zoomed 87% to INR 609 Cr in FY23 from INR 325.8 Cr in the previous fiscal year. 

The startup primarily earns revenue through sale of subscriptions, which primarily includes renting of apartments and purchase of properties. Besides this, it also earns money from rental agreements, home interior renovation services, packers and movers, among others. 

Including other income, total revenue jumped 84.7% to INR 683.4 Cr during the year under review from INR 369.83 Cr in FY22. 

Where Did NoBroker Spend?

The startup’s total expenditure rose 75% to INR 1,189.7 Cr in FY23 from INR 678.9 Cr in the previous year. 

Employee Benefit Expenses: As it expanded its offerings, NoBroker went on an aggressive hiring spree. This was reflected in its employee costs, which jumped 66% to INR 435 Cr from INR 261.5 Cr in FY22. 

Miscellaneous Expenses: Expenses under this head soared 84% to INR 673 Cr in FY23 from INR 366 Cr in the previous year. While the financial statement didn’t provide a breakdown of miscellaneous expenses, it might include advertising expenses, payment gateway fees, among others. 

The startup last raised $5 Mn last year in a likely bridge round from internet giant Google. 

NoBroker entered the unicorn club in November 2021 after raising $210 Mn in its Series E round led by General Atlantic and Tiger Global Management. Overall, it has raised a total funding of about $365 Mn till date and was last valued The startup is currently valued at around $1 Bn. 

Soon after turning a unicorn, the startup forayed into the home interiors market in March 2022 and intended to invest INR 100 Cr for it, including expenditure on both marketing and hiring.

While NoBroker competes against the likes of MagicBricks, 99Acres, Booking in the home classified space, it competes against MyGate in the gated community space. In the home interior segment, its rivals are HomeLane, LivSpace, and Bonito Designs. 

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