New Delhi-based online marketplace for broker-free rented accommodation, Zocalo.in, has raised funding from a clutch of prominent investors. The round saw the participation from MakeMyTrip & TrulyMadly’s co-founder, Sachin Bhatia; GSF Accelerator & InnerChef founder Rajesh Sawhney.
Other investors who participated in this round of funding are Advantedge Incubators Pvt Ltd, former MD of The Carlyle Group, Mahesh Parasuraman; Udaan Angels and Dheeraj Jain, partner with a prominent UK-based hedge fund.
Founded in 2014 by Uday Lakkar, Zocalo is an online platform for broker-free rented accommodations in India that provides listings for various renting apartments and paying guests accommodations. Company’s USP is that they provide proprietary reviews & rating platform over the PG or rented space to help seekers choose the right neighbourhood and accommodation.
The platform has an inventory of 75,000 PG & hostel beds and more than 10,000 accommodation listings with 6,000 new listings being added every month. The company has its presence across Delhi-NCR and Mumbai as of now and it plans to expand to other cities.
Solving the Maths of renting an Accomodation
There are some drawback that a seeker faces while renting a PG or accommodation. One of them is paying brokerage. People don’t see the value when they pay so much brokerage. It’s like one month brokerage with 11 months contract. So which is 1/11 or 9% on part of 1%. Similarly, on part of property provider, it’s another 1 month of brokerage. So the leakage in the value chain is upto 18%, which is huge. “So when we started while knowing that commonfloor and Housing being already in the space, we found that this is a very strong premise based on which Zocalo could start. Second aspect is the uniqueness of the site that acts as an counterpart to find the right suit for the place that one wants to select.
The softer elements such as the number of times the power is cut off, what is the management and security of the area or probably is it a noise free zone or not or may be things like is there a water clogging in front of my office are also been informed.”