How Aurum PropTech Built Its AI/ML Playbook With Its 360-Degree Tech Platform For Real Estate

A few years ago, real estate in India often elicited images of pushy brokers, the hassle of visiting multiple localities, and tough negotiations involving hefty sums—usually with little to no legal mediation or security for customers. However, technology, which has transformed nearly every aspect of our lives, brought change to this sector as well. 

Companies like Housing.com, 99Acres, NoBroker and others grabbed the limelight with rapid development and expansion, while others such as Aurum PropTech looked to take the slow road and build businesses that can withstand economic cycles and decades of changes. 

Aurum PropTech, a real estate technology company conceptualised in 2021, has reported an impressive 30% year-on-year (YoY) growth in revenue in H1 FY25. 

The company reported INR 137 Cr in revenue for H1FY25, as opposed to INR 105 Cr in the first half of FY24 (April to September period). Income from the rental business contributed a bulk of this with INR 80 Cr, while the distribution business contributed INR 40 crore revenue.  The real estate capital business saw the biggest spike in revenue YoY, growing by a staggering 350% from INR 2 Cr to INR 9 Cr in H1FY25.  

Listed on the BSE and NSE in the year 2013, Aurum PropTech, known as Majesco Limited changed its business model from InsureTech to PropTech after acquisition by Aurum Ventures group in 2021. Aurum Ventures Group, which is based out of Mumbai with active operations in Real Estate, PropTech and Asset Management, owns about 50% shareholding in Aurum PropTech Ltd.  Aurum PropTech’s share price  has grown by nearly 50% over the past 12 months, and ended trading on November 27 at INR 212 per share. The company’s current market cap has surged from INR 250 Cr in 2021 to presently around INR 1,500 Cr (with fully and partly paid up shares).

The challenges for Aurum were not very different from some of its more modern competitors. Most real estate stakeholders have established workflows that are built around non-tech systems. 

This means that legacy operations struggle to adapt to emerging technologies and more accessible service distribution. This is something Aurum PropTech identified early and raised the bar on its tech stack.

Aurum’s Prop Tech Stack

According to an EY report on tech adoption in commercial real estate, 58% of real estate companies surveyed shared that new-age systems do not integrate easily and require a major change to IT or business processes to implement new technology. 

On this front, Aurum PropTech is breaking the norm with AI-enabled features for discovery, match-making, sales automation, transaction management, and customer relationship management for its platforms and products including NestAway, Aurum Analytica, Sell.do and Aurum WiseX across real estate rentals, real estate distribution and real estate investments. 

The question at the heart of what Aurum was trying to solve is this: how can technology simplify property transactions – rental real estate, distribution of real estate and capital financing of real estate? 

The company’s steady focus on AI-driven analytics tools has given it a lead against its arch-rivals in the proptech business. With new innovations and products such as Aurum Analytica — more on this later — the company has streamlined key processes such as customer discovery and transaction management, engagement and onboarding, and post transaction relationship management. While maintaining a customer-first approach across rentals, purchase and investments. 

Apart from that, the company’s entry into the property co-living services through partnerships with local housing providers has created a diversified revenue stream for it which allowed it to hit the INR 137 Cr  mark and improve its EBITDA margins and unit economics.

Underlining its improving operational efficiency and cost management, the company has posted a 183 bps improvement in adjusted EBITDA on a quarter-on-quarter basis for the second quarter of the current fiscal (Q2FY25). 

Ashish Deora, Founder & CEO, Aurum Ventures  said that across segments, the rental business has been the key driver for Aurum’s boosted numbers for the quarter. 

“Our H1 FY25 results demonstrated growth across Rental, resilience across Distribution and institutionalisation across the Capital business segment. Revenue increased on account of the addition of short-stays, the introduction of value-added services and launch of two new cities in the Rental business,” Deora told Inc42.

AI Adoption Drives Efficiency

Aurum Analytica, the company’s in-house data analytics division, uses cutting-edge AI and machine learning (ML) algorithms to generate actionable insights. Apart from supporting the company’s core businesses, Aurum Analytica is now evolving into a pivotal standalone product and a key focus area for growth.

The company claims to have seen a 30% year-on-year growth in revenue from its AI-enabled lead generation services with over 100 new projects. 

In line with its growth strategy, Aurum Analytica has established new offices in Ahmedabad, Bengaluru, and Hyderabad, with plans to launch operations in Lucknow soon. 

Here’s how data is enabling Aurum PropTech to customise and automate its sales processes, while also contributing to overall operational efficiency. 

Deora attributed the contraction in quarterly losses to the ‘improved AI-enabled algorithms that allowed the company to reduce workforce dependency and push it towards a flat organisational structure in rental business which led to greater employee autonomy and open communication in the management.

Capabilities	Details
Tech-enabled distribution	Integration of Aurum Analytica & Sell.do for efficient distribution.
Data analytics & consumer profiling	Using data to profile consumers and drive targeted strategies.
Targeted marketing	Hyper-personalised marketing efforts aimed at specific consumer segments.
Programmatic advertising	Automated, data-driven ad buying with higher chances of reaching potential customers.
Data-enabled campaigns	Campaigns driven by deep data insights for precision targeting.
Sales automation	Automation of sales processes for increased efficiency.

Apart from strong growth in the rental and capital business segment, Deora elaborated that the proptech startup’s improved earnings is down to increased account coverage and penetration in the data analytics business.

Aurum Analytica’s AI lead generation has marked a 30% increase in revenue and signed more than 100 new projects. And the repeated mentions of AI in the company’s H1 FY25 presentation indicate that Aurum is bound to double down on its technology in the coming years.

Where’s India’s Real Estate Sector Heading?

Prop tech is certainly not a new concept, but the challenges related to scaling up the services and the customer base persist. 

Startups have tried to position themselves as super apps for B2C and B2B customers.

But so far technology has played the role of aggregator or matchmaker for real estate customers. Companies have not built a 360-degree suite that manages the end-to-end value chain in real estate. Which is why Aurum PropTech’s AI-powered tech stack could be a game changer in this sector. 

It might be surprising for some to know that more than 13,200 ultra-rich Indians and 200 institutional investors are making an annual real estate investment of nearly INR 80,000 Cr in the country for the last three years with expectations for the global market to grow at a rate of 16% YoY, reaching $1 Tn from $350 Bn.

As more and more skilled professionals migrate to Tier I and Tier II cities for work, the demand for Aurum’s rental business is expected to reach around 2 Cr units annually while currently, the company is providing its services only to 8 Lakh units across both co-living and family rentals, creating a huge supply-demand gap. 

The proptech major has already started to encash on this opportunity across rentals, purchases and investment in real estate. As  for the first half of the current fiscal, it managed 32,000 rental units, serving a total of 1.2 lakh tenants who collectively processed INR 135 Cr in rent payments. 

And even at this scale, Aurum only touches 4% of the total organised supply of rental units. 

The distribution of real estate essentially consisting of discovery, sales, transaction management and post sales presents a INR 34,000 Cr TAM in India which is split between aggregators, social media spends and broker fees. Aurum PropTech’s distribution business segment with market leading brands like Sell.do and Aurum Analytica are using AI products with offerings to more than 1,000 real estate developers across the country. In an underpenetrated market such as this, the first priority for any business is often scaling. However, Aurum PropTech has focussed, thus far, on building a robust tech infrastructure while also scaling up sustainably. 

Aurum’s PropTech’s diverse portfolio also includes its capital portfolio of businesses which enable real estate investments in a transparent, compliant, and efficient way. For this segment, the company manages INR 600 Cr as of the first half of the current fiscal, which only marks 0.75% of the available market in India of INR 80,000 Cr. 

With 680 active investors on its platform and INR 240 Cr in investments managed through a Category II AIF, the company already serves over 70 real estate developers. This segment holds immense potential for the company amid growing investment awareness and Indian investors’ increasing willingness to diversify through smart options. Aurum WiseX also applied for SM-REIT application in Q2 FY25 and is in active consultation on obtaining the license to launch rent yielding commercial real estate properties under it.

Aurum’s Roadmap Ahead

Aurum’s expansion across categories has been strategised to maximise the operational efficiency while also steadily incorporating AI algorithms for smoother customer interactions. 

In terms of the company’s rental business, HelloWorld, the co-living platform for students and young working professionals by Aurum PropTech, has added 22 new co-living properties, taking its total to more than 15,000 live beds, with expansions into Ahmedabad and Goa. 

To maximise the cash inflows during comparatively leaner periods of demand, the company is piloting short-stay offerings which will maximise the asset utilisation. 

Deora  also shared that the company has realigned its marketing and sales automation business, shifting focus on ‘core technology offerings with scale’. He further added that the core focus for the team lies in profitable growth, improved revenue quality, and scale. 

On the other hand, Aurum’s fastest-growing managed home rental network NestAway is integrating AI-enabled matchmaking features into its platform and going full force in corporate tie-ups that will add to the overall tenant acquisition in the long run.

In the investor presentation, the company claims it is considering a resale business which can leverage the existing rental inventory and further diversify the revenue streams for its customers. 

The distribution business segment, led by Sell.do, has been a key contributor to the company’s cash inflows, and is also likely to remain in focus, Deora  added. Further, new features for customers and brokers such as the AI-based WhatsApp chatbots and CRM tools for brokers are also expected to drive revenue growth and conversion for the real estate giant.

Last but not least, Aurum’s capital business segment, the standout performer for Aurum in H1FY25, will see a couple of major launches.

The company’s fractional ownership platform WiseX is in the process of applying for a small and medium-scale real estate investment trust (SM REIT) licence which would allow it to branch out to other revenue areas. SM REITs allow individuals to invest in rent-yielding properties such as office buildings, retail malls, hotels, hospitals etc. that are valued between INR 50 Cr and INR 500 Cr. 

Further, Aurum’s Integrow, which offers high-yielding working capital for the construction ecosystem in Mumbai and Pune is expected to launch a new residential fund with broader investment options.

This 360-degree approach is what sets Aurum apart from other prop tech players that have focussed on one vertical and scaled that up on the back of VC funds. However, seeing its positive cash flow and profits, Aurum can afford to take the sustainable product and service development road that other startups cannot possibly match. 

Aurum PropTech is set to host the ‘India PropTech Summit – 2024’ in Mumbai on December 2 at the Jio Convention Centre. This event will gather industry leaders, innovators, and stakeholders to discuss the future of property technology in India. The summit aims to foster collaboration and drive innovation within the industry.

Register here: https://www.aurumproptech.in/india-proptech-summit-2024