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Bangalore-based P2P rental marketplace, NoBroker, has raised $10 Mn in Series B round of funding, led by BEENEXT & Digital Garage, along with other investors like BEENOS, Qualgro and Mamoru Taniya (of Asuka Holdings). Its existing investor SAIF Partners also participated in the round.
With this round of funding, the company has raised a total funding to the tune of $13 Mn. In February, last year, it had raised $3 Mn from SAIF Partners & Fulcrum Ventures.
NoBroker.com was founded by Amit Agarwal and Akhil Gupta in 2014, The company has seen its customer base grow from 35,000 to 650,000, in the last 12 months.
Amit Kumar Agarwal, CEO and co-founder of NoBroker, said, “We have seen this growth despite us moving from a free to a subscription-based fee model. This shows that the customers’ need & acceptance of a brokerage free real estate platform. Our revenue is doubling every month. Focus is to build a profitable business by breaking even next year.”
The startup plans to use the funds to grow further and strengthen its customer base.
NoBroker has created a disruption in the real estate space by eliminating brokerage and creating the P2P real estate platform. With this, it claims to have enabled more than 4,00,000 customer connections on a monthly basis.
The startup has a presence in four major cities including Mumbai, Bangalore, Pune and Chennai, and says that it has saved more than 15 Cr. of brokerage every month.
Solving The Problem
The market size of residential rental and resale brokerage, in the top 20 cities (in India) alone, is estimated to be $ 6.5 Bn; and it is expected to grow to $17 Bn in the next 5 years. Saurabh Garg, Chief Mentor & Angel Investor in NoBroker, opines that the company is disrupting, redefining and democratising the real estate sector for the benefit of the customer. For instance, a typical rental transaction would cost two month’s brokerage, and a resale transaction would cost buyers & sellers a combined 4 to 6 percent of the deal value, as brokerage. However, NoBroker has managed to crash this transaction value and put the savings back in customer’s pocket.
The company has disrupted the real estate space by offering brokerage-free rental services and brokerage free buy/sell feature. It competes with startups like Zocalo, NestAway, Eezyrent, and GrabHouse, among others.
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