NoBroker.com, which aims to eliminate the broker interference while buying property, has raised $10 million in a Series B round from Japan-based investors Beenext and Digital Garage along with Singapore-based Qualgro, Asuka Holdings’ Mamoru Taniya, and existing investor SAIF Partners.
The funds will be used for future growth and strengthening the customer base on NoBroker. The company offers brokerage-free rental services and brokerage free buy/sell feature. It connects the buyers and sellers/tenants directly on its peer-to-peer platform where both can directly connect with each other.
The reason is that the company believes that brokers ultimately get their fees from the amount you are able to shell out for the property and so the natural tendency is to show more expensive property rather than based on buyer’s need.
In addition to facilitating connections between two parties, the startup also provides the necessary legal documents which are customized for every deal. They even send the documents directly to the homes of tenants, even on weekends.
The startup was founded in 2013, and currently claims to have 250,000 current listings and 650,000 registered users in four major cities Mumbai, Bangalore, Pune, and Chennai. It claims to have saved more than 15 Cr. of brokerage every month facilitating 500,000 connections per month.
In the last year only, since it raised $3 million in Series A, NoBroker has seen its customer base grow from 35,000 to the current number of 650,000.
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.
He further said that their revenue was doubling every month and that they were now focussing on profitability and break-even by next year.
In addition to the free services, the company has recently begun offering two freemium plans- one priced at 999 INR and the other at 1,999 INR.