Online real estate rental startup NoBroker is in the market to raise funds. The Bengaluru-based company is in talks with a number of new and existing investors to raise $ 80 million to $ 100 million, say two Trickypedia Sources. This happens after a year and a half of the company’s last fundraising drive.
“NoBroker is in mid-range discussions with new and existing investors to raise up to $ 100 million in a new round,” said one of the sources who requested anonymity. “The company is likely valued at over $ 750 million this round.”
Of course, the terms of the contract can change.
“General Atlantic, Tiger Global and two new investors will contribute more than 80% of the round, while other existing investors will participate proportionally,” said a second source, who also refused to be named. “NoBroker Pay is one of the key anchors for this fundraiser,” added the person.
Incidentally, NoBroker Pay proved to be an important source of revenue for the company in the financial year to the end of 2020. It contributed approximately 38%, or Rs.23.8 billion, to the company’s total operating revenue in FY20. NoBroker Pay was launched at the end of fiscal 2019 and enables tenants to pay their monthly rents to landlords using UPI and credit cards.
Inquiries to NoBroker have not generated a response at the time of this writing. We will update as soon as you reply.
NoBroker is also one of the startups that quickly adapted to the new normal during the pandemic last year and expanded their platform with services accordingly. For example, the company added new services like painting and cleaning services to increase the wallet share of users once they found a home.
“They came up with a lot of different services – one was where people who wanted to rent an apartment didn’t have to physically go and see the house. NoBroker would make sure that someone would go and give them a virtual tour of the house, ”said an investor in the room, asking for anonymity. “That worked very well because people were skeptical about visiting multiple houses during the pandemic.”
More recently, NoBroker has launched a neighborhood super app for residential complexes through its subsidiary NoBrokerHood, in which residents can open a shop and sell products via the mobile application. Most recently, in the 2020 financial year, the company made a series of investments with a $ 29 million General Atlantic investment in April 2020.
NoBroker’s did not submit its financial data for Fiscal Year 21, but did, as it did recently, in Fiscal Year 20 reported from Trickypedia, the company recorded a sales increase of 250% in FY20 compared to FY19. Assuming similar dynamics continued during the pandemic, NoBroker’s upcoming financial statements could also reflect growing numbers.