NoBroker, A Bangalore-based startup that helps those looking to rent or buy an apartment connect directly with the owners has extended its previous funding round by $ 30 million.
General Atlantic has invested $ 30 million in the NoBroker Series D round, which the startup launched last October. The round, which has now ended at $ 80 million, increases the previous five-year NoBroker's increase to $ 151 million, the startup's founders told theinformationsuperhighway.
NoBroker helps people who want to buy or lease an apartment to avoid brokers who charge a substantial fee. The startup has expanded to six new cities in the past three months (now serving a total of a dozen cities) and expanded to new categories, including gate keeping, moving and packaging, helping tenants secure home loans and formulating agreements between tenants and Real estate owner and fulfillment of furniture and other decoration needs.
The most remarkable thing about this fundraiser is of course the timing. In a joint interview with theinformationsuperhighway, NoBroker founders Amit Kumar Agarwal, Akhil Gupta and Saurabh Garg said the investment was a "confirmation" of the belief that General Atlantic, its largest investor, sees in the startup. The new capital will also give NoBroker enough runway, they said.
Several prominent investors in India have warned startups that they may face additional challenges in raising fresh capital as they enter the “worst” times.
The founders of NoBroker admitted that market demand had weakened, but hoped that it would recover after schools reopened, causing tens of thousands of families to move to different cities each year.
New Delhi ordered a nationwide 21-day ban last month, which has since been extended until May 3, restricting people's movements and closing schools, shopping centers, theaters and other public places.
"Our plan is to add more properties to the platform and serve more customers," said Kumar, who serves as managing director of NoBroker. "We also want to expand our other services to become a complete solution for all tenant needs and to maintain the market leadership position," he said.
These new categories also enable NoBroker to charge a 10 to 20% cut on the leads it generates. One of the areas the startup has expanded to is company management, which helps people keep a log of visitors and get their approval, enter the premises and stay connected.
This service was provided by over 2,000 companies with more than 500,000 inhabitants. NoBroker also recently partnered with BigBasket to help with the delivery of food.
"NoBroker Pay, NoBroker Hood, NoBroker Home Services and some such innovations deepen the engagement of owners, tenants, buyers and residents of the community. The platform makes it a goal that goes beyond the core offering of rental and sales transactions," he said Shantanu Rastogi, General Atlantic General Manager, in a statement.
NoBroker has registered more than 3.5 million properties on its platform and served more than 8.5 million individuals.