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Ladies and gentlemen, good day, and welcome to Aurum PropTech Limited Q1 FY '23 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Ms. Asha Gupta, Investor Relations EY. Thank you, and over to you, ma'am.
Thank you, [indiscernible]. Welcome to the Aurum PropTech Limited Q1 FY '23 Earnings Call. It gives me great pleasure to welcome the management of the company represented by Mr. Ashish Deora, Founder and CEO of Aurum Ventures; Mr. Srirang Athalye, President of Aurum Ventures and Director of Aurum PropTech Limited; Mr. Onkar Shetye, Executive Director of Aurum PropTech Limited; Mr. Kunal Karan, CFO of Aurum PropTech Limited; Mr. Hiren Kumar Ladva, CVP, Investment of Aurum PropTech Limited.
Before we start the call, I would like to remind you that anything that has been mentioned in the call, which reflects any outlook for the future or which can be construed as forward-looking statements must be due in the financials that the risk resale, and these risks and uncertainties are included, but not limited to what we have mentioned in the prospectus of the filed with SEBI and subsequent annual report, you can find it on our website.
With that said, I now hand over the call to Mr. Ashish. Over to you, Ashish.
Thank you, Asha. So I'm pleased to talk to the investor community in this fifth quarterly call under Aurum management.
I'm glad to state that within a period of 13 months, Aurum has given a new purpose and management to Majesco, which, of course, is now Aurum PropTech. Aurum's shareholding and Aurum PropTech has resolved from acquiring promoter stake of around 14% to 50-odd percent upon successful completion of rights issue in this quarter.
As a group at Aurum, we have always focused on value creation through governance for all our stakeholders, including our customers, capital allocator, society at large and our team. We believe that we are on the same path at Aurum PropTech here as well.
I would like to briefly talk about real estate and PropTech as a sector, which is going through one of its best phase into my mind. We believe that these tailwinds that the sector is facing currently will continue for multiple years to come.
I have tried to articulate this earlier as well that real estate is expected to grow to become $1 trillion economy -- $1 trillion sector by 2032, and PropTech -- PropTech adoption within that will have 10% market share, making it to be a $100 billion sector. At Aurum PropTech, we are amongst the first movers in this sector and we believe that it will grow in strength quarter-on-quarter, year-on-year.
I'll briefly touch upon the comparative journey of PropTech with FinTech. 2 years ago, it was difficult to comprehend that finance would be experienced through technology. FinTech led behavioral change and had unprecedented growth. We believe that real estate being a similar asset class like finance, is moving in the same direction. We see trends of PropTech as a sector, emerging in a similar growth trajectory as FinTech sector.
Our belief is that PropTech companies will help bring transparency, efficiency and seamless experience to this sector, creating multiple homegrown unicorns in the near future. As far as this quarter is concerned, I would like to share our excitement with all of you as this is a landmark quarter for us.
We have grown significantly in this quarter and expect similar growth rate for next quarter. We are gearing up to achieve our targeted revenue of INR 50 crores by fourth quarter of this year as our very first [indiscernible].
Efficient capital allocation, working closely with our investee companies, smartly rolling out our in-house products and solutions, continuously strengthening our teams, focusing on revenue growth, strong governance and [indiscernible] are few mantras that have [indiscernible] and will continue to be our focus in future in order to fuel the integrated PropTech ecosystem that we are creating.
I will now like to hand over to Kunal, our CFO, to talk about financial performance of the company. Thank you very much.
Thank you, everyone, for joining this call. Yesterday, the Board has approved the results for the quarter ended June 30, 2022. I will take this opportunity to take you through some of the numbers of this quarter.
Our revenue from [indiscernible] the quarter has increased by 79% to INR 1,464 lakhs as compared to INR 818 lakhs in the previous quarter. The company had no revenue from operations in the corresponding quarter of the previous year.
The growth in revenue is mainly attributable to performance of all our subsidiaries performing better under the umbrella of Aurum PropTech. We are hopeful for a similar growth percentage of revenue performance in Q2 also. Revenue from both our SaaS and RaaS businesses have been -- have seen growth in the current quarter as compared to the previous quarter.
Our total income for the quarter has increased by 64% to INR 1,572 lakhs as compared to INR 959 lakhs in the previous quarter. We had a negative EBITDA for the quarter at INR 569 lakhs as compared to negative INR 622 lakhs in the previous quarter.
Now I will hand over the call to Mr. Onkar Shetye, Executive Director of Aurum PropTech to elaborate more on journey of our product and services. Over to Onkar.
Thank you, Kunal. Welcome, everyone, and thank you for your continued interest and commitment to Aurum PropTech.
Talking about Aurum PropTech. Our focus area for PropTech are 4 business segments, invest in finance, enterprise efficiency, customer experience and connected living that shadow the real estate value chain.
We continue to build SaaS and RaaS products and businesses with a mix of inorganic and organic strategy. As a part of our inorganic strategy, we have acquired and consolidated 4 companies over the past 13 months. The product portfolio now includes real estate CRM, sell.do and broker aggregation platform BeyondWalls, that target the real estate purchase value chain, and rental management platform, TheHouseMonk and co-living company, HelloWorld, that focuses the rental real estate value chain.
Sell.do continues to provide PropTech solutions in the enterprise efficiency segment. We have acquired K2V2, their ARR from -- when we acquired K2V2 their ARR from sell.do was INR 13 crores. Post acquisition, we have added a new product, BeyondWalls and fine-tuned their business model, which has effectively raised their ARR to INR 40 crores.
BeyondWalls was launched in Pune and has been able to secure a 3% market share of the primary residential transaction business. With this, we have now launched BeyondWalls in Mumbai and Bangalore, and we expect the ARR to grow with these additions.
TheHouseMonk has kept with its rental management solution and is at an ARR of INR 3.29 crores with a gross transaction value of INR 1,278 crores. We are evaluating various possibilities of leveraging this product for the rental industry.
The latest addition to the inorganic product line, HelloWorld, a co-living company, provides a solution for the first instance of any consumer real estate consumption journey. HelloWorld has an ARR of INR 56 crores, with presence across 15 cities. We believe that HelloWorld will soon become market leader in at least 3 of these 15 cities under Aurum management.
The focus of the team now is to closely work on management of all these companies and at the same time, launch our products and solutions, which are built in-house. Our tech teams have built 2 unique products, Aurum Liv, our real estate transaction platform and Aurum Infinity, our real estate fractional ownership platform.
Aurum Infinity shall be launched in Q2, and Aurum Liv will be launched in Q3. A key strategy to our business is governance, risk and compliance framework. All our investments and in-house developments are starting to be covered through GRC. This framework has been essential in deciding the behavior of capital, human resource, sustainability and intellectual rights. The progress through this framework is starting to be closely monitored by management representatives of Aurum PropTech to ensure best governance practices in the group.
I would like to conclude by saying that our businesses are built with an eye for profitable growth, rolled with strong governance, risk and compliance practices, creating value for all stakeholders of Aurum PropTech. I will now pass on the call to the operator to open the floor for questions and answers. Thank you very much, and we appreciate your continued interest in Aurum PropTech Limited.
[Operator Instructions] First question is from the line of [indiscernible] Associates.
My question is, we have acquired around -- we have done 4 or 5 acquisitions. So how is the integration of this coupled with -- how is the integration? And total, how many number of employees on the consolidated basis?
And sir, we have changed the name from Majesco to Aurum. And we've changed the website also and e-mail ID also or everything we've changed. But on the BSE website, our industry segment comes under that old software company, that's the information and technology. And earlier also written, but I think nothing has been done from your side to get it changed.
And -- another question is when are we looking for call money rights issue? That's all I have.
I have taken note of 4 questions. Let me start by answering the first question, which is integration of these 4 acquired companies. One is the acquisition of these 4 companies has been scanned through a lot of due diligence where we get primary importance on acquiring mature companies with established products, processes and businesses in the PropTech segment.
To make sure that these companies are integrated into our ecosystem and also our governed with the right flavor, we have a comprehensive governance, risk and compliance framework that is implemented across all these companies in addition to our company. This includes various aspects of people, processes, compliance, regulatory framework, taxation and also product and planned integration as the umbrella brand, Aurum PropTech.
There are now 550 employees put together between these 4 companies, spread in 15 cities with major presence in Pune, Mumbai, Bangalore and Delhi.
With respect to the second -- third question, the name has changed from Majesco Limited to Aurum PropTech. The segment remains the same. We are a technology company, and information technology and software remains to be our business. The sector that we provide this solution and service to is real estate.
With respect to the call money information, I will hand it over to Mr. Kunal Karan, CFO of the company.
Look, regarding the call money, our plan definitely is to [indiscernible] the money that we are having in hand right now, which is around -- which is more than INR 100 crores. And we also have some assets in form of buildings, which we either take from Majesco.
So monetizing of those assets is our second priority. And then we like to go for the next tranche of the call money. So to answer you, we are not -- we don't have any plan to call for the next round at least till the end of March '23.
The next question is from the line of Faisal Hawa from H.G. Hawa And Co.
Can you hear me?
Yes, sir, we can hear you now.
So there was a blockchain-based solution which we were attempting to really solve the problem of financing as well as to have these smaller units, which could be in turn leased out or rented out as form of smaller deals. So where do we stand on that? Have you been able to track that software or the product?
Thank you for your question, Faisal. The blockchain-based fractional ownership platform as a technology product has been tracked and has been developed. There are 2 MVPs in which we are -- we have developed this and are rolling it out.
The first MVP is rolled out as the listing platform for commercial real estate where assets that want to be fractionalized and further tokenized are listed on the platform. And the second MVP is then -- there are investor dashboard where the investor can actually manage the portfolio of these investments or ownership is to be [indiscernible].
There is another layer of regulation and taxation that our team is working out to close out presently, which is with respect to if this coming under the SEBI regulation? What is the taxation structure when we are looking at various forms of fractionalization and what is the framework or what is the guidance from the investment for that we need to take approval under?
So this is the current status of the development. I'll also hand it over to Mr. Hiren Ladva, to add further details.
Thank you, Faisal, for your continued interest in the company and valuable questions over the time. And this particular technology is something that we feel is -- is this something that could transform investment and democratize investments into real estate sector, and we are looking eagerly to develop our capabilities in that from a tech point of view as Onkar has already elaborated, we are nearly there in terms of our readiness to take the product to the market.
We want to be very cautious in terms of how we get the regulation and taxation before we launch the product into the market. That's where this product right now is.
I might to believe that the product is ready, but we are worried about the regulations and who our regulator will be itself and whether this is allowed even?
Yes. So actually, if we see in the market, there are a few ways and means in which other models have come into fractional ownership. What we want to do is, yes, not only be on the right side of the regulation, but also have a scalable model at the same time. Right now, you might be compliant with regulation, but then the model might not be scalable. If you do a scalable, then the regulation clarity is not there. We are not saying people are not abiding by the regulation, but the clarity is not there. And that's why we want the regulatory authorities to help us and clarify in terms of how this would be dealt both in terms of taxation as well as how we treat the financial instrument that is behind this.
So we acquired a company, which was into advisory into Tier-2, Tier-3 [indiscernible] we were looking at acquiring large stakes in these companies. How is that company doing? And out of the INR 15 crore revenue that we have made for the quarter, which of the 4 companies that we acquired has contributed most to it? And I mean, which of these [indiscernible] in the next 2 years at least will contribute most to revenue?
And what do you see could be the revenue of our company in '23 [indiscernible] you to any figure around, I mean, without even asking because I've been forward, but what -- on current run rate, do you think that we will be able to grow sequentially also quarter-on-quarter?
Yes. This is Kunal. So I will just answer your first part of the question that which subsidiary is contributing how much. So right now, around...
Refer to the subsidiaries by name also because we have generally followed the acquisitions 1 by 1 and...
I will just give the breakup. So the K2V2, which was our first acquisition gave around INR 9.8 crores out of the INR 14.64 crores that we have declared now. Then HelloWorld, which actually has been constituted only for 15 days for the quarter because we could complete the acquisition on 15th of June. So it has given INR 2.34 crores out of the INR 14.64 crores. Then TheHouseMonk, which we occurred at the beginning of March '22 has given around INR 80 lakhs.
What did you say the name of the company?
TheHouseMonk. That Singapore entity that we acquired in March 2022.
So that's INR 80 lakhs.
Yes.
But that, I think we have acquired only mainly for the product rather than revenue.
Yes, it's a pure product company.
Okay. And this is fourth company, sir, which has contributed?
So balance is our internal accruals from our [indiscernible] business, which has given around INR 1.2 crores.
So this HelloWorld would be like...
Yes. So you can consider HelloWorld to be almost equivalent or more than K2V2.
But is this some seasonal which is coming is INR 2.34 crore or...
No, no. It's not seasonal. It's a seasonal, in the sense, INR 2.34 crores has come only for 15 days. Because INR 2.34 crores is from 15th of June till 30th of June because we have acquired only -- we could complete that acquisition on the 15th.
Would I be right in making a conclusion for the next quarter, it will contribute almost like INR 15 crores revenue itself on its own?
You can derive it.
Okay. Perfect. Okay. And which of these companies is burning cash most out of the 4?
Out of the 4, I think Aurum PropTech will be burning because it has got this product expense, which our in-house product expense, we are not capitalizing. We are charging it to the income statement. And K2V2 has 1 product, which is still in the development stage. So that is also burning some cash. So these 2 will definitely continue to burn some cash in the next 2 quarters also.
And have we added any marquee developers like top 10, like a [indiscernible] Godrej or any of these companies are a client?
Yes, Faisal. Both K2V2 and also the newly announced acquisition CareerSocially cater to the top most developers in the country right from Shapoorji Pallonj to Mahindra to Hiranandani, Tata and so on, the list is really elaborate and large.
And in fact, they serve various micro markets like from Delhi to Mumbai to Pune to Bangalore. So that's really the aspect across the country.
Which company is catering to these developers? I missed the names, sir, I'm so sorry.
K2V2 and CareerSocially both combined. So K2V2 is the Pune-based company that we have acquired, and CS is the new acquisition that we had announced last quarter, between both these, they cater to a Tier-1 and Tier-2 developers, both.
And sir, we had acquired 1 company, it was in the youth housing and college going students. Is there any progress in that coming to [indiscernible] sector.
We have acquired the completed acquisition of 1 company in the co-living segment, which does cater to the student housing solution, which is HelloWorld. There was another company that we had looked at, however, we found certain questions in their model, and we are still evaluating this further.
And sir, that you'll be evaluating another 4 to 5 deals, and we would probably acquire another 3 companies going forward?
So the strategy was a mix of inorganic and organic. Last year, we focused on building this inorganically where the idea was to cover the buy, sell and the rent side. And in both, we have got products and businesses, so tech products and teams and solutions.
This year, we are going to really focus on consolidating this, integrating this and rolling out our own products in both the segments.
And sir, about the revenue.
Yes, sorry -- Onkar having looked at the acquisitions that also we have made, we are in actually discussions with them to actually deep dive and grow our market presence and customer presence much deeper. And then we'll be actually focusing on much higher growth from these investments for the next 1 or 2 quarters.
And sir, if you could give some kind of what the revenue figures for '23 could look like -- would look like?
As of now, we will not be able to give any committed or any numbers or any forecast on that. Having said that, we have talked about the annual run rate that we have. For example, we were -- if you look at March 31, we were at around INR 95 crores of annual run rate from a revenue run rate point of view.
Within the 3 months of the first quarter of financial year 2023 we have taken that number to almost INR 130 crores now, right? So this is like-to-like comparison across different acquisitions as well as in-house products that we have. So that total that we can talk about right now.
You mean to say, this is run rate for '23 is INR 130 crores for the entire year?
No, this is a revenue run rate as on June 30, multiplied by 12. So that's the revenue run rate that we are talking about of the invested companies as well as our in-house products that we have.
So when we revenue, you have multiplied by 12, so that is coming to around INR 120 crores a ballpark -- approximately.
Yes, yes. Having said that, just to clarify, that is not the revenue guidance because that's just 7-year run rate.
You have just multiplied the -- we are assuming that no growth happens in this during the year, at least.
I didn't get the last part.
So in case if your run rate growth first 3 months the same run rate will continue further the growth percentage may not be more. So it is still a good growth 30% also.
Yes. The way we say it that fundamentally, our businesses have grown in this manner is what we are trying to call out here. We leave it to your analysts and intelligence to see how that can go over the next few quarters. But we are committed to growing the same pace as what we are trying to call out here.
And I mean this -- I mean can you just elaborate more on how this co-living space is being looked at? And what is our vision for it? Because I don't know the way organization is moving in India. So this could be like a -- with this plan, I think to my mind, has not been attacked enough by anybody. So to actually break the profit model for it.
Yes. So that's a very fair observation, Faisal ji. Actually, this is a segment which has probably taken a back seat because of the lockdown initiated an aggression back to the towns, but now that offices have started opening, people have started coming back to offices and staying away from their homes. So one, the rental economy in itself has been growing. Within that, the younger generation, right, which is just out of the campuses till the next 6 to 7 years of work -- work life and a bit of student community, which stays in educational hubs, right?
So those are the key segments, which has started coming back to -- coming back to their -- or rather going away from their home and staying in rented living. So that gives us opportunity in 2 major segments, which is the student leaving segment and the young generation, which is staying in the co-living segment.
And predominantly, this co-living segment, we are seeing very active in metro cities like Bangalore, in Pune, in Mumbai as well as NCR and other towns like other cities, metros like Hyderabad and Chennai.
Now if you see where we have invested, we have invested in a company which is very focused on staying profitable, very selective about the kind of supply that we have very focused on getting high occupancy rates and hence, growing at a very profitable way.
HelloWorld, which is the company that we acquired was generating an annual run rate of INR 38 crores on 31st March this year. As we speak, their monthly run rate, our monthly revenue is around INR 4.5 crores amounting to around INR 56-odd crores of annual run rate, with just within a span of 3 months have gone there.
Our strategy to your question about how do we want to build this further? HelloWorld present in 15 cities right now. We intend to be a market leader in 3 or 4 of the critical cities that we want to play in, right? And that's the -- that's one of the strategies, and we would achieve that by supply acquisition by focusing on the customer experience, the calling experience both for the student as well as the young working population in the Gen Z segment, right?
So that's on a 2-pronged basis, both on the demand side as well as the supply side, we have our strategy well allowed there. And so that would help us grow there.
This is Ashish here, and I'm glad that you have already been a asking us very, very pertinent question. And your questions are getting more and in terms of interesting even more in terms of interest, and we are very happy for that.
But I truly believe that you actually in a very difficult problem. And with it down what looks like the right team members and I mean cost for taking on something which is so difficult. I don't know lot of people have attempted this, but no 1 has done a 360 degrees on it.
[Operator Instructions] The next question is from the line of Deepak Poddar from Sapphire Capital Partners.
Sir, I just wanted to understand, you did mention that by fourth quarter, we are looking at INR 50 crores of revenue target. Am I correct? Is that on a quarterly basis that we are kind of targeting?
So I will pass on to Kunal to detail this out. But yes, the point that we are trying to make here is that -- as a first pick stop, our internal target is to get to monthly -- sorry, quarterly revenue run rate at INR 50 crores by Q4. And that is where we are gearing up all our internal products, our services, solutions and investee companies to do that.
If you see the current growth and the kind of tailwinds that we are seeing in the existing quarter as well. That is where we are aiming to take the company. That is where we are targeting to take the company as a first target and a first pick up. Kunal, would you please?
Look, as you understand all the we are acquiring a few companies and those companies will come into this calculation umbrella over a period of time. Like I said, the seller, we could just consolidate only for 15 days this quarter, then definitely it will come for the full quarter going ahead.
And similarly, if we can close another 1 in between the second and third, so that those companies will start again contributing on a purpose, this is over the period and that our target as we said, that will be around INR 50 crores at the end of the fourth quarter. That is what our internal target is.
Okay. so that is largely driven by inorganic growth, right?
Yes. So while the inorganic thing comes and as canteen answer, I don't know whether we could catch that one. Our own products will go live also at the end of the quarter 2. And again, another 1 at the end of quarter 3. So the things those products will also start contributing on percentage around 12% to 13% of the total.
So that also will definitely try it will contribute more internally and contribute to the number in total.
Okay. So that's Aurum Live and Aurum Infinity, right? That the 2 products that is expected to be launched in second quarter and third quarter?
Yes.
Okay. Okay. But initially, we don't expect much contribution from these products, right, because since it's a new product.
Look, initially, it will take at least 2 quarters to pick up the revenue because both the businesses are all new as compared to our acquisitions where the businesses are happening at least for the last 3 years minimum, this business will be totally new, and it will be a start of the operations.
Fair enough. And on the cost side, I think currently, I think we are doing a revenue of, I think, last quarter about INR 14 crores, INR 15 crores on that operating profit was minus INR 6 crores. So ideally, our expenses was close to about INR 20 crores, INR 21 crores a quarter, right?
Yes.
So how that we expect to shape up going forward? How will our cost escalation will happen?
Out of this INR 20 crores or INR 21 crores, INR 10 crores is our manpower cost which according to me will not grow because all the annual increments and everything has come up. So at least till March, we do not see much addition to the cost in terms of our existing manpower plus the addition of manpower also is more or less leased or as per planned.
And it feel a very marginal increase over there. Then the other cost definitely will vary proportionately to the revenue to some extent because some of the costs are directly proportional to the revenue. So you can consider 50% of the cost to be constant and the balance 50% to move based on the resi.
So out of this 20% to INR 20 crores cost, 50% employee costs will largely remain constant, whereas that other cost 50% will be proportional to your revenue, right?
It is not directly proportional, but it will go up marginally as compared to as our revenue grows.
Okay. Okay. Okay, I understand so at what revenue level do we see our P&L breaking even? I mean, either at the director level or at the pace.
So this is Ashish [indiscernible]. We are very conscious of growing but not losing cash for this growth that has recently been the trend over the last 2 or 3 years with new age companies, with net companies where growth is led by losses and not the other way around. If you see right from the very big thing, we have been very, very conservative in ensuring that the cash burn is not at all tolerated by the company.
Going further, it's very difficult to say what quarter we will become EBITDA positive. But definitely, I can say there is a keen eye on growing with profitability and not just growing mindlessly. We are very, very conservative about that. to another 1 point of year where Kunal was talking about our organic products.
I think the way I look at this is year 1 was about focusing more on creating the company around inorganic strategy. And we did acquire the fabulous companies, we took some strategic stake in these companies. This gave us a very good understanding of how the market is, what the market is. And in this year, too, we are in a very kind of focusing more and more internal, we are focusing more and more organic.
We know what to build, how to build, why to build. So you will see a lot of development happening on in-house products in this next, I would say, 4 to 6 quarters. This year will be about revenue from what we have done in year 1, which is invested companies. But in the next quarter, this percentage will keep changing where organic products, the in-house products and services will start contributing more and more. Although we think that the inorganic products, which are through the invest companies are also our product itself.
[Operator Instructions] The next question is from the line of [indiscernible].
Yes. I -- in the opening remarks, I heard about the total addressable market to be -- quite a huge figure. I just want to understand what is your sense of obtainable market and what is attainable market and obtainable market. See, given that India is largely unorganized at this stage, I think the figure that you referred is quite huge.
And I mean even a 1% market share in that would be quite good, but I think that is not totally obtainable, what do you think about that? And what is the basis of the 10% of the real estate market to be a total addressable market?
Very question here. The sector is usually unorganized. And it's always difficult to find the right data point to get the total addressable market. Although we look at the sector as pan India, Tier 1 cities, you have close to 6 cities where major -- most of the major inventory sale -- primary and secondary happens.
The total size of the real estate industry is proposed to go $1 trillion by 2030 as per our report published by IBEF. And this will be -- and the real estate industry itself will be contributing some 13% to the entire GDP.
If you look at the residential real estate market, there is a report published by Knight Frank, which talked about 250,000 units launched in the country on the supply side and close to like 240,000 units launched in -- sold in the country on the demand side, majorly in Mumbai, Pune, NCR, Bangalore, Chennai and Hyderabad.
We talked about the Beyond Walls, our broker aggregation tech platform, which has been launched in Pune. In Pune, 40,500 units were launched last year. And around 38,000 units were sold last year, both in primary and secondary real estate. Of which with the broker aggregation tech that has been rolled out Beyond Walls has been able to sell close to 12% to 15% of the market share on its platform through the broken aggregation tech. And basis of that now, we are now launching in other cities. So yes, it is a large market, total addressable market to be looked at. So that's from the primary and secondary real estate from a buy-sell side.
The rental living industry is also a large industry. We will give you 1 small example of a student living community in Kota. In Kota, there are 2 lakh students that come every year for various preparations for entrance exams, admissions, et cetera.
And the 2 lakh students end up staying in our rental living or a co-living premise, which has a potential of INR 1,500 crores of annual revenue just in 1 market. And then we can imagine the size of Bangalore and other cities. And there are various reports published on that side also.
In Kota, what has happened is BeyondWalls -- sorry, HelloWorld, the co-living company that we have acquired -- they have captured a 4% market share. And with only a 4% market share, they are a market leader there.
And the potential to be disrupted is immense large. So this is how we are taking 1 step at a time, 1 city at a time, 1 micro market at a time, and then we are expanding to other cities to make sure that other TAMs are also serviced and obtained and attested by us.
Okay. I understand that. I mean, the numbers that you go off, I understand that. But see, in the whole value chain, the prop tech demand or the share of the PropTech services would be quite minuscule, right?
If you look at -- we always...
Even if you take across the 4 segments that you're talking about. So if you are -- I mean, pre sales year for sales and fewer , I mean, post sales and renting. So if I just look at 2 segments of the 4 business sectors, if I segregate them into B2B and B2C, I mean, their dynamics are totally different, right?
I mean, B2B would have onetime acquisition costs, B2C would have recurring acquisition costs. B2B's right time value will be quite high, B2C's right time value will be quite low. So I'm just trying to understand how did you -- what is your total.
This is a very complex industry with multiple and across these 4 business segments. But what PropTech really does is, it allows you to make sure that any real estate asset through its entire value chain, right from investment finance where you are, for the first time, seeking a wholesale investment and acquiring a property to further going on to build that property and then monetize that property to further going on to hand over the property, live in that property, right?
You are able to service the same real estate to consumers on our integrated platform, which allows you to double -- single to double it triples your business model on that same real estate, right? So for -- so when you start with the investment finance segment, you come in with a wholesale or a retail fashion of mesh investment model, where there's an opportunity to get around 2% to 5% of the investment size.
Then further you want to fill that real estate asset on the transaction platform, again, you on a passivity size of 2% to 6%. Further, you want to service that consumer who's staying in that real estate, again, giving you an opportunity to dip into that real estate asset. So that's on the asset side journey.
On the consumption side journey also you are able to take care of the customer at the fourth instance of consumption when you are taking care of his first usage in the form of student living. And once you have that, then you're able to -- once you have given them a taste of your consumer experience, that has then further crystallized on your tech platform that you are able to join that and that customer for multiple products probably for his rental living requirement, for his primary -- first apartment field requirement for a secondary apartment field requirement and so on and so forth.
Okay. Fine. I mean, I understand it's a very complex and disaggregated segment we are looking at. There have been attempts in the past, I mean by other players in terms of getting into service apartments, getting into reverse mortgage and even the co-living space. But it's really very difficult to crack. So how do you intend to get -- I mean, I have a unified you say business model, which will enable you to crack these segments?
So think tech actually has ability to a bank the asset and then service it to multiple this and bank the customer and then spread it through multiple trials. That is -- that has got a 10% market share in the U.S. economy. If we let -- if we do the right things and if you are able to extrapolate that here, with a $1 trillion economy India, you we feel that the PropTech size will be at a 10% -- 10% will be a $10 billion.
And there, we believe that there will only be 3 or 4 established players who are running the right prices for the business, having the right products that are servicing both the demand and supply side. So that's how we are seeing this industry as. And that is why the segmentation in these 4 segments, and that's how we are building our products and services around it.
Fine. Just a couple of suggestions. One is like in whatever the presentation or press that you're making, if you can just classify the whole real estate value chain and what parts of that divested value chain you are trying to add flavor of tech and then offering solutions, that would be great. Because there are too many segments and I mean the specific gaps that you're looking to fill. If you can highlight that, it will be great.
We will definitely centration in the investor presentation, how the real estate value chain is falling from investment to construction sales on the enterprise side to purchase to utilization to resell to services around that on the consumption side. And these are 2 segments that we have factored in, invest in finance, enterprise efficiency, customer experience and connected living that's how we have mapped the entire estate and an into.
Okay. Yes. And the second question is on the fractional ownership. I mean, within the framework of the current laws -- what is it that is possible? And what is it that is stopping you? Because the cars are never built in anticipation of growth being built. So I mean, if you are able to highlight what are the impact because it is a big segment to crack.
It is definitely a big segment. And as earlier mentioned that we need to get -- build it in a way that it is scalable. The present form of fractional ownership allows investments in the form of financial instruments to INR 1 crore or in the form of equity -- in the form of INR 25 lakhs.
If you look at pure form of fractional ownership, which is real estate ownership, you can definitely have a lesser amount of investment size. But all these 3 models need to be really scalable and appeal to a larger retail audience. where the investment size is reaching out to a retail audience and also that helps you increase the velocity of investments and also makes the entire model there will be only a limited pool of investors who will attract a INR 25 lakh investment and be only a limited pool of investors who will be attracted to a INR 1 crore investment.
But when you look at a larger or a smaller ticket size, which is governed with the right regulations, then we are looking at a completely scalable model. And our tech build is from that angle. The technology and the platform is being built from that angle.
Our go-to-market will be with the available regulations at hand. So we might start with what is available under the EIF instrument. We also will look at the equity structures, which are presently available orders. And then further once we have clarity on the regulations, we will look at smaller ticket sizes.
Okay. Do you think that right would be a competitor for this fractional ownership kind of sector. From an investor's point of view, just limiting your addressable market?
There -- so REIT is definitely evolved and a mature model. REIT, however, is a controlled model presently. A, time to come out with a public REIT has a gestation time of around 3 to 5 years. You have to do a private REIT first and then we have to get a public REIT, which means that the asset size that will come on to the REIT market will have its own gestation time.
Second is that the investor is not able to control the asset that is purchasing into because retail is a combination of multiple real estate assets combined into 1 pool, right, where you get a blended return of the yields from the multiple assets. Whereas the fatal form of ownership will make sure that you are able to control the asset that you are investing into. That's 1 key differentiator between both models.
Okay. One final question. Who do you think are your competitors? And how different you are from them across all these 4 segments?
I think the PropTech industry in India has evolved quite a bit in the last 2 years. We have seen investments between 2018 to 2020, there was $1.5 billion of investment that has flown in. In 2021, $750-odd million of investment has flown in. Some key players in the market are now announced in the private space as Unicorn. No broker, for example, is taking care of the rental industry. They have been on that space -- lift space who's looking at the furniture on the industries at this space.
Then there are also companies like 99Acres and Housing.com who have been in this space for a long time. But these are also classified. One key differentiator between all these companies and ours is that everyone has -- so everyone has a single business model. We are only looking at the listing space or a classified space or rental industry or the space, where our objective is to build and integrate it suite for the enterprises and also for the consumer.
And that is what increases our TAM. That is what increases our ability to dip into the TAM multiple times with multiple customers with the same asset.
[Operator Instructions] The next question is from the line of [indiscernible] Management Limited.
I had a question that we had acquired 2 buildings from Majesco Limited. So how well have we normalized that?
So we have not acquired actually the buildings are in the book from Majesco Limited. So we have just got it. So when we -- the current management got it, both the buildings were vacant, 1 was under progress -- construction was under progress. So we clearly had just completed the construction of the building. We have got that OC and everything is that building is still unoccupied.
The other -- the bigger building was on unoccupied at the beginning of the current financial year -- sorry, the current calendar year in January. So as on date 40% of the building is already put on rent. And maybe by the end of this fiscal year, 100% of it will be occupied.
Add to Kunal, when we acquired Majesco Limited, these buildings came in as a part of the acquisition. -- these buildings were -- so like you said, the first building was already there. It was being utilized for their own consumption of their teams the earlier teams that were sitting out of that space and the other building was under construction.
We have -- after we acquired it, we worked out a path to monetization because Aurum PropTech Limited is clearly an asset-light model where we don't intend to keep asset-heavy structure. We don't intend to keep assets in our portfolio.
And towards that model, we have gone on to at least earlier the first building, 75% of the leasing is complete now with some marquee names in the building. There is a financial -- there are 2 financial institutions, 1 a national bank and 1 financial institution that has taken space, which covers up to 60-odd percent.
There's another balance 15% leased out to another -- we will make sure that by the next quarter, we have some visibility on the balance leasing. And then the asset is that for monetization including the old asset, which is pre-leased and a new asset, which has just got constructed. So that gives -- that also adds to the liquidity of the company, which can be further deployed for the PropTech business and group. I hope we have been able to answer that question.
[Operator Instructions] As there are no further questions, I now hand the conference over to the management for closing comments.
We thank you all for your continued interest in Aurum PropTech. We intend to build a very robust integrated ecosystem for the real estate industry. And as a part of that, we have made sure that all the right moves have been done in the last year, and we further intend to consolidate and build on this further.
We will look forward to hear from you and build this further together with you.
Thank you very much. On behalf of Aurum PropTech Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.