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Ladies and gentlemen, good day and welcome to Aurum PropTech Limited Q2 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 LLP. Thank you and over to you, ma'am.
Thank you, Nirav. Welcome to the Aurum PropTech Limited Q2 FY '23 earnings call. It gives me great pleasure to welcome the management of the company represented by Mr. Onkar Shetye, Executive Director of Aurum PropTech Limited; Mr. Hiren Kumar Ladva, EVP, Investment of Aurum PropTech Limited; and Mr. Kunal Karan, CFO 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 viewed in conjunction that the risks we face, uncertainties and risks are included, but not limited to what we have mentioned in the prospectus 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. Onkar. Over to you, Onkar.
Thank you, Asha. I'm glad to connect again to the investors community in this sixth quarterly call under Aurum management. Welcome everyone and thank you for your continued interest and commitment to Aurum PropTech. We are living through a generational shift in our economy and society. According to us at Aurum, digital technology is the most important resource at the world's disposal to overcome constraints at any [ stage ] in our daily life in terms of work and family. We believe that the convergence of the digital and physical worlds is happening at a rapid pace. Let me first briefly talk about some of the events that have happened in this quarter in our economic landscape. Our Honorary Prime Minister recently stated new India will not remain a mere consumer of technology, but India will play an active role in the development and implementation of that technology.
The first generation technology services are expected to unleash new economic opportunities and societal benefits serving as a transformational force for the Indian society. We are at the forefront of innovation becoming the third largest start-up ecosystem with 60,000 start-ups and getting close to 100 homegrown unicomms. Our industry leaders are now confident about India becoming a USD 30 trillion economy before 2050. At Aurum, our resolve to accelerate the adoption of technology in the real estate sector to increase business efficiency and enhance consumer experience is at the forefront of our daily activities. The real estate sector is poised to be a USD 1 trillion economy by 2030. Technology adoptions in real estate businesses and consumer behavior of millennials and Gen-Z shall make proptech a USD 100 billion sector. Our mission is to revolutionize real estate with digital transformation enhancing transparency and building trust in all steps of the real estate value chain.
We are on the path to delivering an integrated proptech ecosystem for real estate on the tech platform. Aurum PropTech's 4 business clusters; namely invested finance, enterprise efficiency, customer experience and connected living; cater to the real estate value chain and have products and solutions built with SaaS and RaaS business revenues. For the quarter, we continued our focus on building businesses in acquired proptech products and solutions and our in-house products and solutions. We now have 10 active products and solutions, which have started to generate revenue. We have also established our operations in 15 cities with a team size of 500-plus people working in tech development, operations, data science and innovation. Our consolidated revenue has grown by 93.3% over the last quarter to INR 28.3 crores.
We reiterate that we communicated in our last quarterly call as our first pit stop, we are gearing to achieve our targeted revenue of INR 50 crore by the fourth quarter taking our revenue to ARR of INR 200 crore. Let me now briefly talk about our partner companies and their roles in the 4 business clusters. In the investment finance cluster Integrow Asset Management, a RaaS product, completed its first data-driven lending in form of an EIS. It has also applied for a PMS license to further build on democratizing real estate investments for a larger audience of investors. Our enterprise efficiency product Sell. Do, a SaaS product, continues to be the market leader in the real estate space in India with relationships across 600 real estate developers across the country. BeyondWalls, a RaaS product in the enterprise efficiency cluster, offering broker aggregation solutions for the real estate industry has achieved a 5% market share in its launch market Pune and is a market leader in the primary residential sale market in Pune.
In the connected living segment cluster HelloWorld, a RaaS solution, has achieved market leadership in student living segment of Kota City. It continues to be a major player in rental markets of Bangalore, Pune and NCR. TheHouseMonk continued to build its SaaS business in Southeast Asian markets catering to 47 rental property owners and manages almost 60,000 tenant experiences worldwide. Today, the platform processes $6.9 million worth of rental revenues per quarter. While our acquired products and solutions accelerated their business, we have also continued to build proptech products and solutions in the customer experience segment organically. AurumInfinity, the factual ownership platform for real estate, has completed its second MVP stage and is presently in regulatory and compliance clearing stage. After taking legal opinions, we have narrowed down on the AI model of fractionalizing real estate.
Aurum InstaHome targeted at the residential retail market has completed its first MVP and is presently in the proof of stage concept -- proof-of-concept stage. Aurum KuberX, a loan origination platform, has completed its first MVP and has facilitated INR 80 crores of financing commissions for home buyers. We continue to build AurumLiv, a one-stop transaction platform for real estate, along with our data facts products and solutions. All our proptech businesses continue to be built on a 3-tier layer of discovery, fulfillment and data science. In addition to the businesses built, we continue to put our efforts in these digital like artificial intelligence, machine learning and blockchain. Products like Aurum Sound Emotion Analyzer that predicts buyer sentiment by detecting emotional sentiment, targeted specific key words, predicting purchasers sound modulation and the likelihood of buyer making a purchase decision using state-of-the-art intelligence models.
We are leveraging technology, automation of processes and the current wave of digital adoption in creating India's first real estate technology ecosystem. Let me now briefly talk about our governance risk and compliance framework. At Aurum, we have always focused on implementing a strong GRC framework. A key strategy to our business is implementing the best practices around governance, mitigation, office and ensuring compliances. All our investments and in-house product developments are starting to be governed through GRC. This framework has been essential in deciding the behavior of intellectual, human, social, brand, ecosystem and financial capital for us. I will now like to talk about activities in terms of contributing towards social needs at large. We believe that society is our key stakeholder and we focus to deliver through our foundation Aurum Neev.
We have completed the Aurum Neev Service Fortnight initiative last month and our Ikigai as a facetious driven company is deeply followed by every member of our team. It is anchored by 6 core pillars; preplantations, green design, nutritious meals, safe manhours, girls education and medical intervention. 120-plus Aurum members came together for the Aurum Neev Service Fortnight initiative and contributed to planting 10,000 trees serving 10,000 meals with [indiscernible] facilitating 1 lakh safe manhours, helping 1,000 workers upskill, contributing towards 100 student years, donating 1 ambulance, 1 life-saving ventilator and 100 units of blood. I would like to conclude by saying that our businesses are built with an eye for profitable growth rolled with strong governance and compliance practices creating value for all stakeholders of Aurum PropTech.
I would now like to hand over to Hiren, EVP Investments, to talk about our journey of investments.
Thank you, Onkar. Good afternoon, everyone, and sincere gratitude for your continued interest and participation in our journey. As you all know, technological advances are driving phenomenal innovations in every aspect of our life and hence, everything today has tech attached to it including real estate. At Aurum PropTech, we firmly believe in our vision of unlocking the potential of real estate sector through technology. Our philosophy for investments and acquisitions in PropTech that was aimed at the potential to build an ecosystem of tech-enabled ventures across 4 focus areas, which is invest and finance, enterprise efficiency, customer experience and connected living. Having started the PropTech journey in July 2021, the company has strategically acquired 5 ventures in proptech space within a year as part of its inorganic strategy. Through these investments, we believe that we will grow in strength quarter-on-quarter and year-on-year.
Efficient capital allocation, working closely with our partner companies, smartly rolling out our in-house products and solutions, continuously strengthening our teams, focusing on revenue growth, strong governance and being customer offices are a few mantras that have kept us leading in past and will continue to be our focus in future. These ventures have already started collaborating on strategic, operational and most importantly, tech focused areas. Tiered under a quarterly program called Aurum Entrepreneurs Forum, specific initiatives on growth, branding, technology and centralized support solutions are underway with tangible benefits of the ecosystem already visible to Aurum PropTech and its partner companies. We have recently rolled out our Aurum Entrepreneur-In-Residence initiative to increase our entrepreneurial and managerial bandwidth. We will track this closely in the upcoming quarters as this is a unique program, one of its kind. We have and we will continue to build and grow our SaaS and RaaS products and ventures in this exciting journey.
I would now like to hand over to Kunal, CFO of Aurum PropTech, to talk about the financial performance of the company.
Thank you, Hiren. Thank you, everyone, for joining this call today. The Board of Directors today have approved the results for the quarter ended September 30, 2022. I will take this opportunity to take you through some of the numbers of this quarter. Our consolidated revenues from operations for the quarter has increased by 93.3% to INR 28.3 crores as compared to INR 14.64 crores in the previous quarter. The revenue from operations were INR 8 lakh in the corresponding quarter of the previous year. During the current quarter, we have consolidated the operations of HelloWorld Technologies Private Limited, a 100% subsidiary which we have acquired on June 17, 2022.
The consolidation of HelloWorld for the full quarter have contributed higher revenue in the quarter as compared to the previous quarter. We have made revenue ARR of INR 100 plus crores at the end of the current quarter and is in a position to improve it further in quarters to come. Our total income for the quarter has increased by 96.2% to INR 30.8 crores as compared to INR 15.7 crores in the previous quarter. EBITDA losses for the current quarter were lower at INR 3.42 crores as compared to INR 5.69 crore in the preceding quarter underlying an improvement in cost performance. The consolidated cash position at the end of the quarter was INR 118 crore as compared to INR 102 crore at the end of March 31, 2022.
I will now pass on the call to the operator to open the floor for question-and-answer session. Thank you very much and appreciate your continued interest.
[Operator Instructions] The first question is from the line of [ Darshil Jhaveri ] from Crown Capital Partners.
Am I audible?
Yes, you are.
Congratulations on an amazing set of numbers and hope we can see further growth. So I just wanted to ask so that now our revenue has been ramping up so could we have some sense on what our cost side would be? So at INR 50 crores revenue per quarter, would be breaking even or what kind of sense do we see in the fixed cost investments and like where do we see our cost going forward maybe if not this year, maybe FY '24 will we be breaking even on EBITDA and PAT? Could some sense be given on that?
To answer the question directly, INR 50 crores of revenue in quarter 4 will not break even because though EBITDA margins improved from the current position as has been indicated in quarter 2, but definitely we'll be not PBT positive at INR 50 crores of revenue level because many of the businesses are still in a growth model and these are people intensive business that cost of IT resources are going up as the -- so retaining people and those things are definitely a challenge and cost will definitely be there. But maybe in next financial year when we have a complete full financial year with all the acquisitions -- current acquisitions, that time we can definitely expect a positive.
Mr. Jhaveri, thank you so much for your question. In addition to what Kunalji stated, we have 2 nature of products, SaaS and RaaS, both built on tech platforms. And fundamentally the businesses and the products have -- products and solutions have 20% to 30% of margin. However, considering that most of these products are being deployed into new markets, we are adding new features into these products. There is active GTM happening. The initial few quarters will not be -- I would say we will not be able to break even in the initial few quarters until the time we built a substantial quantum of the business. However, we are building each product line, each solution set, each business with an eye for profitability and try to achieve break even at the earliest and go to positive margins.
Okay. I'm sorry, I could not get the part about whether -- so in FY '24 we might not even -- not at PAT level, but maybe at EBITDA level we would be seeing break even or something or maybe that would come in FY '25? I don't want an exact thing, but just a general idea of where are we seeing or where are we projecting?
FY '24 EBITDA level will be we are expecting to break even.
Okay. And in terms of -- so are all the acquisitions so the revenues have been consolidated and they will be -- everything has been done so from now onwards, the revenue that we are getting will be taking care of all the new acquisitions, correct? So new revenue will be taking everything into account, right?
Yes. So all the acquisitions that we have done and now consolidated so that if you have seen today's results, which we have published, that acquisition that we have declared in May has been just closed in October 15 so that is being consolidated. So that will come to consolidation in the next quarter starting from October 15. So that is other company that will get consolidated in the next quarter. Okay. That answers most of my questions. Thank you and all the best. Looking forward to great numbers.
[Operator Instructions] The next question is from line of [ Vipul Aurora], individual investor.
So my question is bit different about the challenges. What I found is Aurum from the last 20 years being in the real estate sector and they are very good at it around the real estate and property sector. But at the same time when we compare with NoBroker and other proptech companies, they are more into tech stacks. So now Aurum has shifted towards real estate to tech, do you people found any of the issues and challenges to be as a tech people and face these challenges and how was the experience? I just want to know from you guys.
Mr. Aurora, a very astute observation of the sector and thank you for following our real estate vertical as well. We'd like to say that our real estate experience of the last decade has given us substantial understanding of this domain, which is itself complex in nature and which assimilates into our thought of building this ecosystem into 4 different segments with each segment requiring its own application of tech. Yes, companies like NoBroker have started with the platform of tech. But if you see our model of building Aurum PropTech in the last 1 year, we have applied our real estate domain experience in going and acquiring partner companies with founders who have got a strong tech background and tech experience.
The 5 to 7 acquisitions that we have been able to conclude and the 10-odd products that we've been able to add in the last 4 quarters are all led by tech founders and have all been operating in the tech or the proptech space from 2 years to 10 to 12 years of horizon. So it's a great assimilation of relative domain experience and also a tech founders experience that comes with the proptech companies and that itself differentiates us from only pure tech companies. At the end of it, a business is built on -- any tech business is built on application of tech into the industry and it requires substantial industry knowledge for any tech to be deployed.
So do you find any difficulty, I know Aurum has a great foundation because you people are dealing with the complexities around real estate. So now earlier you people are building, now it is on the tech system. Don't you feel incomfortably -- not uncomfortable, but kind of challenges? There are a couple of people who are experienced in the tech as well. So definitely, there were some roadblocks in the going forward as well.
Yes. So we take your observation and we will keep a keen eye on it. But basically the learning that a tech entrepreneur will go through about the industry purely from a tech perspective will be, I would say, negated or will be subtracted with our experience of understanding that industry. So he will not be going -- or the techie will not go through as many challenges and as many learnings as they go on to build on products because there will be a substantial domain experience coming into building tech.
All right. And my second question is so recently past you've been acquired many companies. When there are a couple of good mind people, it's very hard to take them and build on a single route because like-minded people are never settled easily. It's my experience. So how you will manage that kind of founders in a single pillar of foundations because it's very hard sometimes to manage the people?
Let me take that. This is Hiren here. So the way we interact and coordinate with partner companies is that one, there are a few layers in terms of our interaction with them, which we have also dwelt upon in the previous calls which is one, we have a review and cadence which gets kind of set up from the very first day of acquisition or investment followed by different forums of interactions with them, which includes the entrepreneur forum wherein there is an exchange of ideas and collaboration as well as kind of a networking within the smaller ecosystem that we are building.
On the operational side of it or as well as on the strategic side of it, we as a proptech continue to maintain just the oversight and the strategic view of it, right? The day-to-day operations, the founders continue to manage them against a well-laid out business plan, which we monitor on a monthly, quarterly and annual basis, right? So in that sense and as you could imagine of the 5 companies that or the ventures that we have, one is based out of Pune, a couple of them are based out of Bangalore, one is based out of Mumbai itself and one, the recent post is based out of Noida. So operationally these founders are independently driving their own respective ventures in the strategic path that we have initially agreed with them at the time of our investment.
All right. And one last thing is a few days back I got an update like now CareerSocially is not being a part of Aurum. Is it a right statement?
I'm not sure where you heard that from. But yes, we have concluded the acquisition of CareerSocially 100% in the month of -- in this particular month itself so they are fully onboarded. We can confirm that.
Okay. And just a last small suggestion. People like us small investors sometimes don't have that kind of interaction with management. So it would be good if you people can invite like a small investor community once in a year so that we can get interacted with you people and get more about the company.
Noted, we'll try our level best to incorporate your suggestion.
[Operator Instructions] The next question is from the line of [ Ajinkya ] from Metabox Equity.
My question is in the aftermath of Ukraine war and the global scenario has disrupted a lot so how the business strategy for our company has changed prior to the war and post the war?
Mr. Ajinkya, thank you so much for your question. It is a very usual observation. Global scenarios do impact most economies and most businesses. However, we are of the strong opinion that India domestic consumption led story of the real estate market led by 2 factors: urbanization growth, growth of urban population in India; and secondly, changing consumer behavior backed by digital adoption. These 2 pivots itself are good enough to us to meet -- to sustain and build this business with a longer horizon. Yes, there will be challenges from a macroeconomic perspective in the short term. But in the long term the real estate story is strong and the tech adoption story in real estate industry is strong as well and we are absolutely pleased about it.
Okay, sir. And also there is a appreciation in the upcoming period and the U.K. economy is suffering from it. So most of the IT sector industry and the real estate is also suffering from it. So how are your companies planning for that?
So Mr. Ajinkya, the macro picture, yes, it has its own implications on multiple sectors. And in the interim, as Onkar was suggesting, we have not witnessed immediate impacts on the real estate sector overall immediately, but we are keeping a close watch specifically on the buy-sell transaction part of the real estate sector overall. Having said that, I would want to emphasize that as far as our company is concerned and as far as the overall real estate sector is also concerned. Beyond buy-sell transactions, there is a rental economy in place, there is a SaaS economy in place, right; which are subparts of the real estate sector. And if you look at our investments, they are not limited to the buy-sell transactions and buy-sell transactions could be possibly the most immediately impacted. The quantum of impact is yet to be seen and that could be the most immediately impacted, but the rental economy will continue.
The SaaS and the services economy around simply living inside the house and all the services inside the house, right, so that will continue. So some of our portfolio companies are beyond supporting the buy-sell transactions and hence we get that bit of cushion, if you will, against the headwinds or the macroeconomic shocks that would arise. I would not comment too much on the macroeconomic scenario because we are hearing multiple and varied opinions specifically about the Indian economy per se. For example our currency has been doing better than a lot of other currencies. As Onkar mentioned, our economy is driven by the domestic consumption, the investments into the nontraditional assets which is also an indication of the amount of income and the savings that the economy has. That is also an indicator of how slightly decoupled we are from the external markets. But yes, we will keep our eyes and ears open and take whatever strategic steps that we may need to ensure our business continuity remains.
Next question is from the line of Mukesh Kothari, individual investor.
In one of the announcements you had made some time back, you said that you have decided not to invest further in one of the acquisitions that you have made earlier. So just want to understand how do you evaluate all these investments that you have made and why further investment is not being contemplated for the acquisition that you have made? And basically how do you evaluate these? Do you write these off or what is your accounting policy in this?
So Mr. Mukesh, probably the line was not clear, but there were 2, 3 questions you asked. One was -- and please correct me if our understanding was right. One, broadly you are seeking to understand our investment strategy now that we have made the 5 investments. Is that the right understanding of your question?
No. In one of the investments that you had made earlier, you said that publicly that you won't invest further in that company in one of the acquisitions that you made, I'm specifically asking about that acquisition.
So Mr. Mukesh, there are 2 stages typically to any investments that we go at. One is that in principally, we run this through a very extensive buy framework where we understand the opportunity, which can be built upon and then want to take the investment decision. There are instances where we have evaluated the businesses and found major risks in those businesses either with the team or with the operational metrics or with the scalability of the tech stack and in such cases we have prudently taken a call in the best interest of the organization that we don't go ahead with these. So we are very conservative when it comes to investments into any businesses even if they are principally agreed to before we go on to sign on the dotted line and execute the share purchase agreement. I hope we have been able to answer that.
Yes, I understand that. What I'm trying to understand is what is your accounting policy where you decide not to invest further and let that business -- I mean you don't take any interest on that business. I mean there was an investment sometime back, right, in this regard in one of the acquisitions that you made.
I will try to answer your question. I just understand that you are saying that when we consider an investment in the financial segment directly as a subsidiary and then as an associate. So as per the accounting guidelines, you can do a consolidation as a subsidiary where we take the line-by-line -- costs and then we take the revenue...
No, I'm not talking about the accounting part of it. Okay. Let me get back to you specifically on this question at the later date. I'm not able to explain it clearly. My second question was basically on -- last time around I had suggested that we can actually create the value chain -- end-to-end value chain and see what is the gaps that are there that we are not present to basically understand the addressable market. Like one of your listed competitors is P.E. Analytics, which is into specifically providing tech solutions around to banking companies -- housing finance companies. Are you present in that segment as well?
Before we answer the question, we would like to clarify. There's a little lag or there's any unclarity in the network or the line. But we'll just clarify the question is that you were asking about the addressable market, one in the proptech segment. Is that correct? And there are 2 housing finance companies who have announced funds and are we in that space? Is that the correct assessment?
No, no. When I was -- basically what I was trying to understand is basically the gap in the whole proptech value chain and whether are you in the same business as P.E. Analytics is? There's a listed company called P.E. Analytics, which specifically provides tech solutions to housing finance companies. I mean are you in a similar business as...
So again in the interest of time, let me rephrase so that we are on the same page. First question is about the overall proptech value chain and identification of the investable opportunities and you would want to understand our thoughts or our investment strategy around that? Is that the first question?
Right, right.
Fair enough. So I think we have -- I'll let me address that first and come to the second part. Yes, as we have called out and repeatedly articulated, our strategy is that we have mapped the entire value chain within the real estate ecosystem. Within that, we have arrived at the 4 focus areas which being invest in finance, connected living, enterprise efficiency and customer experience. Now within each of these 4, there are specific use cases or customer experience led thoughts which gives us a direction to look for not only potential investment opportunities, but also in-house development of products, right? So that's why the customer first focus comes in, right? Now I hope I was able to address that. At the moment we may not be able to follow up the specific opportunities that we are in discussion with, but there's 4 focus areas and within that, the identified use cases is the direction that we kind of stay adhered to to make any investments.
Yes, I get that. I mean I understand the more broad verticals. What I'm trying to understand is I mean there are areas like for example a company called P.E. Analytics, which is into providing solutions to housing finance companies. So are you also in a similar business is what I'm trying to understand.
So at the moment, we are not providing any services to housing financing services from a tech point of view and hence specific to your question, that's what I could comment right now.
Okay. I mean that's what I was coming from that there are gaps which your competitors are actually providing, but you're not.
So there are for housing finance companies, we don't have a B2B solution. That has not been our focus area of developing a product in that space. But housing finance itself is a problem statement. The value chain of raising funds for purchase of a real estate asset is a problem statement, which we are attempting to solve, but more from a customer experience point of view not as a service to a housing finance company. There we have data-driven recommendation uses, which evaluate various underwriting instruments of housing finance companies and recommend the right housing finance product to the consumers and further go on to fulfill that fund raise for that consumer. So that's one product area that we are focusing on. It is for Aurum KuberX, but it's not a B2B-focused solution. It is a B2C or a consumer-led product or solution. I hope we've been able to decently answer your questions. Unfortunately, there's a little unclarity in the line, hence we were not able to get all of your questions correctly.
Do you have any follow-up question? The line for the participant dropped. The next question is from the line of [ Darshil Jhaveri ] from Crown Capital Partners.
So I just wanted to understand our broad vision right now. So we're currently in investing phase where we've made 10 products and where we are trying to focus on our prime areas. So I just wanted to briefly if you could just explain where do we see this journey going in maybe the next 3 years or something where you want to add more products, you're looking for further acquisitions and just a broad kind of a flavor of where we -- what is our vision right now? Maybe FY '24 we're again in the investing phase and then we have our complete set of product and value chain. So could you just possibly briefly explain that?
Sure. In the 4 broadly segments, we have tried to pin down problem statements and gone on to identify products and solutions in each of the problem statement and further gone on to either buy or sell those other businesses or products that are addressing those problem statements. We have identified a list of around 15-odd problem statements ranging from investment finance to connected living and on those, 10 of the products and solutions have already been either acquired and are into revenue already and some of them are being built. So that's the direct I would say answer to the problem statements that we saw.
In addition to it, we also keep on innovating and investing in deep tech, which is the real I would say game changer in any tech-driven disruption in the industry. And that is where our innovation team works on, on identifying what all products can be brought on that are not just addressing a problem statement, but are actually going to create a disruption in that particular space or focus area. So that's typically our clear horizon. The identified 10 -- the 10 products that have gone into revenue, we will further now go deeper into these products to build businesses in multiple geographies within India and further go on to address market penetration in the achievable markets in each of these geographies across India.
Okay. So could you -- so we are still looking for some more investments and so we have I think around INR 80 crores of cash line. So that would be -- that's what we'll be probably be using for further acquisitions, correct?
So you are right with the cash available. But not the entire amount will go for acquisition so we will need money for the working capital and our product development and some of the money has been already committed to the investments that we have already made. But money will also go as a growth capital to those companies. So entire money is definitely not available for new investment.
Okay. So basically I was coming from whether to enhance to build up the products, will we need to raise funds again or would our current rates suffice? That was where I was coming from.
So raising fund is not a same question right now because we have there's a rights issue that all money seem to be made so around INR 235 crores is still to be called in the right issue. So as and when required, as you said that if we find some good target or the money is required so that time we will go for that right issue. But right now there is no plan for that.
[Operator Instructions] Next question is from the line of Manish Shah, individual investor.
My question is relating to your product of CRM and broker aggregation tech for real estate. I just want to understand how does it work? Because I myself have invested in 3 real estate tech companies. So what does this product actually do broker aggregation tech for real estate? CRM portion I understand actually.
Thank you for your question. I'll actually invite Mr. Hiren Ladva to answer this. He's been monitoring BeyondWalls closely.
Sure. So Mr. Manish, since Sell.Do is the CRM, which you already understand about. I will not dwell too much into it. But BeyondWalls is the broker aggregation platform that under VK22 investment that we have made, we have launched it in Pune. Within 6 months of launching, they've been able to get more than 3,000 channel partners or brokers on to the platform. This network provides a sales acceleration tool for the developer community to monetize and sell their inventory into the market, right? So that's basically providing the link between the developer and the channel partners is what the tool is about.
Okay. So right now all these things happen so a group of brokers can sell a particular project. That's what the whole point is and all communication happens through the software.
So if you look at it from a broker point of view when they see the BeyondWalls app, when they get registered on that, they get access to a good set of properties that they can sell to their potential buyers and not only get access to those projects and be compensated for the entire value chain right from site visit all the way to the transition. But in the process they get a lot of assisted services on the platform in the form of sales enablement, which they themselves would not be digitally capable of, right; which includes digital brochures, which includes their own portfolio creation on the platform. So it's a completely digital tool that's available to the brokers to make their sales and make -- to provide a better buying experience to their direct customers, which is potential buyers.
Okay. So what is our revenue model there? Our revenue model is like NRR, which we take a particular portion of the brokerage or do we give that as a SaaS software as a software service or we take some cut in the brokerage or there is some revenue sharing agreement which is there? Let's assume the builder grew 3% and we keep 0.5% or 1%, the channel partner takes 2%. So what's our revenue model?
So there are various plans that the brokers can opt and I would encourage you also and to seek your suggestions, please have a look at the app. There are various plans available that the broker can choose which are -- and as I said, the entire sales cycle and the support that we render through the app in that cycle, there are ways to monetize that, right? So we would encourage you to have a look at those. As I said, there are various plans available both on variable basis as well as fixed fees basis.
Okay. And opening remarks was about entrepreneurs. So I think this is a new concept which is there. And so how does this work and how many entrepreneurs you have?
Yes. So this program has been just recently launched wherein our aim is to -- we have multiple aims with that. One is since we're looking at the value chain and the various problem statements that Onkar mentioned we want to solve and the in-house products that we are trying to build, we need really bright minds who understand real estate, who understand technology, to come and partner with us and take these products to the market, build these products in-house and then own the entire customer gen. In the process we are meeting very bright candidates who have spent valuable time in their own entrepreneurial journey. We are also inviting entrepreneurs who can bring in their own ideas as well, right? So as we speak, we have evaluated close to 100 applications already when once after we have soft launched it on LinkedIn itself as a platform. So we have met a few bright candidates and we hope to close a few EIR positions at the earliest.
So you will be funding their ideas actually?
We are looking at multiple options not just funding their ideas. Primarily our idea is somebody who can bring entrepreneurial hands to bring those ideas or take those ideas to the market and also the model you mentioned. So entrepreneurship is about ownership giving flexibility and the support that the business leader needs to kind of translate the dream or the idea into reality, right? So that's what the aim of the platform is.
Okay. Final question. Actually in the real estate space, one is obviously the builder space, which is they do all acquisition of land, construct the whole thing and then they sell it, okay? And second is all these industries related to it, but that's cement and all but we will not go. And second is the brokerage part. The main thing is money is transactional side of the whole chain. So are we looking at entering into the transaction side of the -- where we do brokerage for on behalf of buyers or sellers and all or that is something which is too competitive and we are just ignoring it actually?
So you are right around the varied estimates of how the real estate market gets broken up and we feel that around anywhere between 60% to 70% of the real estate market is related to the buy-sell transactions. And within that, there are various business models available, some very basic and hence getting challenged with or disrupted with technology coming in and that's where we see an opportunity. And to answer your question, we have not left that sector untouched. Through the company called K2V2, the first service that we started playing was to give the enterprise efficiency angle to the developers to manage the sale of their inventory, which is precisely buy-sell transactions of new projects, right? So that's what this particular SaaS product helps the developer. So that was our first entry or right to play in the market. K2V2 then went on to develop more products after we invested in them in the form of BeyondWalls, which is also further enabling the buy-sell journey through various means.
We just dwelt on the brokerage side of it and as part of their services, they also provide our digital marketing services to developers again to offload or monetize the inventory, right? So that's an area where we are already playing. Our in-house product, let's say, on the financing part, on the Aurum Infinity part; Onkar touched upon this; are all products which have a right to play in the entire buy-sell transaction journey. So yes, there are, as I said, multiple use cases and as Onkar said. multiple problem statements within this, which we are trying to solve. It's not just one simple transaction. Buy or purchase of a real estate property that too a residential property is a highly intensive purchase for any customer and hence there are multiple plays available, multiple problems to be solved and that to with technology. So there's a huge scope of adding value to the sector.
Yes. And post buying a property, even a bigger problem arises when you make the furniture of the house. So that's an even bigger problem than the property side. Exploring that because the current tech models have not done a good job. If you see the Google complaint or ratings of Livspace or HomeLane or many such start-ups, the solution has not been satisfactory to the market needs actually. So have you explored that space also?
Yes. So in fact while we touched upon only the buy-sell part, our mapping of the entire value chain of the real estate not only starts from the buy-sell, but it goes on to, as you rightly said, moving in which means interior designs, decoration, interior decorations. But beyond that, it goes on to living inside the house, maintaining the house, the rental part of it comes once the property has been acquired. So when you logically kind of map out the property purchase, the residential property per se and the use cases around it right from its development as a project all the way to somebody moving in and then letting it out, right? So there are various stages and yes, we have identified a few problem statements that we would want to solve and prioritize it, right? So we would not want to spread ourselves too thin and work on multiple areas.
Manish, may I request you to come back in the question queue for a follow-up question. The next question is from the line of Nitin, individual investor.
I was very interested in your student housing and your co-living operations. You run the entire thing or you provide the software for it?
So as far as HelloWorld, I assume that's the business you are referring to. In fact in co-living, we have 2 businesses. One is HelloWorld, which is a completely operations enabled heavily through technology in terms of right from customer acquisition all the way to the living experience that we provide, the service management of the base of the properties or the units that we serve to the tenants, right? So that's the first business. From a chronology of acquisitions, that is the second in the co-living segment.
The first was the house comp, right, which is a complete SaaS and to your question, yes, that's a complete tech that gets provided to owners of multi-living properties. And that market though is fast evolving and developing within India in the form of co-living operators themselves being the primary customer. But outside India; specifically U.S., Europe, Middle East, a bit of Southeast Asia; there are multi-living properties who require software or SaaS solution to help them manage the tenants not just from as basic as rental management, but all the way to service management, customer experience, community engagement, et cetera. And so that's where TheHouseMonk as a product plays a role.
Because when you look at an Oyo and things like Zostel and all, they're still not profitable on the unit economics side. And the problem that you're trying to solve is actually a very old problem, right, it's always been difficult to get a whole house together. But something has obviously changed why these things are looking viable now versus earlier. Is it just affordability or what is the larger change, which is what we're trying to capitalize on.
No, I think we believe and when we invested in HelloWorld, we went through the entire analysis of the industry per se and looked at various models present and if you watch this space closely with HelloWorld that we have invested and we compare HelloWorld with rest of the competition. So I cannot comment on specific numbers, but we are very close to EBITDA positivity as far as HelloWorld is concerned at the same revenue base that the Top 3 co-living operators in the country are. And that's where the answer or the solution to the puzzle lies that yes, it's very much a profitable business. It's very much a problem to solve especially for the young generation in the bracket of 18 to 25 or 28 years who are away from their homes, living alone, working or just started working.
And as far as the student living is concerned, they are also just away from their home, studying in some university, needing a quality residential environment which bolsters their independence, which gives them the flexibility as well as the comfort of a home, right? So that problem remains to be solved pan India and there is a viable solution and that's what we see in the form of HelloWorld. As we see with HelloWorld, there are at least 2 cities where we are market leaders and we wish to remain, in fact consolidate our leadership position in the co-living segment in the years to come.
Sir, are there any REITs which are actively investing in student housing and co-living as of now in India?
I'm sorry, are there any...?
REITs who are looking at picking this up and again selling it out to investors as of now?
Won't be able to comment on specifics, but I think yes. Co-living space and the projects and from a build-to-suit point of view, yes, that's a developing space as we speak right now, right? So the quality of supply and hence the interest levels of REITs would both be something which we should look forward to in the coming years.
It's a very mature space, Mr. Nitin, in the U.S. markets. Co-living as a segment is well understood there and there are larger brands. We will not take names on the call. They understand the space very well in terms of the propcos and opcos. This business is -- Aurum PropTech is looking at this business from 2 perspectives. One is tech expertise in discovery and management of tenant experiences and the operational expertise in terms of process-driven operations of the building. And that is how we want to make sure that we are creating a good bouquet of projects -- products -- sorry, bouquet of assets that are offered to occupants for rental living and of course the ones who have a larger asset becomes an interesting situation for global players to look at it.
So one last question, if I may rather just comment. What I noticed in the U.S. now was the amount of labor that you needed to run a space was much lower because they have so many machines per se. And in India it's very labor centric, right? So the model will still be labor centric or you'll be putting in as many machines and gadgetry as you have in the U.S. and stuff like that?
As of now servicing the co-living units per se, we have yet to kind of deploy robotics because as you rightly pointed out, it's the cost of capital versus cost of labor kind of balancing that we need to do. But at the same time, there is also a human element to the service. So the answer will lie somewhere in between. And then as of now, yes, we are looking at this particular problem in a different way in the form of -- from a customer-centric point of view leading it by the customer experience and standardizing the customer experience across all our properties, which gives any potential tenant the comfort that if you go to a HelloWorld property, these are things that you would definitely be comfortable and assured of, right?
So in that direction are all efforts of improving operations, bringing in efficiencies, et cetera, are evolving. From a tech point of view, yes, as I said, the community engagement part of it, the customer service part of it, simple things like logging tickets, enabling digital payments, right? So those are things that we are actively working and some of these services are already kind of already being offered.
I now hand the conference over to the management for closing comments.
We thank all investors and the investor community to have shown continued interest in this sector segment and more importantly Aurum PropTech. It's an ever-growing space, exponentially rising and we would like you to please keep a keen eye on the developments. We are passionately building this to the benefit of all the stakeholders, industry and investors likewise. And from all of us, a very Happy Diwali. We wish you all you and your families the very best. Have a great Diwali and a prosperous [ New Year ]. Thank you so much.
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.