There are dozen of internet and cell platforms in presenting real property solutions. But all of them are focusing on the quantity commercial enterprise where end clients are the focal point of enterprise. In order to create greater fee to their target audience, these portals regularly ignore the center layer of dealers, brokers and property consultants, by using taking over the position of a marketplace.
These portals turn out to be yet another labeled for real estate. Vikram Dhawan, the then a senior manager in actual estate company, observed an opportunity in this hole and launched IndianRealtyExchange (IRX), a platform for brokers and agents along side Karan Jindal, a management graduate from Indian School of Business (ISB) who changed into running with SVG Media before he cease to begin his venture. At SVG, he changed into already handling startups and e-trade companies.
Vikram had dropped out from college to paintings for living and build something of his own. He labored with brokerage and real estate houses which gave him an amazing information of each the worlds. Karan and Vikram, complimented bringing expertise of starting off and the actual-property marketplace.
‘Just like our inventory exchanges, where thousand of investors/agents are worried, I desired to create a platform or an alternate, which empowers the brokers to shop for/ sell and transact in a continuing and obvious way, where the broking will be the facilitator, the magnet. Today, actual estate marketplace is a unorganized and this will become our opportunity,” said Vikram.
For Delhi-based totally IRX, the target market are the 50 lakh stakeholders worried in actual property commercial enterprise, various from small brokers with $one hundred fifty-$450 deal cost to set up agents concerned in large homes with approx deal well worth $ 15,000. At present, IRX has over 1500 brokers from across six cities specifically, Mumbai, Gurgaon, Delhi, Chennai, Hyderabad, Bangalore andKolkata. It has over 2300 cellular application downloads, 24,000 verified houses and 3000 leads at the platform. On a median, over 20 new agents check in each day and over a hundred residences are indexed.
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IRX works as an trade platform, and has a listing of homes like houses, land, plot, areas to be had for buy, and a listing of agents to be had to offer assist attain the belongings builder or land owner. Every registered broking on IRX, has a profile in the database, with information of his portfolio, prior deals, his knowledge areas and more.
While the platform continues to be in the development stage and from next month it's going to start enabling interactions on the platform. People should book plots and sites, just like web page buy of a top class rental well worth INR 1.1 Cr, made on Snapdeal in August 2014.
The Business Model
In terms of marketplace positioning, IRX is trying to fall someplace among a Practo in fact space with its list and database of agents. Before Practo became the call it's miles these days, it created a big database of docs which acted as a pull-thing, bringing patron to its software.
Though IRX is trying to put itself as an exchange by means of shifting away from the typical marketplace idea, it nonetheless works on market version in which typical transaction is lead technology and lead validation. Another differentiation that not like Housing.Com, brokers do not should pay to return onboard and get listed on IRX.
On IRX, a dealer can list his portfolio, get leads or even get a margin for changing the leads all free of charge. For IRX that is just the bait to maintain them engaged and construct marketplace credibility due to the fact the startup is extra interested by the larger transactions.
The startup plans to earn sales from the developers and builders who would pay for list their assets on the platform. In next three – 4 years, IRX plans to convey over 50 builders on board. Apart from the listing fee, IRX will price a hefty margin on each deal cracked at the platform. It may want to make upto 50% margin from a deal which may be really worth $15000. These offers might be unique to the startup and as a consequence fetching a great chew of sales. These transactions might encompass agriculture tasks, farmland, commercial land and greater.
According to a file released with the aid of property consultancy, Knight Frank India, round 192,568 residential properties are mendacity in inventory in National Capital Region (NCR), which provides up to approximately 14 quarters to promote (QTS), while Mumbai falls second in line with 12 QTS, accompanied through Hyderabad, Pune, Chennai and Bangalore. The ordinary actual estate market is expected to the touch $180 Bn via 2020 from $93.8 Bn market size in 2014. This gives opportunity to developers to explore more recent methods of clearing off their stock.
Competitive panorama and Challenges
For IRX, technology has been the largest hurdle and therefore it's far now building its in-residence crew of builders to enhance the technology piece.
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Furthermore, on this over-crowded and unorganized market, IRX is attempting to convey value for the agents, however they are now not on my own in the sport. Apart from the existing biggies like Makaan.Com, Indiaproperty.Com, Housing.Com, Commonfloor.Com and more.
At least three startups have emerged in real estate brokerage space with mild distinction inside the business models, along with Mumbai–based Oku Tech (BroEx), SmartAgentConnect and Gurgaon-based Plabro, and these kinds of 3 these days were given funded.
On the alternative hand, there startups like Nobroker, which might be looking to remove this middle layer connecting the customer immediately with vendor.
While IRX is seeking out raising fund, its rival gamers BroEx and SmartAgentConnect have raised round $1 Mn from Lightspeed Venture and $700k from angels respectively.
Editor’s Note
With declining sales and rising stock inside the actual estate residences, IRX has entered the market on the very right time with the right cost proposition. However, it isn't just about the concept, but execution. The startup has an extended way to head before it sees the blueprint shaping into fact, but it's far only a begin.
