The Bengaluru-based residential prop-tech firm, YourOwnRoom has recently raised $1.3 million in a seed funding round. A cohort of investors that include the US-based firm, Lotus Capital, Narasimha Murthy, Co-founder of the US-based health-tech firm, Ravi Chaturvedi, Former President of P&G and other profile angel investors based out of Bengaluru and US have invested in the funding round.
The proptech firm offers strategically located co-living and family homes to millennials tenants that are comfortable and at the same time, safe.
According to a recent JLL report, Shared Residential Rental Market is $4.6 billion with a Co-living penetration of only 2.3 per cent and will be $14 billion by 2023 with an 8.3 per cent co-living penetration. Co-living is seen as a hope to the distressed property owners and developers who are struggling with declining sales, unsold and unused property stockpile up (12 million) and the need to look at means to get higher rental yields of 5 per cent to 10 per cent. YourOwnROOM is eyeing for a larger share of the pie and considers Nestaway, Zolo, Colive, Stanza, and Oyo as its key competitors, as cited in the company’s statement.
Ravi Chaturvedi, Mentor and Angel Investor, Former President of P&G said, "The residential rental market in metros is highly fragmented, unorganized and, frankly, not dedicated to delighting the customer on the demand side. The people who rent out their assets worry about the property's security and sustained returns. YourOwnROOM's mission is to consistently deliver a delightful customer experience to the renter and build a trusted relationship with the homeowners, thus creating great value for all stakeholders.”
“This, for me, is a great recipe for building a sustainable and differentiated business in a cluttered space," Chaturvedi added.
YourOwnROOM, which is a residential prop-tech rental and prop-tech business, was established in February 2016 by Stanford GSB alumni, Prabhat Kumar Tiwary and Sachin Joshi. Both the co-founders were friends as well as colleagues from DXC and Rewat Laxman.
The proptech company has an annualized sales run rate of $1 Million, a healthy order booking of $4 Million and is operationally profitable, according to the company’s statement.
“Since our beginning, we have acquired different sizes of residential assets and run them profitably on our platform with the help of extensively implemented ML and AI on different internal processes of the business. Our tech platform today provides the capability to bet on suitable assets and markets with long term tenants and higher rental yields,” Sachin, Co-founder and Chief Sales and Product Officer at YourOwnRoom, said.
YourOwnROOM is presently working towards increasing to 25 K beds in the coming years. The company will be doing this by venturing in selected 25 micro-markets in Pune as well as Bengaluru, adding Executive Housing that will encompass large assets.
The company currently manages 1,500 beds throughout Pune and Bangalore. It engages with local assets owners--individual house owners, building owners and developers in administering their properties as well as rentals.