NoBroker, a Bangalore-based real estate startup, has raised $7 million as an extension to its Series B round. The funding comes from Korean investor KTB Network. Existing investors of the company — SAIF Partners, BEENEXT & Digital Garage also participated in this round.
Earlier, the startup had raised $10 million in the same round. Thus, the total funding received by NoBroker in the Series B round currently stands at $17 million. Prior to this Series B round, the startup had raised $3 million in Series A funding early last year.
Commenting on this investment, Chunsoo Kim, Venture Capitalist at KTB Network, said:
I am impressed with the differentiated and disruptive business model of NoBroker, which is solving a huge latent customer demand. NoBroker has already served millions of rent seekers and home owners to find one another, seamlessly through its platform, since its inception in 2013. I am constantly impressed by the customer-centricity at NoBroker and have no doubt that it will continue to champion its customers need. With a large and growing Indian population, NoBroker has the potential to become market leader in this large real estate market.
Amit Agarwal, CEO & Co- Founder, NoBroker.com, said:
This is special because this is the first time that a Korean fund has led the funding round for an Indian startup. Their Korean start up experiences will help us further with innovative ideas so that we can continue to grow exponentially. We are at an excellent position now in terms of customer growth and financials. Global network of KTB will also aid us in our future global ambitions.
While the real estate sector has witnessed ups and down this year, NoBroker claims to have seen steady growth curve. With new funding coming in, the company is aiming to use funds to expand rapidly and move towards becoming the number one online real estate player in India in terms of closed transactions in next 24 months.
NoBroker claims to have served 1.5 million customers till date, making it the world’s largest C2C real estate platform. The platform is also said to be adding more than 1 lakh new registered customers on a monthly basis and witnessing 5 lakh customer connections every month.
Recently, the company shifted its business model to a freemium subscription-fee based model and has been growing revenues aggressively. The startup says that this is the first time that customers are paying upfront platform-usage fees in real estate since they can clearly see 80-90% savings in their transaction cost.
The company says that the market size of residential rental and resale brokerage alone in top 20 cities in India is a whopping $6.5 billion which is estimated to grow to $17 billion over the next 5 years.