Here’ s the second and concluding part of our talk with Saurabh Gupta, Founder of Propertywala.com
The first part is here.
BINC: What is the business model at Propertywala.com, since your platform is currently free for both buyers and sellers, or is it too early to think of?
SG: We have a slightly different business model from most Indian real estate portals. Basic property listings will always remain free for individual buyers and sellers. Our business model relies on charging for value added services, lead generation and premium advertising/branding for property brokers and builders. The business model is flexible and will evolve based on feedback.
BINC: Do you have any angel funding, VC backup? Is it required at this stage?
SG: Angel/VC investment is on the cards but we are not actively looking for it at the moment. We will look for funding once we are profitable for a better negotiating position.
BINC: Do you have any tie-ups with developers, builders or dealers?
SG: Yes, we are in talks with some brokers and builders who are interested in participating in our lead generation and distribution network. Some builders have also expressed interest in advertising their upcoming projects online exclusively with us.
BINC: The inflation is rising, RBI has hiked interest rates, so how do you the property market getting affected in light of these developments? Would this affect your venture?
SG: I believe the market is going to correct itself. I don’t see it affecting us in the long term.
BINC: And how do you plan to scale from here?
SG: Later on we want to increase our offline presence with advertising and local offices in major cities. Our aim is to be reachable by media other than Internet as well.
BINC: It’ seen that in India many people can’t get online for whatever reason, and so offline physical model still works very well. Any thoughts on this? Do you ever see Propertywala.com being an offline brand?
SG: We do realize that. Even with the rapid growth of Internet in India it still reaches only a small fraction of the population. We plan to be known as an offline brand as well, with PropertyWala.com portal being one of the many ways to reach us.
BINC: What is the biggest advantage that you see doing business on the Internet?
SG: I would say the biggest advantage is that gives a more level playing field to startups and small businesses like us.
BINC: Do you plan to reach the customers in Tier-2, Tier-3 cities? What’ your outlook about the same?
SG: Tier II and III cities present a very fast growing real estate market. For now we are working on tie-ups with brokers and builders in these cities. Eventually we wish to have local presence in these cities.
BINC: What are your future plans?
SG: Our aim is to offer several real estate services ranging from being the first point of contact for a buyer/seller to completing the sale. We plan to offer several real estate related services like consulting, home loans, property valuation, architect and construction services under one roof within the next few years.
BINC: Please go ahead and add anything that you feel is quite relevant and missing.
SG: Thanks for the well thought out questions. One more I can think of is regarding NRI real estate investment in India. More NRIs than ever before are trying to invest back in India, especially those in the US with the economy not doing that well (especially the US real estate market with its mortgage crisis). Real estate is the preferred option for investing. Lack of information and the tedious paperwork required are among the major hurdles keeping them from investing. To address this issue we will have a panel of experts which will offer investment advice and help NRIs with the sale. NRIs based in US/Canada can call our toll free number (1-888-663-2070) for any help related to buying or selling properties in India.
Thanks a lot for you time and conversation about the property market in India. Thanks!
