NoBroker Business Model | How NoBroker Makes Money?

A digital revolution is taking place in India's real estate business. To stay up with the trends and meet the wants of their customers, real estate companies are investing in new technologies like cloud services, mapping platforms, and artificial intelligence. By eliminating the middleman and connecting owners, purchasers, and tenants directly through an AI-driven platform, NoBroker is revolutionizing the real estate industry. To shed light on NoBroker's revenue generation process and provide an in-depth review of the company's business strategy this article explores the NoBroker Business Model.

About NoBroker
NoBroker Business Model
How NoBroker Makes Money | Revenue Model of NoBroker
NoBroker USP
NoBroker SWOT Analysis

About NoBroker

Homebuyers and sellers in India often criticize the high cost of brokers and the high number of duplicated postings. The broker fee can be as high as six percent of the sale price or ten months' rent, depending on the broker. By utilizing NoBroker's app for comprehensive property services, from listing to closing, customers can avoid paying brokerage fees. In 2014, three experienced professionals - Akhil Gupta, Amit Agarwal, and Saurabh Garg - founded NoBroker to simplify and enhance the real estate renting and purchase process. The Banaglore-based company provides a variety of services to its users, such as real estate listings, home services, and buying and selling properties.

NoBroker Company | Business Model | Founders | Revenue

NoBroker is the only online real estate platform that is brokerage-free. Know about NoBroker company, wiki, founders, revenue, funding & more.

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NoBroker Business Model

In addition to renting, purchasing, and selling, the company also provides home services like packers and movers, house interior design, and more. They also offer financial services and society management through NoBrokerHood. The national capital region, Bengaluru, Hyderabad, Mumbai, Pune, and Chennai are the six places where the startup is presently present. There are several subscription methods that the company uses to make money. In addition to that, it earns money from commissions on value-added services and transaction fees.

How NoBroker Makes Money | Revenue Model of NoBroker

A significant portion of the revenue generated by the real estate portal comes from subscriptions, financial offerings, and home services. The memberships offered by NoBroker, which are responsible for the majority of the company's earnings, are priced at INR 999 for 45 days and give customers the ability to use premium filters while seeking out flats. In addition, it generates revenue by assisting homebuyers in securing house loan transactions with financial institutions, and in exchange, it receives a commission from the financial institution. Cleaning, packing, moving, giving furniture for rent, doing house interiors, and taking care of internet agreements are other home services that help the company generate more revenue.

NoBroker Financials FY23

For FY22, NoBroker reported an operating revenue of INR 326 crore. This figure saw a significant increase the following year, reaching INR 609 crore in FY23. Despite the revenue growth, the company's total expenses also grew, from INR 679 crore in FY22 to INR 1190 crore in FY23. Consequently, NoBroker's losses increased from INR 309 crore in FY22 to INR 506 crore in FY23.

NoBroker USP

At the present moment, NoBroker is concentrating on enhancing its services by utilizing cutting-edge technologies. Through the use of artificial intelligence projects such as Smart Recommendations for quality of life indicators, Rent-o-meter for rent forecasts, Refer-And-Earn for crowdsourcing property listings, and Touchless Entry for face recognition security features, it provides its consumers with the advantages that machine learning has to offer.

Customers are assisted in locating a home that best suits their needs through the Smart Recommendations project. The algorithm searches for local amenities and public transportation and then assigns a score for both livability and transit. This type of information supplements the details provided by the owners of the property and assists buyers and tenants in making well-informed decisions regarding each property.

NoBroker SWOT Analysis

NoBroker Strength

• The organization has a strong web presence, which makes it an essential domain for people who are looking to purchase, sell, or rent a home.
• The concept of "No Brokerage" is quite appealing in and of itself, particularly to students and bachelors who are often looking for rental houses.
• Because of the ever-increasing population and the larger migration to metropolitan areas, this presents a perfect opportunity for the company to expand its operations.

NoBroker Weakness

• The company needs strong marketing strategies to propel its expansion.
• No Broker needs to keep a strong check on its property ad postings as many times customers have complained about postings being misleading.

NoBroker Opportunity

• At this point, the corporation should expand its operations to include tier 2 and tier 3 cities.
• Considering that India is a country that is dominated by young people, this indicates that a greater number of individuals are actively searching to own property, which is good news for the organization.

NoBroker Threat

• If it wants to stay ahead of the competition, NoBroker needs to update itself because there are a lot of fresh, comparable concepts appearing in the market.

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Conclusion

The business strategy that NoBroker employs is a force that is disrupting the Indian real estate market. As a result of the company's utilization of technology to facilitate the elimination of the requirement for middlemen, the transaction costs for property owners and seekers have been greatly reduced. The business model, revenue model, and approach that NoBroker takes toward its customers all work together to produce a property search experience that is simple to use.

FAQs

What is NoBroker?

NoBroker is a Banagalore-based company that operates as a brokerage-free PopTech company offering a comprehensive marketplace for various real estate services, including buying, renting, packers & movers, and home services.

Who is the owner of NoBroker?

Akhil Gupta, Amit Agarwal, and Saurabh Garg founded NoBroker in 2014.

How many users does NoBroker have?

There are over 30 million registered users on NoBroker's platform. And as per the company, only five percent of the services are paid.