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Co-living YourOwnROOM raises $1.3 M in a seed round

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Residential Prop-tech start-up YourOwnROOM has raised $1.3 Mn in Seed funding from a group of investors that includes US-based Investment firm Lotus Capital, Ravi Chaturvedi, former President of P&G, Narasimha Murthy, Co-Founder of a US based health tech company and a group of high profile Angel Investors based out of US and Bangalore.

YourOwnROOM is a Residential Prop-tech rental and property management business setup by in Feb 2016 by Stanford GSB alum Prabhat Kumar Tiwary and Sachin Joshi both friends and colleagues from DXC and Rewat Laxman.

YourOwnROOM provides strategically located good quality managed co-living and family homes to millennials tenants that are safe and comfortable. They manage 1,500 beds across Bangalore and Pune.

They engage with residential asset owners which include individual homeowners, developers and building owners in managing their rentals and properties.

Ravi Chaturvedi, mentor and angel investor, former President, P&G says, “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.”

According to a recent JLL report, Shared Residential Rental Market is $4.6 B with a Co-living penetration of only 2.3% and will be $14 B by 2023 with an 8.3% 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 stock pile up (12 M) and the need to look at means to get higher rental yields of 5 to 10%.

YourOwnROOM is eyeing for a larger share of the pie and considers Nestaway, Zolo, Colive, Stanza and Oyo as its key competitors.

YourOwnROOM considers its Prop-tech Platform as one of it is key differentiators. Sachin adds, “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”.

Over the last 3.5 years, YourOwnROOM has learned that procuring the right asset at the right location and staying on top of Execution using our Prop-tech platform is critical for our long term sustained profitable growth.

YourOwnROOM has an annualised Sales run rate of 1 Million USD, a healthy order booking of 4 Million USD and are operationally profitable.

YourOwnROOM is working towards scaling to 25 K beds over the next couple of years. This will be primarily done by increasing its penetration in chosen 25 micro-markets in Bangalore and Pune and adding Executive Housing which will include large assets.

Prabhat Tiwary says, “YourOwnROOM is in advanced conversation with a few developers and landowners to sign 5 to 10-year MoUs and JVs for large assets.”

YourOwnROOM has also initiated talks with Institutional Investors, VCs, and Strategic Investors to raise their Pre-Series-A Investment. Their next goal is to scale their business to 1 lakh beds in the next 5 years. This will primarily include further boosting Executive Housing and expanding to other cities. In addition, they will also further boost their Prop-tech Platform and Sales & Marketing.

ALSO READ: RealtyNXT Exclusive: Coliving sees strong growth of 20% YoY in 2019

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