Online real estate startup NoBroker has secured $29 Mn or INR 216.13 crore in a fresh round led by the Singapore based and existing investor General Atlantic. Following the latest C2 round, General Atlantic has become the largest stake holder in the company, controlling approximately 30.89% stake in the company, as per the latest regulatory rulings.
Singapore based investment firm had invested twice in NoBroker last year. Initially it pumped $50 million in the series C1 round back in June 2019. This was followed by another capital infusion four months later that was spearheaded by New York headquartered Tiger Global.
In all probability, the current C2 round is not yet been closed and the round therefore could witness more fund infusion in the coming weeks or months.
However, latest fundraising round carries a huge significance as it comes in the aftermath of pandemic lockdown. Real estate sector is said to be amongst the most affected sector by the ongoing lockdown. In such a scenario, the fresh fund infusion should augur well for the Bengaluru based company.
Equally important to note is the fact that the recent tranche in the ongoing C2 round has come just after the company announced its financial results for FY19. The company saw healthy spike in its operating revenue and subscription income in the last financial year. The operating revenue grew almost twice to post Rs 18.07 crore while the income generated through subscription constituted almost 85.2% of the company’s total revenue.
The fact that NoBroker has managed to garner investor’s confidence despite the looming threat of an economic meltdown speaks volumes about the company’s growth potential. But not withstanding investor’s sustained confidence, NoBroker still has an uphill task to climb.
Especially since several well-funded real estate startups like Magicbricks, 99acres and PropTiger have been unable to pose any major challenge to the unorganized market dominated by brokers.