Aurum PropTech Acquires NestAway Technologies in ₹90 Crore Deal, Aiming for Rental Housing Market Expansion
- ByStartupStory | June 2, 2023
Aurum PropTech is set to acquire the entire stake of NestAway Technologies, a house rental startup backed by Ratan Tata, for a sum of up to ₹90 crore ($10.9 million). This acquisition marks a significant decrease in NestAway’s valuation, which was previously valued at $220 million in 2019. Over the years, NestAway has received a total funding of $110 million, attracting investments from renowned investors like Tiger Global, UC-RNT Fund, Flipkart, Goldman Sachs, and Yuri Milner. The UC-RNT Fund, managed jointly by RNT Associates and the University of California, is among the notable investors in the company.
Aurum PropTech, the publicly listed company, will not only acquire NestAway Technologies for ₹90 crore but also provide an additional ₹30 crore to strengthen the business. The decision to invest in NestAway reflects Aurum PropTech’s confidence in India’s thriving rental housing market, valued at approximately $20 billion. Following the announcement of the deal, Aurum PropTech experienced a significant surge in its share price on the Bombay Stock Exchange (BSE), with a gain of over 10%. This boost in share price propelled the company’s market capitalization to ₹362 crore.
“After successfully scaling up HelloWorld’s operations within a year, Aurum PropTech has strategically acquired NestAway,” the company says.
Following the acquisition, Jitendra Jagadev and Ismail Khan, the founders of HelloWorld and former members of the NestAway founding team, will assume leadership roles at NestAway. Jagadev has been appointed as the chief executive officer, while Khan will serve as the chief operating officer. NestAway, established in 2015, utilizes advanced technology and data to simplify various aspects of property search, including visit scheduling, rent payments, and service requests, benefiting both homeowners and tenants. NestAway positions itself as an all-in-one intermediary, offering a comprehensive solution for every stage of the home rental process.
Prior to the outbreak of the Covid-19 pandemic, NestAway had a remarkable presence with 50,000 properties listed on its platform, generating an annualized revenue of ₹100 crore. However, the current scenario shows a reduced number of properties, with 18,000 available on the platform and an annualized revenue of ₹30 crore. The financial performance of NestAway in recent years reflects a decline in revenues, with ₹25.43 crore recorded in 2022, ₹52.05 crore in 2021, and ₹78.27 crore in 2020.
“When we started NestAway, our vision was to revolutionize the way people live in cities by providing them with convenient, affordable and hassle-free housing solutions. Over the years, we have grown and expanded, serving thousands of customers,” says Jagadev, founder of NestAway.
“Aurum PropTech is the perfect partner to fuel our growth and help us realise our vision on an even larger scale,” Jagadev adds.
The acquisition of NestAway by Aurum PropTech aligns with the company’s objective of building an integrated PropTech ecosystem and expanding its presence in the consumer tech segment. The filing indicates that the transaction is anticipated to be finalized by June 30, 2023.
“NestAway’s tech driven revolution in the rental housing market is in perfect accord with our mission to revolutionize the residential rental industry in India. Under the leadership of Jitendra and Ismail, we are confident that we can replicate the remarkable success of HelloWorld, taking NestAway to even greater heights,” says Ashish Deora, founder and CEO of Aurum Ventures.
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