YourOwnROOM – Transforming to being a leading Residential Real Estate Asset Management Company in India

• ByStartupStory     |    May 27, 2022

YourOwnROOM is a prop-tech residential real estate asset management firm with an AUM of 1 million sq ft valued at 400 crores, an ARR of $1.5 million, a $10 million order book, and a $40 million sales pipeline. They act as a trusted custodian of residential assets for homeowners and real estate Investors and offer multiyear rental management and property management services to them. They help them get continuous cash flow, higher rental yields and higher capital appreciation from their residential assets. They partner with PropCo companies and Developers as Asset Manager to increase their sales velocity, rental yields and capital appreciation of their residential asset portfolio.

YourOwnROOM is in the process of transforming from a residential rentals and property management company to a residential real estate asset management firm. This will lay the groundwork for their future ultra-profitable expansion. They’ve set a revenue target of Rs. 15 crores ($2 million) for the current financial year. In Bangalore and Pune, it will continue to grow its market share in Residential Rental Management and Property Management. They are placing a huge bet on developing strong B2B strategic partnerships with PropCos, Developers, and corporates in order to deliver end-to-end rental and property management solutions for their large assets. Over the next five years, they will form collaborations with roughly 5 such enterprises with a TCV of 350 crores ($50 million). This will also provide opportunistic expansion in emerging cities.

The brand was founded by Prabhat Kumar Tiwary, the CMD and CEO of the firm having 26 years of experience in technology, enterprises and start-up and is an alumnus of Stanford Business School and Birla Institute of Technology, Ranchi.

Residential real estate market dynamics and industrial size –

Real estate sector in India is expected to reach US$ 1 trillion in market size by 2030, up from US$ 200 billion in 2021 and contribute 13% to the country's GDP by 2025 and providing 75 million jobs. The market has also created serious financial distress due to unsold properties and properties under construction. The supply chain is speedy but the demand does not match creating significant distress. Almost 6.4 lakh properties worth 50 billion are left unsold along with 11 million vacant homes. Investors are now not only looking at it as an asset to own but as a financial product i.e. capital appreciation and rental yield of the asset.

Impact of covid on the industry –

Covid accentuated the prevalent issues and increased the stress points and brought out issues that already existed. Technology is used for everything and things have evolved during this phase and will play a critical role whether it is buying or selling, rentals as well as rental management. The firm is lucky to establish itself as the prop-tech player in the rental property management space during this particular time.

Changes in customer’s perception and evolution of customers needs –

Consumers still struggle to get a safe secure home, which is work from home friendly and close to their office. Everyone has understood that life is going to be centred at home and people are going to socialise, work, eat and live together. Demand for alternate homes, for students, singles, families, and seniors has increased. Housing interest rates and repo rates are at a historic low and when these rates come down sales increases and are pointed out in the statistics.

Major unique differentiators of the startup –

“Our vision at YourOwnROOM is to deliver higher economic returns to our Residential Real Estate Asset Owners over the Asset Lifecycle using our Proptech based Residential Real Estate Asset Management Solutions.” Says Founder and CEO, Prabhat Kumar Tiwary.
YourOwnROOM’s main differentiator is the prop-tech platform which was developed over the last 6 years which includes operational excellence, automation and customer engagement. Secondly, YourOwnROOM have good assets which they call as “golden assets” which are A-grade properties of tier 1 developers that constitute about 70% of the portfolio. And lastly, YourOwnROOM has large partnership with ProCos with multi year arrangement to be their prop tech operating company for coliving and residential real estate asset categories.

How did last Financial Year turn out –

The company had a very good year as it grew significantly in 2021-22 and exited the year with an annual revenue run rate of close to 10 crores. It focused heavily on profitability and cash flow management over the last 2 years. Earlier it offered only residential rentals for co-living, and families but now it expanded its portfolio during covid and introduced property management which constitutes  1/5th of its entire portfolio.

Company’s position in the next 3 years –

Transitioning from a prop-tech rental management company to a prop-tech residential real estate asset management company, Growth has been a cornerstone when it comes to a strategy for moving forward. It has a revenue goal of 15 crore with increased penetration in Bangalore and Pune and the backdrop of partnerships. Intend to make the firm Multi-asset and SaaS-enabled by using the UI UX revamp. It is in the midst of raising a pre-series A investment round. All this is mainly to fuel growth and focus on sales marketing along with the tech platform.

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