Ladies and gentlemen, good day, and welcome to the Aurum PropTech Limited Q2 and H1 FY 2024 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Vanessa Fernandes from Investor Relations. Thank you, and over to you, ma'am.
Thank you, Rayo. Good evening, everyone, and a warm welcome to the Q2 and H1 FY 2024 earnings call of Aurum PropTech Limited. Joining us on the call today, we have Mr. Ashish Deora, the Founder and CEO of Aurum Ventures; Mr. Onkar Shetye, Executive Director, Aurum PropTech; Mr. Kunal Karan, CFO, Aurum PropTech; and Mr. Hiren Ladva, EVP Investments, Aurum PropTech. Today, we shall take you through our quarterly and half-yearly performances for the period ended September 2023, as well as our future outlook. Before we proceed, I would like to remind everyone that the forward-looking statements we may discuss are subject to risks and uncertainties that are detailed in our prospectus and the annual report. We encourage you to review these documents, which are available on our website, to fully understand the risks associated with any future projections or statements made.
We shall now begin the call with Mr. Ashish Deora.
Thank you, Vanessa. Good evening, everyone. It is my privilege to welcome each one of you to this tenth earnings call of Aurum PropTech. We are now in our third year, having committed to bring digital transformation to the real estate sector and creating an integrated PropTech ecosystem. This quarter has been super special because Aurum has now become the largest residential rental management platform in India. We are managing more than 27,000+ rental units between HelloWorld and NestAway, and it's indeed our delight to share that both teams have been integrated and are working efficiently. Our efforts to transition NestAway to a lean and flat enterprise are showing results already. We are delighted to share that NestAway restructuring is progressing as per the plan, and we are confident to turn around the business by the end of this financial year.
We remain excited to double our capacity of rental units under management to 50,000 beds over the next few quarters to ensure that we continue our dominance in the residential rental market, which in our estimate, is at an annual recurring business of $25 billion. As our core living brand, HelloWorld, crossed the important benchmark of INR 100 crore in the ARR last quarter, we believe that our team's determination, along with disciplined execution across functions and across products, we will lead all our other services and all our other products to be in the 100 crore club sooner than planned. Moving on, EBITDA as a metric continues to be our North Star. We are ensuring that growth is sustainable and not at the cost of unit economics.
We have focused on building capacities across our business offerings in the first half of the year, and we expect the second half to reap the benefits of these expanded capacities. Our target is to double the revenues of Aurum Analytica and Aurum WiseX from current quarter to Q4 FY 2024. As the residential sales cycle picks up in the festive period of Q3 and Q4, we also expect BeyondWalls to have substantial growth over its current quarter. At the strategy level, we challenge ourselves daily to ensure that our products and services are aligned to the single objective of meeting the needs of tech, capital, and services within the real estate value chain. At Aurum, we are gradually transitioning our journey that began in July 2021 with a strategy of acquisitions and inorganic growth to now deepening our ecosystem through organic growth.
We believe that we have built a well-equipped ecosystem to benefit all the stakeholders of the real estate industry. I would now like to conclude by throwing some light on our second edition of Aurum Neev Seva Fortnight that was held from 17th September to 2nd October. 250 Aurum team members came together to volunteer towards our core initiatives of Tree Plantation, Service of Nutritious Meals, Beti Padhao, Medical Interventions, and Safe Man Hours for construction workers. With this, I now hand it over to Onkar to take this further. Thank you, everybody.
Thank you, Mr. Deora. We continue to make substantial progress on tech upgrade, operational alignment, and customer experience initiatives at all our businesses. These three areas manifest our three focus areas and show up in our core day-to-day work, which results in integrated alignment of our 800+ employee effort across India. Our business within the technology, capital, and services space continued to show robust growth quarter on quarter across our businesses. Across the ecosystem, we had 16,000+ active RaaS customers and 520+ active SaaS customers. Our tech platforms enabled active 60,000+ home buyers and 10,000+ renters explore their real estate purchase and rental needs. This quarter, we have completed integration of NestAway into Aurum PropTech's ecosystem and have commenced to calibrate its user experience, operational excellence, and upgrade its data-driven technology offerings for demand and supply matching of rental real estate.
From a financial standpoint, post-acquisition, we have focused on restructuring and turnaround of the business. Key initiatives implemented have been exit from non-profitable cities, rationalizing tech and infra cost, organization restructure, refined performance marketing, and addressing customer grievances. With this, we have significantly brought down the losses of NestAway, whereas at the same time, increasing occupancy rates by 11% during this quarter. These are some big wins for us and set us on the path to achieve our first milestone of wiping out losses at NestAway by December 2023. HelloWorld Technologies revenue stood at an ARR of INR 107.04 crore for the quarter, showing a 25% quarter-on-quarter growth. Additionally, quarter-on-quarter, there was 33% increase in operational beds and 20% in tenants serviced. We also made gains of 17% in revenue per employee.
Aurum Analytica, our data analytics business, has now hit a 235% year-on-year growth with 61,000+ prospects identified with our data analytics suite. We now have more than 100 projects signed on the platform across India. BeyondWalls continues to hold leadership position in Pune market, with INR 283 crores worth of inventory invoiced on the platform. Monk Tech Labs, 13% quarter-on-quarter growth and processed $6 million worth of transactions for rental real estate across the globe on its platform. Integrow Asset Management and Aurum WiseX did a joint GTM by launching a tech-enabled real estate PMS. This quarter, 5,800+ new users were added to the Aurum WiseX platform, demonstrating traction in the Neo-realty platform that it hosts.
As we move forward into the year, we would like to reiterate our continued commitment to further scale up PropTech's business with tech, services, and capital integrated play. I will now hand over to Kunal Karan, CFO, Aurum PropTech.
Thank you, Onkar. Good afternoon, all. The Board has approved the results for the quarter and H1 ended September 30, 2023, at its meeting held on October 23, 2023. I will take this opportunity to take you through some of the numbers for this quarter. Revenue from operations for the quarter was INR 62.77 crores, as compared to INR 44.16 crores in the previous quarter, increased by 19%, and compared to corresponding quarter previous year, that increase is 86%. The total income for the quarter was INR 87.53 crores, as compared to INR 47.71 crores in the previous quarter, increased by 21%, and for the corresponding quarter previous year, that increase was 87%.
Loss for the quarter is INR 23.89 crores as compared to INR 16.12 crores in the previous quarter. Segment results, SaaS and RaaS revenue for the quarter was INR 6.25 crores and INR 46.52 crores respectively. Revenue from operations for the H1 was INR 96.93 crores as compared to 42.94 crores in the corresponding period previous year, increased by 126%. The total income for H1 was INR 105.24 crores as compared to INR 46.56 crores in the corresponding previous quarter, previous year, increased by 126%. Loss for H1 was INR 40 crores as compared to INR 18 crores in the corresponding period previous year.
The segment revenue, SaaS and RaaS revenue for H1 was INR 11.97 crores and INR 84.96 crores respectively. With this, I will pass on to Hiren to take you on the... Sorry, with this, I will pass on the call to the operator to open the floor for question and answer session.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask questions may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. To ask questions, please press star and one. The first question is from the line of Darshil from Crown Capital. Please go ahead.
Hello, hello, good evening, sir. Hope I'm audible?
Yes, you're audible.
Yeah, yeah, yeah. Hi, thank you. Congratulations on a great set of results. So I just wanted to know on, with our various now businesses, how soon can we expect maybe, you know, positive EBITDA and PAT? Like, what would be our timeline for it? Hello?
Yes, Darshil, this is Hiren this side. On EBITDA and PAT, as we have maintained in the previous, you know, quarterly updates as well, we are looking at the next four or five quarters where bulk of our, you know, cost optimization initiatives, etc., will start showing results. As Mr. Deora and Kunal have already pointed out, this quarter and the previous quarters have been more about capacity building. And we see a stabilization of a lot of our costs in the coming quarters.
So, Darshil, if you see only the EBITDA numbers, I will not say EBITDA, maybe adjusted EBITDA, maybe after ESOP, we are already positive. So in that case, EBITDA positive, we don't see a challenge, but definitely PAT will take a couple of more quarters to be PAT positive.
Okay, sir. And sir, with regards to our major, five, six segments of business, I think last quarter we were saying we around two are already PBT positive. So is that the same this quarter, too, or have more businesses now started becoming PBT positive?
So, if you see the two businesses that we said, they are positive, and they have already crossed their breakeven, but definitely we have to build up our revenue, considering the next two quarters are very important in the real estate sector. So we are trying to build up capacity, and for that, we have taken some additional costs from this quarter to build up that base. So, otherwise, if we are on a steady operation, so there is no problem in terms of tax for those profitable companies. And mostly the companies which are contributing 60%-70% of our revenue, they are all in that sense positive, if we see a constant kind of position.
But we definitely want to grow, and that much of additional investment we are doing it for the businesses to grow, in both in terms of revenue, and definitely it will give results continuously going ahead.
Okay, sir. Just two more questions, if I may. Hello?
Yeah. Yes, Darshil, please go ahead.
Yeah, yeah, yeah. So, just wanted to o ur other expenses have increased, so just want to know the variability of our expenses right now, if you could. So, as our revenue will grow, what point operating leverage will kick in, like current, our expenses, how much percentage employee costs will be increasing more? And so how much of other expenses would now have we reached a stabilization with our employee and other expenses, is what I mean to say, so that now the additional revenue will directly flow through? Or do you think we need some more other variable expenses that will also be a part that will, you know, keep up, will become more costly for us? So that's one question. And, do we stand by our INR 100 crore target for Q2, Q4 FY 2024?
So I will take the first one. So definitely, with our current expense base, and it is around seven to eight businesses, and based on that, current performance, so the variable expense varies from, I would say unit-wise from, say, 24% to around 90% in some case. But at the overall level, with the current expense, it is more or less 60% of the expense is variable and 50% is fixed. But it varies from unit to unit. So that will be very difficult to answer this, that how much is variable and how much is fixed. So you can keep this fixed cost as a base, and we can move ahead.
Okay, sir. And with our Q4, will we be able to reach INR 100 crore revenue, and would that be possible, sir?
Darshil, this is Ashish here. First on, just to add to what, Kunal and Hiren already said on, on our numbers. You know, and NestAway, which was losing INR 40 crore, annually, now is looking to get profitable. And that is the kind of discipline we bring with, capital and unit economics is what we believe, sir. And that's across all the businesses, all the brands, all the products. On the 100 crore number, we are well geared to get close to 100 crores. Obviously, with the acquisition of NestAway, the management team and the capital and lot of our energies have gone into reorganizing the NestAway, integrating that with HelloWorld and vice versa, and also to make the largest rental management platform in the country.
So while, while organically, we believe that the revenue will get close to INR 100 crore, but I think the focus really is to kind of get profitable at the earliest. Be as positive in each and every product, and ensure that we continue our dominance in the rental management platform.
Perfect, sir. I'll join back in the queue, so I have a few more questions. Thank you.
Thank you. The next question is from the line of Bhavik Mehta from Roots Ventures. Please go ahead.
Hi, everyone. Good evening. So my primary question was around the SaaS and the RaaS business that we report. So do we actually track the retention rates, the quarter-on-quarter or annual retention rates, on these recurring businesses? And also, what part of it is driven by cross-selling products, given that now we have complete end-to-end, service and tech offerings. So are we able to cross-sell across our products? And if yes, what is the contribution of that? Thank you.
Thank you, Mr. Bhavik. So firstly on SaaS and RaaS, so definitely for SaaS as well as RaaS, we definitely track retention more so where the businesses are B2B in nature, right? So, for example, it's retention is not actually really applicable for the rental business, but for the rest of our businesses, yes, we do track retention at individual business levels. And within SaaS itself, we have at an aggregate level, maintained more than 100% net retention over the last three to four quarters for all the businesses, which is both sell.do as well as the couple of products from Monk Tech Labs.
In terms of cross-sell, yes, where one part of the activity which has been taken up for the last couple of quarters is actively building capacity, which is helping us to cross-sell. And there are several initiatives that we have already called out in the past. Notably, for example, between Integrow, WiseX and Aurum Analytica, or between Aurum Analytica and WiseX, or between Aurum Analytica and HelloWorld, as well as between BeyondWalls and Integrow, right? So there are various such interactions where not only you know, customer connects, but the relationships are also leveraged, and hence we are able to bring the same customer through multiple touchpoints within the entire life cycle.
Sure. So, so what part of our INR 57 crore revenue would then be B2B versus B2C? Although, you already mentioned a broad company-wide data, but, if you were to evaluate it from that lens, what part of our revenue would be B2B?
I would say of the INR 57 crore, I think, roughly INR 30 crore would be B2C. I'm giving a very rough number, but we can, you know,
Sure.
Back to you with a more exact number, but it's roughly around that, which would be B2C, and the balance would be B2B.
Sure. So I think the next question is that given the tailwinds around the real estate sector across the country, so do we think that our B2B segment is growing commensurate to that, or is there some missing element that now that we have enough quarters of data around with us, so do we think there are some bottlenecks, or some acquisitions which are not yet streamlined, as you would have imagined? Given that, we are, although INR 100 crore was an aggressive target, but we are not getting closer to that. I'm sure it will be a bit short. So what is your opinion that are we growing incommensurate with the industry or certain segments that have lagged behind and certain that have outperformed?
Let me take it in two parts. One is how have we grown relative to the industry? I think I can confidently say that when we are growing at an aggregate level close to 100% year-on-year and you know kind of when you compare quarter to current quarter to previous year's quarter or you compare the trailing twelve months to the you know the year before we have demonstrated more than 100% growth consistently as we see over the last three quarters right?
So, why I'm mentioning only the last three quarters is that's where, you know, bulk of our businesses have consolidated together, and hence that gives a more, you know, a more appropriate and relevant view as you were continuing, right? So, yes, in that sense, yeah, our growth rate, rates have been, I would say, much higher than the market growth rates. Secondly, in terms of your of the tailwinds, there are, you know, predominantly two sectors that we can look at where we are present from a larger revenue base point of view. There are two, three other segments which are kind of growth areas, but I'll talk on the first two parts. One is the rental market, which, Mr.
Deora already kind of talked about being a $23- $24 billion market. As of today, we are within that, in the living and the rental space, we have now become the market leaders, and the growth will continue. This is a B2B, B2C business. So the growth rate here will be, you know, kind of, we have seen, for example, Hello World started with an ARR of roughly INR 38 crores in March 2022. And today we are at INR 108 crores as we speak today, right?
So that's the kind of growth that we are seeing in this business, and we feel that, if not 100%, we'll be in a fairly good territory of upwards of 50%-60% and more over the next 10 months. As far as the other business is concerned in terms of tailwinds, which is the transaction business, which I believe you are referring to in the residential side. So there's both Analytica as well as Beyond Walls and sell.do plus our in-house you know businesses like on Aurum KuberX as well as InstaHomes. All five of these businesses will see a good you know performance in Q3 and Q4, and that's where our capacity building activities have also happened in the current quarter, right?
So we definitely feel that the tailwinds are going to, you know, have a positive impact on our performance in the coming quarters.
Sure. So, so if you were to speak of HelloWorld specifically, so, do we categorize it as a non-tech business offering for now? Because, see, fifty, it although it's growing at a very fast pace, but primarily we, we, would we categorize it as a tech business? Because that is more on the co-living, rental piece. And the NestAway acquisition that we've done, we could categorize it more as tech. Is that a correct understanding?
So both businesses will fall under the tech category. NestAway will fall under the discovery plus fulfillment category, and so will HelloWorld. Both are dealing with two different types of assets, and both are solutioning both sides. Tech is solutioning both sides, supply and demand as well. At HelloWorld, you are solutioning with tech the supply side, by the way, of giving, you know, a rental management software to the landlord or the property owner who's able to then, you know, manage his MIS, building P&Ls, tenant experience, and so on. And on the demand side, you are able to give the discovery platform and also, you know, various other value-added services on the HelloWorld app. Similarly, NestAway also follows the same journey.
We would definitely categorize both as tech-enabled businesses in the rental real estate space.
Sure. And although, we mentioned that, the NestAway losses are reduced, so has that come at the cost of lower revenues for us at this, in this quarter? Given, I think, that the time that we had announced the acquisition, the ARR would have been much higher.
Oh, yeah, Mr. Bhavik actually, there's been a very marginal impact on the monthly revenue. Simply because what the team has done is they've taken an exit from cities which were not contributing to the top line at all, but contributing significantly to the, you know, to the cost structure, right? So that's one reason why the cost structures have gone down significantly, but at the same time, they have not impacted the top line in a big way.
Secondly, during the quarter, while we were looking at all the cost optimization measures, the team was actively working on customer experience and ensuring that the brand, you know, visibility remains as well as there is a positive understanding of how NestAway is transforming, and which we saw that in the five or in the six cities that we are currently present in, the gross addition of tenants has actually been positive, right? So net-net, the revenue impact has been there, but it's very marginal in terms of revenues per month.
Would it be possible to share QoQ numbers or YoY numbers for NestAway? So it's INR 7 crore this quarter. What would have that been on a comparative basis, last year or maybe in the previous quarter?
Right. So from a ARR point of view, for example, NestAway in Q1 of FY 2024 was around INR 35.5 crores. This is from a ARR point of view, and this quarter, Q2, it has gone down to INR 32 crores.
Okay. Understood. So, thank you. And my last question is around the PMS that we've launched. So, does that mean that the data that we are gathering around the various properties, we would utilize that and target specific projects via PMS or the AIF route? Is that the next step in that direction, or how are we planning to utilize the PMS in this context?
It definitely provides us an opportunity to leverage the newer Realty PMS across our other products like BeyondWalls, sell.do, Analytica and so on. However, first, the idea is to you know have this PMS operate independently on a standalone basis. And once we have gathered enough traction here, then we start integrating other businesses as well. The route to PMS is of course you know converting that to a financial instrument and then rolling it out as a PMS. So that journey is also you know that journey also needs to be taken care of, where the supplier or the you know the property owner or the landlord is also to be considered.
Okay. So there is no identified property or, regions that you've defined within the PMS?
This is only the launch phase. We have not yet gone on to synchronize all our micro markets onto the PMS. The first phase will, PMS will operate on a standalone basis, where we will build acquisition and distribution capabilities at Aurum WiseX . And once that has gained traction, we will start onboarding other, you know, other ecosystem assets also.
Sure. Thanks. So my last question is again, what from what the previous question previous from the previous caller, that would we be in line to touch INR 75-INR 100 crores in Q4, or, do you have to watch it quarter- by- quarter?
So Bhavik, this is Ashish here. So, revenue is organically getting close to INR 100 crore. It's our indication as Hiren talked about the growth, growth percentage that we have seen over last three quarters, over year-on-year, quarter-on-quarter, I think we have been a steady growth. I think challenge really is to grow with keeping unit economics in, in mind. Challenge really is to grow with disciplined capital behavior in mind, right? So while, while we are all very enthused about getting close to a INR 100 crore revenue in Q4, but we will keep a very, very keen eye on the unit economics and capital behavior. Having said that, focus has moved a little bit in this quarter from aggressive growth to becoming the largest rental management platform in the country.
That pivot has happened because of NestAway, because of the acquisition of NestAway, and because of the results that we are seeing at HelloWorld and NestAway . However, as we all talked, the numbers of Analytica, the numbers of WiseX, they are all looking to grow to 2 x of what it has been in this quarter to Q4. That is what we are expecting and understanding.
Sure. I will, I'll get back to the queue. Thank you so much.
Thank you. Before we take the next question, a reminder to participants that you may press star and one to join the question queue. The next question is from the line of Devang Chokhany from Devang Management . Please go ahead.
Good evening, everyone. So my questions, my question was from NestAway. So we have seen NestAway grow at a valuation of INR 1,810 odd crores at its peak. So do we see NestAway being scaled up that usually in near future?
So Devang, there are enough reference points that we can feel confident about with respect to NestAway's valuation in the future. Once we start bringing efficiency in its management practices and also, you know, operational unit economics. One big reference point is a company in Brazil by the name QuintoAndar. QuintoAndar manages 80,000-odd rental units in Brazil and is valued at $3.5 billion. In a market which is behaving similar to India, in a demographic that is similar to India, and even the real estate assets behave similar to India. So that gives us confidence with respect to NestAway's valuation.
Okay. So,
It also had a similar investor base that we saw in NestAway. Some of the prominent names like Goldman, Tiger were a part of the investor base.
Sure. Thank you. Also, could you throw some light on the TAM of the rental market? Do you have any assessment on the same?
Devang, Hiren here, you are referring to the TAM of the NestAway, right?
Of NestAway and the rental market as a whole.
Okay. So, yeah, see, rental market right now, one, as Mr. Deora called out, it's a very large opportunity with $24 billion-$25 billion, you know, billion dollars of rental money transacted on an annual basis. There are various ways to cut and dice the market, but if we even look at the top metros, top 15 cities, top 15 cities-20 cities, and, you know, probably 60%-70% of the market will be sitting there. Now, within that, the promising segment or the promising trend, which over the last couple of quarters has been getting good a bit of coverage in terms of the changing needs of the younger generation, right? So there are three, four things which are happening.
One, you know, large companies, not just IT companies, but, you know, large tech companies have started setting up shop in India, specifically in, beyond the IT companies, in the sector of semiconductors, etcetera. So electronics manufacturing, plus, followed by there is a big trend of, you know, global capability centers being set up in India. So all these, you know, setups and infrastructure addition is leading to a growth of white-collar jobs in the top, you know, metro cities, and there's going to be huge amount of recruitment from the campuses and the young working professionals are going to come to the cities, and they would be meeting those, you know, this housing needs.
And, which are, you know, kind of modern, which are, you know, standardized, are much more hygienic, are much more organized. And this kind of, you know, tenant base is obviously very necessary and, you know, they need solutions which are not just enabled by tech for discovery, but also during the consumption cycle, right? So entire tenant experience, the housing renting experience, et cetera, it has to be digitized. And that's where lies the opportunity of growth for the new segment within the rental market, which is the shared accommodation and the shared living, right? And that's where we see an exponential growth happening in the shared accommodation segment.
And this market is, I would say, a fraction of the overall rental opportunity right now, but it's going to grow significantly. And so that's broadly our assessment of the rental TAM, and I hope that gives you a fair idea.
Devang, I think it will be a $15 billion market by 2025. We should have, and there's a report where it is affiliated. It should have a size of around 4.5 million consumers looking for a rental solution. 5.7 million consumers requiring a rental solution, in top 20 metro cities, in top 30 metro cities in the country.
Okay, that looks like a huge opportunity. Thank you so much. That answers my question.
Thank you. The next question is from the line of Alpesh Thacker, who's an individual investor. Please go ahead.
Thank you for the opportunity, sir. This is more on the, you know, transaction business side, which is BeyondWalls. So what will be recently-
Sorry to interrupt you, but, your voice is a little muffled. If you are on a, hands-free, request you to use the handset.
Sure. Hello. So this was regarding.
Please go ahead, Alpesh. We seem to have lost the line from Mr. Alpesh. We'll move to the next question. The next question is from the line of Satyen from PGPL Limited. Please go ahead.
Hi. I was just going through all the presentations made by Aurum, briefly because, and I just want to understand what's the company's plan towards this capital segment, which covers Aurum KuberX, Integrow, and WiseX?
So Mr. Satyen, within the capital segment, what we are looking at is where we can play a tech-led role as far as, you know, investment and financing is concerned. To start with, KuberX is directly addressing the financing journey in the real estate sector, which happens to be mostly in the housing sector, right? So, and the idea is to leverage our presence through businesses like BeyondWalls, InstaHomes, and then other businesses which are alike to the transactions journey, so that we can offer attractive financing solutions to the home buyers, which could be both in primary as well as secondary sales market, right?
What we have done here is build a tech platform which helps in, you know, distribution of the financing products through ties with leading banks in India. Right, so that's one segment. The other e xcuse me. The other two businesses are on the institutional side, wherein Integrow Asset Management Company, in a very simple model, it enables attractive financing to a developer through a tech platform which helps in not just underwriting of the project, but also a tech-enabled monitoring of the project. And this adds a very differentiated layer of transparency to potential investors who would want to invest in this projects, right? And how we do that?
We do it through the AIF route, wherein we have a couple of funds addressing both the residential and the commercial market, invest to gain out of the attractive returns that they get, and the developers on the other side, other hand, get access to a more institutional and diversified capital to finance their projects. Now, the third business, which is WiseX, that is a tech platform that we have built, what we call as the neo-realty platform, which enables distribution of this, you know, fund financing products to a much wider net, beyond just the institutional financings or NBFCs, right?
So there are HNIs who would want to participate in this journey and journey of investment into property sector, which is not just in the development space, but it could be in you know, kind of, leverage assets or products like LRDs, et cetera, right? So this platform enables the investors to gain access to investment products in this in this particular sector, right? So that's broadly the business models of the three plays that we have in the capital segment.
Okay, so I even wanted to understand, does the company in future plan to even have a product, something like a REIT?
So at the moment, that's not on the radar. We are, we are focusing on the products that we have launched, and then, you know, idea is to grow and build these products. Having said that, yes, SEBI has, you know, kind of launched a consultation paper on what was known as fractional ownership.
Yes.
That should be implemented through an MSME REIT , is what they are proposing. But we are awaiting, you know, we await the formal announcement of the regulation from SEBI, and then we can respond better to that.
Okay. Okay, got it. Thank you.
Thank you, sir.
Thank you. Next question is from Darshil, from Crown Capital. Please go ahead.
Hi. Hello, hi. Thank you so much for taking my question again. So, so I just wanted to ask maybe, like, our journey, I think you started in the last three years, you've achieved a lot, so maybe even six quarters down the line, we'll achieve profitability. But as we are such a unique company, maybe beyond the six quarters that we see, maybe in FY 2026, how would we... How would profits move, like, in so many diverse sectors? Could you just give some kind of color on, you know, what kind of margins would be, what our company could have? You know, something that, you know, that could, you know, maybe help us, you know, say, okay, that is the target that can happen, like, that is the, you know, company's potential.
Because we've grown at a tremendous rate, and we have so many diverse products, which, you know, something that, you know, that could help people who are not in this field understand, okay, okay, six months, we'll take this much time to reach profitability, but after that it's going to be a very nonlinear growth and explosive growth in profitability. So, you know, something along those lines of color, maybe not a call, a just a fixed number, but just some kind of color, you know, a range or something. Anything will be very helpful. Thank you.
Darshil, it's, I think, the answer to your question is in your question itself, that it's going to be very difficult to put a, or, you know, even a range around that at the moment. And why is also kind of, you have also called out the why. But broadly, you know, how we see it is, you know, there are different businesses, as you rightly, you know, as you understand it very well, you know, they'll have their different sets of, profitability. But, you know, our minds and our energies right now are focused on, you know, growing, you know, some of this business over the next few quarters. Keeping in mind that we have a good tab on the overall operational efficiencies and the profitability, right?
Once, you know, for example, NestAway is a classical example where we have taken that focus for the next, for the previous quarter as well as the next quarter, to first reach the, you know, unit economics level, and then see what is the reasonable way to, you know, kind of grow this product, both from a, you know, handsome growth point of view, but at the same time, not losing or not compromising on the unit economics, right? So that will remain our, you know, kind of direction. But at the same time, you know, you'll have to give us a few more quarters to give, you know, what could be the range in terms of the, or the profitability at a consolidated level that we could expect.
No, no, I understand that, sir. Just, wanted, was curious about. But, sir, if are we decently sure that maybe in FY 2025 we'll be able to be breakeven on consolidated level? Is that a fair assumption, sir?
Darshil, Mr. Darshil, I'm sorry, I didn't get you on the... If you could repeat your question.
No, I was asking on , like, maybe, in FY 2025, we will able to, have, like, a positive PBT, maybe, like, is that a fair assumption? Or maybe that also you could maybe come down in the next one or two quarters. Just, you know, some color on that, that would be helpful, sir.
Yes, all our efforts are in that direction, right? However, you know, I let the next two quarters pan out, and we'll have a better clarity on one, exactly which quarter and exactly what.
No, no, no. Thank you so much. All the best, sir. Looking forward to great results. Thank you.
Thank you. Before we take the next question, a reminder to participants that you may press star and one to join the question queue. The next question is from Alpesh Thakkar, who's an individual investor. Please go ahead.
Sorry, I got it. What, what was the GTV plan under BeyondWalls platform?
Mr. Alpesh, we couldn't hear you very clearly.
What was the GTV in this quarter?
Alpesh, your voice is breaking. If you're in an area that has no network, I request you to move to a better network area. Mr. Alpesh, can you hear us? We seem to have lost the line from Mr. Alpesh again. We'll move to the next question. The next question is from Rajesh Shah, who's an individual investor. Please go ahead.
Yeah, actually, I was referring to the investor presentation slide, and just wanted to understand the RM operating model that's been highlighted this quarter. If you could just throw some light on how we are working with the different companies in terms of NestAway, and what is the ecosystem collaboration that's happening over there?
Yeah. So, I recollect the slide you are talking about, right? So that's broadly our guiding principle, how we engage with all the businesses, that we have under our ecosystem fold as of now, right? So it does not apply to one specific company, it actually applies to all the, all the businesses, right? So, I'll in the interest of time, I'll try to summarize it, very quickly. But at the high level, what we at Aurum PropTech, level here focus is on, some of the things which are very given in terms of the governance and the, the risk, the GRC framework, as we call it. The, you know, from a strategic oversight point of view, you know, how the AOPs are aligned, how they are reviewed, et cetera.
And what is there with the partner companies is more on, or the business is more on, you know, the execution, the ownership over the product, the ownership over the customer, and the go-to-market strategy, right? So these are all things that they individually take care of. Now, what is common and where the collaboration happens is where you bring in the shared services, like, for example, which we have done not just for NestAway, but for K2V2, for Analytica, for HelloWorld, is to have a, you know, a centralized team which works on the finance and accounting side, which works on the legal and compliance side. HR specifically, you know, the culture part, the processes part, et cetera, are kind of individually owned by the business heads.
But at the central level, you know, there are certain policies, Code of Conduct, the HR compliance part, right? Which are guidelines set up by at the Aurum PropTech level. Now, where the business collaborations happen is what we call as the Aurum Ecosystem Collaboration, right? Where you know, we bring in, let's say, all the marketing excellence across different businesses, and we kind of provide a platform where all the leaders, marketing leaders of all the businesses can come and meet each other, discuss you know, you know, joint strategies and exchange notes, et cetera, right? I am just taking marketing as an example, but the same applies for you know, tech and engineering teams, the product teams. And what we do apart from that is to you know, have certain initiatives, right?
Which are, you know, engaging with the business heads of each of these companies to bring together joint go-to-market strategies. There are initiatives on how we, you know, how we make best use of the data that we are, you know, collecting and building as we build the individual businesses together. And there are a lot of things which happen on the software side, which is to, you know, recognize great talent across all different businesses, right? So when we give them a common platform for, you know, recognizing some of the best performances and the excellence in various fields across the different businesses, right? So there's a different level of, you know, motivation that percolates all the way down to all the businesses, right? So that's where the collaboration starts happening, right?
But at an operational level, at the business operations level, you know, all the individual businesses take care of their day-to-day, you know, kind of activities themselves, right? So that's, that's broadly how our, you know, kind of model or the operating model that I, illustrated, works.
Got it. Another question was mainly that because we have a couple of businesses catering to similar business models, for example, BeyondWalls and Aurum Analytica are doing something similar in terms of residential sales or HelloWorld and NestAway being similar in terms of models pretty much. Do we see consolidation of businesses happening in the future?
Actually, they f or example, NestAway and HelloWorld, right? So they cater to two different renting needs, right? So, HelloWorld, for example, caters to shared accommodation, co-living, whereas NestAway predominantly focuses on family living, right? So there is a small overlap between, you know, the target customer segments, but the supply side is fairly different, right? So, in that way, yes, you know, some of the synergies and, you know, operational efficiencies will arrive out of the customer side and the GTN side between HelloWorld and NestAway. Between BeyondWalls and Aurum Analytica, again, the operating models are different, right? So end of the day, yes, we are addressing a developer's need to take their product to the market, which we call as a distribution.
But the ways and means that we do, is different because, you know, the developer community is also not a homogeneous community, right? So one, there are geographical segments, but beyond that, there are also different needs that developers have across the distribution needs, right? So which is some, you know, some developers may need just the, you know, the digital marketing side of it. And whereas there are certain, developers who actually give AOPs and mandates for, you know, tech-driven companies like BeyondWalls to, enable the transactions completely, right? So the business models are different, though, you know, kind of the life cycle of, the distribution may seem similar across the two businesses.
Got it. Thank you.
Thank you. A reminder to participants w ell, actually, that was the last question in queue. I would now like to hand the conference back to Ms. Vanessa Fernandes for closing comments.
Thanks, Rayo. Thank you everyone for taking the time out to join us on this call. We wholeheartedly appreciate your continued interest in Aurum PropTech, and we look forward to having you in the next call again. Have a good evening ahead.
Thank you very much. On behalf of Aurum PropTech Limited, that concludes the conference. Thank you for joining us, ladies and gentlemen. You may now disconnect your lines.