Please note that this conference is being recorded. I now hand the conference over to Miss Vanessa Fernandes, Investor Relations, Aurum PropTech. Thank you. Over to you, ma'am.
Thank you, Robin. Good evening, everyone, and a warm welcome to the Q1 FY 2024 earnings conference call of Aurum PropTech Limited. Joining us on the call today, we have Mr. Ashish Deora, Founder and CEO of Aurum Ventures, Mr. Onkar Shetye, Executive Director, Aurum PropTech, Mr. Kunal Karan, CFO, Aurum PropTech, Mr. Hiren Ladva, EVP Investments, Aurum PropTech, and Mr. Jitendra Jagadev, Founder and CEO of NestAway. Today, we shall go through our performance for the quarter gone by, our future outlook, and a special segment on NestAway Technologies, the latest acquisition in our portfolio. Before we dive into the details, 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. We shall now start the call with Mr. Ashish Deora, our Founder and CEO.
Thank you, Vanessa. Good evening, everyone. The first quarterly earnings call under Aurum management was hosted in July 2021. It is two years today as I participate in this ninth quarterly call of Aurum PropTech. Over the past two years, we have been committed to bringing technology to real estate sector, giving rise to what is now widely recognized as the PropTech ecosystem. Our team's unwavering belief and focused execution has led us to exponential and consistent growth. At Aurum, we have always emphasized EBITDA as a key metric, ensuring that our growth is complete and profitability. We maintain a constant focus on unit economics. As a result, we are EBITDA positive for the third straight quarter. With a sharp focus on execution and unit economics, our teams are driving each product and each business towards hyper revenue growth.
We are proud to announce that HelloWorld, our co-living business, has touched an ARR of INR 100 crore as compared to INR 22 crore one year ago. Further, we are also seeing great traction with Aurum Analytica. I would now like to speak about a special and significant milestone during this quarter. We have acquired NestAway, one of the largest PropTech brands in India. Our growth journey began in July 2021, and since then, we have acquired seven businesses in the past 24 months. Each acquisition has been strategically aligned with our goal of addressing the unmet needs of technology, capital, and services within the real estate value chain. We believe that we now have all the essential products in our ecosystem to benefit consumers, developers, and intermediaries. I would now like to share how we have already commenced NestAway's restructuring journey.
In the past 2 weeks, our team, led by Jitendra and Ismail, have initiated the process of cultural transformation with an emphasis on unit economics and customer obsession. We have optimized operations by downsizing our presence from 14 cities to six cities. We have streamlined the team, reducing its size from 350 to 195, and reducing the monthly salary expenses from INR 2.7 crores to INR 1.3 crores. We aim to transition NestAway to become a lean and flat organization, similar to our other Aurum businesses. These steps have been taken with the objective of being profitable at NestAway by the year-end. As soon as we are profitable, we will take NestAway to hypergrowth in 2024 and 2025. Later on in this call, Jitendra will provide further insights into the rental management business and NestAway's role.
I would like to state that integration of tech, capital, services, and data, enhanced by our entrepreneurial and strategic mindset, is strengthening the Aurum PropTech ecosystem with each passing month. To conclude, I would like to share some of our internal targets for the fourth quarter, that is January, February, and March 2024. First, we will achieve INR 100 crore of quarterly revenue, which will make Aurum PropTech a INR 400 crore run rate company. I repeat, a INR 400 crore run rate company. Second, we will restructure and make NestAway profitable. Third, needless to mention, that we will be EBITDA positive. Thank you, everybody. Over to you, Onkar.
Thank you, Mr. Deora. Good afternoon, all. The Aurum PropTech ecosystem is structured under technology, primarily income, encompassing enterprise tech, services, encompassing consumer tech, and capital, focusing on FinTech applications for real estate. M ap across the real estate value chain of development, monetization, and consumption. I would like to inform you that Aurum PropTech's integrated ecosystem now collectively boasts of 13+ products and services, 80,000 home buyers, INR 2,000 crore+ GDV, 520 SaaS customers, 4,400 RaaS customers, 7,500 channel partners, 600+ real estate developer relationships, and a presence in 17 cities across the globe. During Q1 FY 2024, Aurum's business focused on improving unit economics through cost optimization and efficiency drives.
Some of the key highlights include: HelloWorld gave to an ARR of INR 83.3 crores, with 11,195 live beds and 29 new properties it onboarded in Q1 2023. There was a 19% growth in quarter-on-quarter revenue numbers, while the occupancy stood at 74%. BeyondWorld stood at an INR 49.93 crore revenue. Do became the fourth top-ranked real estate CRM globally, having seventh ranked in the easiest to use category. Aurum Analytica serviced 116 projects and achieved an RRR of INR 24 crores per annum. Through its analytics platform, it identified 33,756 prospective residential buyers across the country. Integrow Asset Management successfully exited an opportunity with 30% IRR. We also went on to add three new products in our portfolio, Aurum WiseX, YieldWiseX, and TheOfficeMonk.
Aurum WiseX is a digital distribution vertical for real estate investments, which leverages technology to offer risk-adjusted institutional-grade investment products. YieldWiseX is a neo-realty investment platform that aims to democratize ownership of commercial real estate, structured data possibilities. It is a transparent, reliable, and technology-driven approach, offering its investors end-to-end, hassle-free investment management platform that provides expertise and convenience. Aurum WiseX generated an INR 70 lakh revenue this quarter with a GDV of INR 13 crore and engaged 75 investors on its platform. The investor reach has now widened to 50,000 identified investor dataset. The platform clocks 7,000+ website sessions per month. TheOfficeMonk is a B2B SaaS product to digitize commercial real estate portfolio and enhance the experience of tenants, offering three core modules: Core, a solution for landlords and operators to track their lease vacancies, manage their property accounting, and streamline tenant communication.
Ops, a mobile solution for operations teams to streamline visitor management and digitize maintenance activities. Circle, an app for employees working in office buildings to better manage their relationship with office and people they share it with. Our target market is co-working spaces, offices, and head parks. For our new products, Aurum InstaHome and Aurum KuberX, we focused on getting the model right on low ops and high on scale, getting the tech right, features for all stakeholders, and getting the experience right, improving turnaround times. Before I hand over to Mr. Jitendra Jagadev, founder of NestAway, I will briefly take you through the financial results of quarter one, FY 2024. Our revenue from operations per quarter has increased year-on-year by 202% to INR 44.16 crore, as compared to INR 14.64 crore in the corresponding quarter of the previous year.
The total income of the quarter was INR 47.71 crores, as compared to INR 15.72 crores in the previous quarter, up by 203%. EBITDA for the quarter was INR 1.8 crores, 3.8% of the total income, as compared to a negative EBITDA of INR 5.69 crores in the previous year. Loss for the quarter was INR 16.12 crores, as compared to an INR 8.70 crores in the previous year. Our SaaS and RaaS revenue for the quarter were INR 5.72 crores and INR 38.44 crores respectively, as compared to INR 5.11 crores and INR 9.53 crores, respectively, in the corresponding quarters previous year. We will continue to work on increasing efficiency and enhancing consumer experience in our PropTech businesses.
With this, I would request Mr. Jitendra to take us through the NestAway plan.
Thank you, Onkar. Good evening, everyone. The rental market in India is a significant and lucrative sector, with approximately INR 2.4 crores renters in the top 20 cities. Rent expenses typically account for around 30% of a renter's wallet share, making it a substantial portion of their expenditure. At NestAway, we recognize the immense potential of this consumer market. In the next two quarters, our focus is on implementing initiatives to reduce costs and drive profitability. We are well-positioned to capitalize on the tailwind effect as renting rates have experienced a substantial 25% jump across major cities due to factors such as increased interest rates, and a surge in demand post work-from-home era. Additionally, buying a home has become more challenging for the younger generation due to lifestyle preferences, saving habits, diminishing emotional attachment to property, and rising housing inflation.
This trend indicates that our target market share will increase along with the size of the market itself. Our immediate priority is to stabilize the business and achieve profitability within the next two quarters. To achieve this, we are focused on improving operational efficiency across all aspects of our operations. We aim to simplify our customer offerings, ensure scalability and sustainability. Our team is committed to high-performance output while adhering to our company values. One of our key initiatives involves optimizing service structures, as there is a significant gap between revenue and employee headcounts, and there are associated salaries across different geographies and verticals in call centers. Another area of focus is reducing direct costs, particularly operational expenses related to property management and maintenance services. We believe that by transforming these services from call centers to office centers through simplified offerings, we can enhance overall profitability.
Additionally, we aim to increase efficiency in performance marketing by leveraging low customer acquisition cost, tax channels, and accompanying high tax channels. Optimizing our technology stack is also crucial to eliminate inflated technology infrastructure costs resulting from stale data or traffic. To achieve profitability, we must implement measures such as reducing unnecessary expenses, streamlining processes, automating tasks, and renegotiating contracts more effectively with our vendors. As part of our cost optimization strategy, we have decided to cease operations in Visakhapatnam, Kolkata, Ahmedabad, Kota, Jaipur, Mysuru, Coimbatore, and Indore. By aligning our focus and implementing these initiatives, we are confident in our ability to make the rental markets in India more profitable for lessors and tenants. I will now open the call to Robin to open the floor for the Q&A session. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use hand hands while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Faisal Hawa from H G Hawa and Company. Please go ahead.
Sir, congratulations for a good set of numbers. Can you just refer to page 18 of your slide, where it says that HelloWorld is now a revenue of around INR 21 crores, and there is a note saying that these businesses were not consolidated under Aurum Properties. Does this mean that this has not been included in the revenue of Aurum Properties?
. Let me just take that question. And thank you, Faisal, for your query and interest in our company. Regarding your question, if I refer to that chart, the year-over-year percentage there we are referring to the consolidation part, right? Just to clarify, HelloWorld, we started consolidating from 15th of June of 2022, right? So if I were to compare Q1 of last year versus Q1 of this year, is where we are trying to clarify that year-over-year comparison is only at the consolidated level. Okay.
This year it has been consolidated?
Yes. This quarter, at 15 June last year itself onwards, we have been consolidating Hello.
again, you say in the, you know, in the second distinction, it's not applicable because the composition of the portfolio varies across the two quarters. What is the variation? this is as regards of Aurum Analytica.
Yeah. Last year, as you recall, almost every quarter we had one or the other acquisition getting consolidated into our books. Hence, when we do YOY comparisons at the consolidated level, we are comparing the Aurum Properties reported numbers, which may not include, let's say, Aurum Analytica in Q1 last year, because it was not consolidated, right? When I do like to like business comparison of Aurum Analytica in this particular slide, it's INR 36 crores, which has gone to you know, 5.22x and 4.2%. That means, compared to INR 6 crores of revenue in this quarter versus last year's quarters, irrespective of whether it was part of Aurum or not, the growth has been 4.22% on the like-to-like business, right?
Without consolidation. Idea is to give you a sense of how the intrinsic business itself has grown on a quarter-to-quarter basis.
Got it. sir, what is our fixed cost across all the companies? can you give a % of what would be our B2C business, you know, where actually consumers who, you know, come to the net and, you know, use our services?
Hello, this is Kunal. I will take this question. The fixed costs for the quarter will be around INR five and a half crores.
across all the companies?
Yeah.
This would definitely not include, NestAway, right?
No, no. NestAway has not come into the results right now. If our results, the segment results, we have given that corporate cost, so that number is INR 5.5.
That is our fixed cost every month or every quarter?
Okay, yeah.
Is this every month or every quarter?
Every quarter.
Okay. sir, what would be the improvement that we, like, NestAway could give our revenues in Q2?
Sir, you have given the number.
As of now, this is Hiren, I mean, for Q2, again, we'll come back with a forecast and the overall number, not just for Q2, but the entire year average. NestAway specifically, if I can, without giving you the exact numbers, before acquisition itself was doing a average run rate of around INR 2.5-3 crores on a monthly basis. Based on that, we can do a projection. However, at the moment, as Jitendra has already called out, so has Mr. Deora called out, our focus for the next six months at least would be on to, you know, kind of focus on the unit economics of the business. Then we'll take up the growth focus from 2024 onwards.
Sir, we are on record saying that we will now be developing some proprietary products also of our own. What is the progress on that? Any initial revenues coming from that? That's one. Secondly, you are also, you know, going to do something with the fractional ownership, and, you know, is there some kind of clarity there from SEBI or any other authority which you check on this?
Hello, Mr. Hawa. This is Onkar here. I'll take these two questions and also add to the earlier question. As you rightly pointed out, what is the composition of our business with respect to B2C and B2B? We have a 40% of our business coming in from B2C as of now. With the addition of NestAway, we expect this to go to a 60%-70% in terms of a revenue coming in from B2C businesses. We see large opportunities in the B2C space, and that is where we also are looking to pivot the business at. With respect to proprietary products, there are two products that we are engaged with presently, Aurum InstaHome and Aurum KuberX.
Aurum InstaHome is focused on the largest opportunity area in the real estate space, which is secondary real estate. It works on a platform strategy of generating supply for the secondary real estate market, onboarding enough partners to facilitate the fulfillment of this secondary supply, and then finding enough buyers to make sure that we have a matchmaking happening between supply, demand, and fulfillment. We have the automated valuation model launched for Aurum InstaHome. The automated valuation model triangulates data from three sources: registry data, market listings, and local intelligence. It goes on to predict an estimate for an apartment that the seller is wanting to sell. If he is aligned to the value of the apartment, he will further go on to give a mandate.
That mandate will further be sent out to the channel partners who are subscribed to our partner app and who will go on to sort of sell, help us sell these apartments. The AVM is live in 225 locations. The partner app has been launched in June. We have received 150+ downloads and 66 active channel partners who are working on this presently. In addition to this, we also have Aurum KuberX, which is a loan origination software that is targeted on loan recommendation for home finance seekers, and also further going on to fulfill this home loans for the loan finance seekers.
We have, between both the products, we have a revenue of INR 30 lakhs recorded in the first quarter of this year. These products are rolled out very recently in the market, and we will further go on to optimize its unit economics and work on scales in a very ops-like model. Coming on to your other question on the fractional ownership space. The fractional ownership space has gotten some clarity from SEBI. They have come in with a few papers and recommendations. Our strategy on the fractional ownership space was looking at how do we approach this? Do we approach this from a real estate point of view?
Do we fractionalize real estate, or we look at it from a fractionalization of financial instruments that are backed by underlying real estate? We have chosen the financial instruments way. Here are two cornerstones of the fractional ownership strategy are between the Integrow AMC, Integrow Asset Management Company, and Aurum WiseX, where we will have fractional instruments created at Integrow AMC, backed by real estate.
In the corporate real estate space and also in the residential real estate space. Aurum WiseX will pivot to a tech-driven distribution network of high value retail investors looking on to invest into this space. Prem, would you like to add anything to the fractional space?
Thanks, Onkar. Just to elaborate on the regulation on fractional. Yes, SEBI has, at the moment, only released a consultation paper, which has enabled a very healthy debate in terms of, you know, what should be the approach towards fractional ownership in India. We are awaiting the final regulation to come in. RMN, who heads the business from our end, along with Mr. Ram Yadav from Integrow, both have contributed to our inputs from our side in terms of how we see or what requests from our side in terms of what should be considered in the regulation. We'll await till SEBI comes back with the final regulation with respect to this matter.
As Onkar mentioned, there are other opportunities in the capital play, as we call it, within PropTech, which Integrow and WiseX are pursuing at the moment. The opportunity is quite wide, and under WiseX, as Onkar mentioned, we have, we are actually leveraging the tech platform that we had built for investors, outreach and distribution of such products. We are actively distributing those products. On the other side, Integrow, along with its AIF and a few other developments that they are working in terms of building more products in this domain, they should be launched in the quarter two of this financial year.
Oh, thank you so much for answering my questions so well.
Thank you, Mr. Faisal. Thank you always for your interest.
Thank you. Participants who wish to ask a question may please press star and one. The next question is from the line of Darshan Jhaveri from Crown Capital. Please go ahead.
Hello. Good evening, sir, thank you so much for taking my question. Sir, you had an ambitious target of, you know, getting to nearly INR 100 crores revenue by quarter four. I had two questions regarding that. Like, what part will drive it the most, what kind of profitability do we expect? Maybe not if not this year, maybe next year, would we be breaking even on our not on EBITDA level, but on PAT level? Those are my two of my questions. Thank you.
Hello, Ashish, INR 100 crores is a bold ambitious target that we have set up for ourselves in next three quarters. I go back to quarter one of last year when our revenue was INR 14 odd crores, and we had set up a target of INR 50 crores for ourselves. Now with a revenue of around INR 50 crores, we have set up a target of INR 100 crores, with the same confidence that we have delivered the earlier numbers. We believe that we believe that most of the businesses are in the process of delivering exceptional numbers. Most of the businesses, most of the products are looking at delivering 2x of their current numbers.
As you know, there are always in business, there can be some that goes a little bit up and down, but we are expecting a all-round growth when we project a INR 100 crore number. We have some details around that, which we will share with you in the coming quarters. As far as the profitability question of yours, our focus initially was to kind of have unit economics positive at all companies, at all products. We are slowly but surely achieving that. Obviously, the next target after that is going to be, become profitable and become at the across profit level as well.
At this stage, with this INR 100 crore of the projection, it will be difficult for us to share anything more than that at this stage. Two of the seven businesses I have been told now is even now PBT positive. While most of the businesses are positive at the EBITDA level, two of our seven businesses is PBT positive even now. Look, I think for last eight or 9 quarters, we have been saying this, that we want to be very sure about unit economics and be positive and profitable in all businesses, and we have demonstrated that, and we will continue to demonstrate that.
Okay. That helps a lot. Sir, out of our seven businesses, you said two are PBT positive. Other businesses, I again, like, don't want any range specifically because it's a very new place. What kind of rough range do you think will they take? Like, maybe based on your experience, it might take 1 year or maybe more. Like, how we are seeing growth in different avenues? Just like a rough number that could help us, like, not in terms of any specific revenue or profit. Just like, how much time would you take to, you know, get to profitability? Nothing specific.
Well, our internal target is that all businesses in next six quarters should be profitable. Again, sometimes you start putting a little bit of growth lever, and the moment you put growth, then you might have the EBITDA positive, and you might still defer the profitability by another quarter. We are very closely with every month, we very closely look at all the 10, 11 products and companies that we look at. At times, we make a decision that, okay, this is something that is ready to grow for next 3 months because all the financial parameters are under control, and some where the growth should be slowed down.
That, to my mind, is a regular exercise, a monthly exercise that we do. But to give you a very ballpark, I think six quarters should be, is our internal target and should be our fair target.
Oh, okay. Thank you. One more last question. I just wanted to understand a bit more about how would the depreciation maybe, you know, flow over the coming years, right? Because it has been slightly increasing quarter-on-quarter. You know, maybe like it's going to keep on increasing because you've been acquiring business. How would that just, you know, grow? That's my last question. Thank you so much, sir.
This is Kunal. I will take that question. Look, the depreciation mostly comes from 90% of the depreciation comes from one entity that is HelloWorld Technologies. That company as a business model, they have to onboard premises in long-term basis. That is where the depreciation cost comes in. As in when we grow, the depreciation will, and we onboard more properties to be lower revenue, increase the number of debts, the depreciation will definitely go up. For the existing space that we hold right now, they are mostly new and into the next 2.5 years.
If we take a five-year period for each of these properties on an average, so maybe two and a half years, where the depreciation will go up and then come down.
Okay, perfect. Thank you so much for answering all the questions. All the best to all of you. Thank you.
Thank you. We have the next question from the line of Rahul Jain from Dolat Capital. Please go ahead. Rahul Jain, the line for you has been unmuted. You may proceed with your question.
Yeah, absolutely. Firstly, you know, congratulations on this transaction on NestAway.
Sir, sorry to interrupt, but the line for you is not very clear. We request you to please use the handset while you're speaking.
Hello, is it any better?
Yes, this is much better. Please go ahead.
Yeah, sorry for that. I would say my question was regarding the NestAway business. We have shared some plan in terms of how we plan to bring down costs and all. Just to understand, since we have aspiration to grow this business in FY 2025, how you see this shaping up? Do you see this is a much larger piece of the business which can be scaled versus some of the other transactions that we have done in the past? How you align this reduction in cost and eventual growth, given the opportunity size is much larger in this space?
Rahul, this is Ashish here. NestAway definitely has one of the largest potential of all the businesses that we own and all the products that we run. We believe that it is set up at a very interesting juncture, where first we are reducing the operations, streamlining the operations, changing the culture of the organization. Once we are confident that we have the unit economics in place, we are going to grow it back in a hyper-growth mode, which the company has the capacity to get back to. For some specific details, I think, Jiten, would you want to add a few things to the question of Rahul?
Hi, Mr. Rahul Jain, Jiten here. Actually, at NestAway, as I mentioned earlier in the call, like I was telling, it's one of the largest part of the business actually, in terms of the wallet share of every person that deploys his money. Most of the money, actually, personal wallet share goes into rent. We have almost 250 crores people who actually pay rent every month in this, in the market. Potentially, it's a huge opportunity for us. How we are trying to set it in the next term is like first 2 quarters, we are trying to build a minimalistic body, where we are telling that it's profitable.
We are breaking even and becoming profitable, and then focusing on optimal growth channels to make the business grow at a very significant pace, but not being at a loss. Like, with the loss will be less, but it will be growing at a very significant pace because the opportunity is very high. That is a plan for us, like, now the immediate two quarters is technically focusing only on profitability, but later on it's a big scale game. We are focusing on the scale of that.
Yeah, thanks a lot. Just one question, what is the current Revenue Run Rate and profit run rate that we expect in this business? Where it should reach by the time all this business corrections are done with?
Jiten, would you like to answer that?
At this point, during our acquisition process, what, we have called out at this point is around, INR 30 crores is the ARR, like INR 2.5 crores is a monthly revenue, that we are seeing in the business, because this is like the pure revenue that comes to them, like it is, post-taxes. INR 2.5 crores is per month, and INR 30 crores is annual revenue. The losses, we are trying to make it like zero, but at this point it is around INR 2.5 crores. We are at -INR 100 million. It should be by this, 2 quarters, it should be zero. That is our plan at this point. In the future, we have, done some good plans.
I think over the next few quarters, we'll share the, like the next three years, how we are planning to grow NestAway after that.
Right. In addition to what Mr. Jiten said, Jitendra said, your earlier question, we at Aurum believe that there is a larger opportunity at Aurum PropTech that lies in with NestAway. When NestAway goes on to address the rental real estate problem or the opportunity in India, it provides us a good opportunity to address the secondary real estate or the resale market. NestAway will be able to give us intelligence on apartments or units which are monetizable in form of rental yields in various locations across the country. That sort of gives us good intelligence on supply available for resale and then match an appropriate demand for those apartments.
Right. just one clarification on what Jitendra said. What I heard is INR 2.5 crores is the revenue monthly run rate, and I missed the loss number. I think somewhere you said INR 100 crore EBITDA loss run rate at this point. Was that the right number?
No. It is like, before acquisition, just INR 2.5 crores EBITDA loss per month. It's 100% EBITDA basically about the revenue side.
Okay, understood. This you said should become zero by end of next quarter or the current quarter that we are?
Next two quarters. We are looking after, yeah. Yeah.
Right. Okay, then, next question was related to this SaaS business. I mean, given that we have a very large growing opportunity, somehow this part of the business has not been scaling up for us. What precisely you think, how one should see about this business in terms of both potential as well as profitability?
Rahul, Hiren here. Let me take that up. In SaaS business, we predominantly have two products, both of them have grown quite well within the India market. Our next plan is to take this product outside India, which the action for which has already happened, wherein GCC has been our first port of call in terms of the next growth frontier for both these companies, we are taking this company jointly in a combined and efficient manner, right? That's the immediate growth trajectory. Both of these products have a strong potential in the entire GCC market.
We spent a couple of quarters to assess the market, the potential, the need, and where or what should be the sweet spots that we should focus on there. That's the immediate, you know, growth potential that we are seeing.
Last bit on the outlook that we shared is achieving INR 100 CR kind of a quarterly run rate versus 44 odd growth we have right now. This baking in some more fresh transaction that could happen in the next six months, or this is based on whatever we have in our hold right now?
As Mr. Deora mentioned, one, we have some internal workings around this, but yes, we'll come back to you in a quarter or so on that. At the moment, no specific number is allotted to any additional, you know, or a, or a new venture coming into the ecosystem. I think we believe with our existing portfolio, which we are, we are set to, you know, achieve the INR 100 crores mark on a quarterly basis by Q4.
Understood. That's it from my side. I'll come back in the queue if I have.
Thank you. Thank you, Mr. Rahul.
Thank you. Ladies and gentlemen, to ask a question, you may please press star and one. The next question is from the line of Gaurav Somani from Korman Capital. Please go ahead.
Thank you, sir, for the opportunity. I'm new to this company, so please pardon me if my questions are repetitive. I wanted to know from a three-year horizon or something. You have a list of businesses, the top three businesses which probably contribute to 60% of the revenue. If you can walk us through, what is the revenue model or the revenue recognition model and return metrics for each of these businesses, would be quite helpful to understand.
This is Hiren here again, Gaurav. Thank you so much for the interest in our businesses. I think if I go on explaining the entire business model, it will take a lot of time, but in brief, I'll try to do the justice as much as possible. At the moment, HelloWorld has been the highest contributor of our business. Very simply put, it's a shared living, co-living business. Incidentally, Jitendra has been a co-founder of that business. He's running the business along with Ismail and very successfully so, right? As Mr. Deora mentioned, from a INR 38 crore ARR that we had last year, we are now at INR 100 crores.
The unit metric, or you could say the unit of measurement here is either the number of beds or the rooms that we let out. As of today, we have around 10,000, 11,000, stand corrected. 11,000 plus beds available in the business from a co-living point of view, across around 15 cities. We focus on a specific age bracket of consumers, which is students, mostly, even including undergrad students, who are, you know, who are away from their homes for the preparations of entrance exams, to fresh professionals who coming to metros, who work for, you know, working their first employment or first job. Right.
We provide, a hygienic and, standardized accommodation for all of them.
Sir, I'm just looking for the how do you recognize revenue and what is the return, say, ROE, or which you can expect in the business in the next two years?
For this business, it's a prepaid revenue that we have, right? It's the rental revenue that we recognize. It's a prepaid revenue. Is that the question that you are asking for?
Yes, sir. The rent paid by the students is directly shown as revenue, right?
Yes.
okay. What % of that revenue comes as, is the service, charged for that? Because they'll be paid.
There is a range. Obviously, there's not a one answer, but typically it can vary from 20%-30%.
20%-30%. Okay. When do you expect, Actually, my question was the top two , three businesses, what is the ROE profile of this business next year? If you can help me with that.
You mean to say ROE, right?
Yeah. Whichever metric, ROE, ROC, whichever you internally use. Basically, I'm looking to understand what would be the ROE profile of the company. Basically, if you can help me with the top two, three businesses, we'll get a rough sense of it.
Yeah. I would think that number close to 25%.
Okay. Okay. Sir, what is the current cash on our books?
Kunal? INR 30 crores.
INR 30 crores. Our monthly burn rate is roughly around, right? Cash burn rate, monthly cash burn rate, sir.
It will be around INR 3 crores.
Okay. Okay. Do we have any acquisitions, do you expect to do any acquisitions like one-two years, or do you think our portfolio is complete at the moment?
From a strategy point of view, we keep on meeting exciting ventures and startups that strategically fit into our ecosystem plans. At the moment, it's difficult to say yes or no to that, but yes, we keep on actively meeting exciting founders who can help us build the ecosystem. As soon as we have an exciting prospect to add on to our portfolio, definitely we'll come back to the market with us, with relevant information on that.
Sir, one last question. When you go to the INR 100 crore quarterly, INR 100 in Q4, will our fixed costs broadly remain the same as in Q1, or how much we expect them to go up?
Just to understand your question correctly, because there's some static in the mix. You are asking whether the fixed cost in our revenues will remain the same when we reach 100 crore mark. Is that the question?
Yes, sir.
We remain more or less the same. Like I said, it is INR 4.5 million. It can go maximum to INR 5 million. It will not be on that.
Great, great. Thank you, sir. Thank you, Nishu Alagh.
Thank you.
Thank you.
The next question is from the line of Utkarsh, from Infinity Alternatives. Please go ahead.
Hi, good evening. Congratulations on the result. Just expanding on the last question as well. I basically wanted to understand what the unit economics look like today and what they would look like at a profitable scale, especially in your services verticals, the SaaS cash.
On SaaS point of view, we have, as I said, two products. One of them is already profitable, has got a double-digit profitability, not just at EBITDA level, but at EBT level. The other product is a fairly younger product in terms of its age in the market. There, we are focusing on growth and expansion at the moment. That is still at a where the tech costs are pretty high. We expect this business to turn EBITDA positive over the next 4-5 quarters. That's the two SaaS products. In terms of RAAS, as I, as we had mentioned, one of the business is already profitable at EBITDA level, consistently has delivered profitability for three quarters, which is Aurum Analytica.
HelloWorld, which is a co-living business, we stay very close to EBITDA pro-profitability quarter on quarter with a conscious strategy of investing growth capital, keeping the profitability of the unit economics in mind. Having said that, at a unit level, where a unit could be a property, each of our properties are actually profitable after 10 to 10 months of their launch, right? That's typically the rate that we have. Which kind of goes on to say very simply that if we today pause or reduce or slow down on growth, we will immediately turn, you know, profitable in that business, right? That's the, you know, major part of our RaaS business from a top line and profitability point of view.
Just to talk all of as well, on a bed level, just so I understand. Each bed, what is some of the average revenue and average cost that you're incurring? On daily what.
I think, of course, I can take that question. Typically for HelloWorld, in an economy, if you consider it as a bed, then, 60% of the bed, the cost goes to the owner. The rest, 40%, will remain, where the 10% will go as the variable costs, like typically, which includes documents marketing and the field costs, like people who are engaged for the field operations. It's a hefty 30% contribution margin, at an economy, which could result if you remove the fixed cost. If you add the fixed cost, it comes around 14% PBT benefit.
Perfect. Thank you so much.
Yeah. Thank you. Thank you.
Thank you. The next question is from the line of Guneet Singh from CCIPL. Please go ahead.
Hi, sir. Thank you for this opportunity. I'm sorry, I might be repeating this question because I joined a bit late. I mean, we have seen rapid growth over the last 1 year in terms of our top line. I mean, what is your outlook for FY 2024 in terms of top line and bottom line? How do you see us in the next two, three years? When do you expect them to turn part positive? That's all I would like to understand.
Yes, Guneet, Hiren here. The question has already been asked and answered. Since we are short on time, I'll quickly, you know, revise that. We have announced that we are aiming for INR 100 crore quarterly revenue by Q4 of FY 2024. EBITDA level, we are already positive. On profitability, we don't have a specific number that we can give, but internally we are targeting our next quarters, it should be PBT positive. Next quarters.
All right. Thanks a lot.
Thank you. The next question is from the line of Devang Lakhani from Devang Management Private Limited. Please go ahead.
Good evening. My question was with growth in the sector, do we see any growth in competition? Currently, we do not see any competition near the PropTech ecosystem we are building. There is no other brand or company is building a proper ecosystem. There are individual companies. Do we see any major competition in what we are doing so that the market share isn't divided?
Yes, Devang, Hiren here, I mean. As you rightly pointed out, there is no like-to-like ecosystem in the PropTech sector being developed by anybody of the scale or the vision that we are having. We are happy if somebody will also pick up the mandate, because then, you know, the network effect will help us, our growth as well. At the moment, yes, no specific like-to-like comparison.
Yes, there are individual companies that we can relate to as competition, where we see not just, you know, kind of exciting interest from a market creation and market growth point of view, and that's where the rental business excites us a lot, and that's what Jeetu also, Jitendra also, you know, kind of elaborated when he was speaking, is the, you know, the entire rental market is a, is a big opportunity to be grabbed. We are seeing, and I would encourage you to look at how, you know, the kind of interest that has been generated in this segment with likes of Stanza Living and Zolo, and the kind of valuations they have been able to garner.
We expect the same level of interest, not just because of the growth prospects, but also given our performance, with much lesser capacity. We are doing higher revenues and better occupancies compared to some of the top players in this segment, right? I took co-living as just one example. Similarly, we are highly competitive against specific, you know, businesses within the PropTech sector. At the ecosystem level, we are not seeing a like competition yet.
Okay, thank you. That answers my question.
Yes.
The next question is from the line of Faisal Hawa from HG Hawa and Company. Please go ahead. Your line for you has been unmuted. We request you to please go ahead with your question.
Is there any thought within the organization to, you know, make a, you know, unified app which would incorporate all the services that we are giving within so many subsidiaries? Something like, you know, how Tata Neu has done.
Mr. Faisal, I think that's a very, you know, very active topic also in terms of a unified app or a master app. Various names you would, you know, kind of encounter for such for such a solution. Yes, there have been predominantly, you know, in India, except China, in most of the geographies, the super apps have not done so well. But to make them really do well, one, the entire ecosystem benefits to a relatively homogeneous set of users need to be created, right? When we see that happening, we will definitely aim to build that kind of an app.
When, yes, if we focus on, let's say, B2C as a, as a customer, there, yes, we are actually working on creating one, you know, single interface for all our partner or businesses, that could be offered to B2C customer. It would not be fair to put all the products in one single app where you don't have a similar target audience using the same app, right? We are approaching it from a very targeted, go-to-market strategy point of view.
In addition to it, Mr. Hawa, what we also intend to do is that an app is an outside-in strategy, where we are, you know, it's a full strategy where you want to have an interactive platform for, like you said, B2C customers. We understand that real estate is a very location-specific and a asset-specific business. The solutions that we have are spread across various locations and also spread across various stakeholders.
Applying a rather inside-out strategy, where data, which is two sets of data, one is asset data and the other is consumer data, is aggregated in the back end, and then we see how to join the data for a better revenue unit across the entire ecosystem.
In some part of the ecosystem, are you feeling the need to go offline? Like, Integrow is almost like an offline business. We don't see any kind of push towards going offline for any part of the business.
You rightly pointed out that real estate in India is, has a large component of offline operations, which requires human interaction and human touch. There are various parts of business where we have a pure tech, and then there's other parts of businesses where we have tech enablement. The offline modes where there's human interaction required, is tech-enabled. For example, Integrow Asset Management is tech-enabled, where we are understanding consumer behavior in a particular micro market, understanding the competition from a development standpoint, and then building BIs basis of that as to where is the best investment opportunity available in that particular micro market. We have a path to take it to a completely tech-driven ecosystem.
Considering the limitations of the business we are in, it will not be purely tech business.
Just like demon was a, you know, big figure for, you know, prepayment apps and, you know, UPI, et cetera, pay or pickup. Any kind of figure that, you know, you feel that could be, you know, a good one for people to adopt PropTech in a big way? Would it be, like, a very big moment in real estate, which could lead to that or, you know, something which can really, you know, get it to an inflection point?
There's absolutely moments where we are seeing more adoption of tech. That is not happening in a watershed moment like demonetization. There have been stages, there have been phases of various tech adoptions. Demonetization was definitely impacting tech adoption. COVID was another wave where tech adoption increased across all assets. Policies like RERA are also increasing tech adoption. We also have various initiatives like ONDC which are going to move a lot of operations onto tech adoption. To answer your question, no watershed moment has been envisaged, but there will be a stage-wise increase in tech adoption across the sector.
Okay. Thank you so much.
Thank you. That was our last question, ladies and gentlemen. I would now like to hand the conference over to Ms. Vanessa Fernandes for closing comments. Over to you, ma'am.
Thanks, Robin. Thank you, everyone, you know, for all, each of you who kind of participated today. We witnessed the highest participation over the past quarters. We truly appreciate your continued interest in Aurum PropTech, and we look forward to having you all in the next call again. Have a good evening ahead.
Thank you. On behalf of Aurum PropTech Limited, that concludes the conference. Thank you for joining us. You may now disconnect your lines.