Ladies and gentlemen, good day and welcome to Aurum PropTech Q3 FY 2021-22 Earnings Conference Call hosted by DAM Capital Advisors Limited. As a reminder, all participants' lines will be in the listen-only mode. There will be an opportunity for you to ask questions when the presentation concludes. Should you need assistance during the conference call, please signal for 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 Mr. Anmol Garg from IIFL Finance. Anmol, hand over to you.
Yeah. Hi. Thank you, Zaid. Good afternoon, everyone. On behalf of DAM Capital, we welcome you all to Q3 FY 2022 conference call of Aurum PropTech Limited. I take this opportunity to welcome the management of the company represented by Mr. Ashish Deora, Founder and CEO of Aurum Ventures, Mr. Srirang Athalye, President, Aurum Ventures and Director of Aurum PropTech Limited, Mr. Onkar Shetye, Executive Director of Aurum PropTech Limited, and Mr. Kunal Karan, who is the CFO of Aurum PropTech Limited. I will now hand over the call to Mr. Srirang for his opening remarks. Thanks and over to you, Srirang.
Thank you. I'm Srirang here. Good afternoon, all. I thank everyone for joining our Q3 FY 2022 earnings call today. This is our third quarterly call as Aurum management, and I'm glad to have all of you once again on this call. As I mentioned last quarter, we, Aurum Ventures, are a new age technology-driven real estate company. Aurum as a group is a value investor with a focused approach on long-term investments. At Aurum, we focus on investing in businesses having potential to disrupt the industry. We have a passionate and out-of-the-box approach to explore untapped opportunities, which will enhance value for our stakeholders, including customers, capital allocators, investors, society at large, and our own team. Successful and quick turnaround is one of our key strengths, which we have achieved over years through an efficient and effective use of capital.
We will continue to focus on building products and services in real estate and in PropTech. Now I will hand over the call to Mr. Ashish Deora, Founder and CEO of Aurum Ventures, to elaborate more on PropTech industry and how well we are poised to grab the opportunities. Over to Mr. Deora, please. Thank you.
Thank you, Sri. Welcome, everyone, and I'm pleased to engage with all of you once again. With our interactions over past two quarters, we have tried to communicate that as a company, we are taking steps to digitize and democratize real estate sector. In this quarter, we have walked few more steps towards creation of an integrated PropTech ecosystem. We are witnessing significant transformation in PropTech globally, and we are keeping a keen eye on how to bring massive transformation to real estate sector through Aurum PropTech. I would like to now deep dive on the thesis behind our recent acquisition of Grexter Living, co-living company based out of Bangalore. We here at Aurum PropTech believe that real estate is undergoing a fundamental business model change enabled by digitization and the growing need of shared living.
A redesign of built out spaces is important in a post-pandemic era, where consumers are evaluating to move to properties which can be scaled up and down on basis of their demand. This would mean that property owners would need to provide on-demand, customizable, and scalable access to spaces, amenities, and services. While the traditional real estate approach sees real estate as a product, we at Aurum PropTech believe the real estate as a service, which we are calling here as RaaS, will keep increasing its market share in near future. RaaS in living or co-living would mean to be customer-focused by providing a space that offers amenities, flexibility, scalability, and a sense of community that keeps users engaged. Over last couple of quarters, we have been on an inorganic growth journey through acquisition of SaaS products like Sell.do and TheHouseMonk.
Through Integrow and now Grexter Living, we are bringing the synergies of using our own SaaS products and providing real estate as a service. We believe that shared spaces and collective living will become the new normal. Multiple research reports in India and outside India talks about exponential growth in this segment. Last quarter, we acquired rental management platform, and this quarter we have acquired a co-living company. This is another solid step towards achieving our objective of creating an integrated PropTech ecosystem. I will like to now hand it over to Onkar, Executive Director Aurum PropTech, to speak about our acquisitions, their synergies and our other initiatives. Thank you so very much once again.
Thank you, Mr. Deora and Mr. Athalye. Thanks to all investors and participants for taking time and joining our call today. I would like to focus on updating you about our acquisitions and what we envisage to do in the coming quarters. As you all know, over the last three quarters, we have done three acquisitions and the fourth one in this quarter. First was 51% stake in K2V2, a Pune-based software technology firm. K2V2 was a pure SaaS player with a flagship CRM product, Sell.do. We have realigned their business model and introduced a broker aggregation platform, Beyond Walls for Brokers. Beyond Walls helps real estate channel partners and companies digitally launch products on its platforms and drive velocity, leveraging the channel partner network.
It has a subscribed base of real estate channel partners registered on its network who are provided with multiple benefits like marketing collateral, digital help to generate leads, real estate knowledge and trends, data and technology tools. The platform aims to build an engaged channel partner network that is rated, reviewed and certified to be the best at real estate selling. The promise to channel partners is to help them grow their businesses, while the promise to developers is to drive sales velocity. Developers who launch their products or projects pay launch fees to the platform for project launch and are then billed on per transaction model for all transactions done on the platform. Brokers work on a freemium or a subscription model to access special features and are also a part of loyalty program. The platform gets paid per transaction closure.
Beyond Walls for Brokers was launched as a pilot in Pune and has got a good response. With the addition of this product, we have been able to scale up the revenue from INR 18 crores ARR at the time of acquisition to INR 27.2 crores ARR in Q3 2021. This quarter, we look further to launching this platform in other cities like Mumbai, Bangalore, and Delhi. Second was Mumbai-based asset management company Integrow Asset Management, where we invested 49% for a value of INR 10 crores and INR 15 crores into ventures.
We have aligned Integrow's business model in line with K2V2 and THM, TheHouseMonk, wherein K2V2's and TheHouseMonk's SaaS products provide demand supply real estate data intelligence, and their tech platforms provide control on sale, lease and monetization of real estate projects via Beyond Walls, Grexter Living, and hence control on certainty of investment return. Thus, it makes a solid proposition for a data-driven investment asset management platform. Third, recent one is Monk Tech Labs. On December 27th, 2021, the Board of Directors of Aurum PropTech approved the acquisition to effectively hold 51% of share capital of Monk Tech Labs Singapore. TheHouseMonk is their flagship product for an aggregate concentration of $2 million. The deal is a mix of debt and equity infusion of $5 million in THL. It is a B2B SaaS platform company focused on rental management and real estate.
The investment is in line with Aurum PropTech's strategy to create an integrated digital and technology ecosystem focused on complete value chain of real estate. THM has an end-to-end SaaS platform to manage real estate with four products, 3Core, a property management system for portfolio management, 3Ops, operations and management suite, 3XP, a platform to elevate tenant experience. THM augurs well in our connected living segment of PropTech ecosystem by bringing on B2B real estate managers, asset owners and landlords onto a unified platform and aggregating supply of rental real estate. With this, I would now hand over the floor to operator for Q&A. Thank you very much, and I appreciate your continued interest in Aurum PropTech Limited.
Thank you very much, sir. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their 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, please wait a moment while the question queue assembles. To ask a question, please press star and one. The first question is from the line of Sanjay Awatramani from Envision Capital. Please go ahead.
Good afternoon, sir. Thank you for giving me this opportunity. I would like, just like to ask you, I mean, who are the competitors in this space? I mean, in domestic as well as international business.
Thank you, Mr. Awatramani. We are in a unique space of PropTech ecosystem where the competition is fragmented. We have a mix of various competitors operating in individual clusters of the four segments that we have identified. If I name a few, a few of them are approaching it from the discovery side. For example, NoBroker, which just became India's first unicorn. They're approaching it from a transaction model, where the focus is on discovery of real estate and facilitating transactions on real estate. The others are Stanza Living or Zolo, which fits in the shared spaces or co-living segment. Similarly, players like Awfis, Table Space fit in the shared spaces segment of co-working.
We also have SaaS platforms like ApnaComplex and MyGate, which are SaaS-based visitor management subscription-based models. We also have some competitors like HomeLane, Livspace, which are operating in the furniture rental and interior design segment. Loan aggregation and loan origination is also a huge space that that is a crucial part of the entire ecosystem, where we have players like BASIC Home Loan, Jana, Easy Loan, and so on. The VR, AR and metaverse area is also heating up quite a bit, where we have players like SmartVizX, Cubicle, Port operating with their individual products. On the enterprise side, we have supply chain platforms like BuildSupply, Infra.Market, which are facilitating demand aggregation and supply-side optimization.
In a nutshell, if you look at the competition, on an integrated platform level, we do not find a single player who is looking at it holistically and joining all the dots of the ecosystem. I hope I have answered your question. I also want to hand over to Ashish Deora for further.
Yes, sir.
We have this conversation all the time internally as well, Mr. Sanjay, on how to kind of approach the competition landscape. As Onkar said that there are lots of companies doing lots of things currently in PropTech. That is why we are trying to integrate various founders. We are evaluating acquisition opportunities as you see every few months while we are building some of these products internally. At the PropTech ecosystem level, we haven't seen much competition currently. Yes, at product level, we'll always have great companies and great competition and great opportunities.
Yes, sir. This answers my question. Thank you so much. If I may ask one more thing, when do you think that all these acquisitions which we are doing since last three to four quarters to move ahead with some revenues and profit levels, sir, on this?
We do track these companies so very closely, as and when we start right from the time we start into the due diligence and what is the behavior of these companies. How are they looking at revenue? How are they looking at growth? How are they looking at value? How are they looking at capital? How are they looking at teams? How are they looking at product? How are they looking at tech? Et cetera. There is a regular tracking mechanism. I would request Onkar to give you at least for K2V2, which is now six months old from our investment point of view, on how K2V2 has grown in last six months, despite being a 10-year-old company.
K2V2 was founded sometime 10 years ago. Excellent entrepreneurs and how we have been able to put growth capital with them to kind of let them grow, enable them to grow over last six months or so. On some numbers, Onkar will like to probably give those numbers to you.
Yes, sir.
Thank you so much. K2V2 has been an interesting play for us on two fronts. One is that we have been able to get access to immense talent. They were a 200 people team when we acquired them. We have grown to a 237 people team now, focused on developing tech, delivering tech, and also servicing tech to the B2B real estate player. After introduction of an additional product or a platform in addition to their CRM, Sell.do, we have been able to augment the revenue numbers. A few key metrics that I would like to tell you on K2V2 are as follows: The annual gross transaction value run rate for the quarter of 2021 is INR 185 crores.
We now have an annual revenue run rate of INR 27.29 crores as of Q3 2021. The developer relations and business accounts have grown to 473 units in Q3 2021. These key metrics are constantly being tracked with all investments, and we are always on the trajectory of growth where we intend to better these key metrics for every investment that we do.
Essentially the ARR, which was at INR 18 crores a quarter ago, is now at INR 28 crores in this quarter. That is how K2V2 has grown over one quarter. Look, these are very early days with these companies. We have just kind of started to work with them. We have only begun this journey, I would say.
Okay. Thank you so much for the answer on this, sir. And sir, if I may ask one more thing on talent management. I mean, I see that the IT industry is facing some challenges on the talent side. Are you even facing these challenges, or are you able to maintain some talent, I mean, in line with the real estate tech?
It's a challenge the entire industry is facing. There is no sort of secret sauce that we at PropTech or any of our companies have. I mean, we try to do more and more team engagement, et cetera. I have not really sort of found any secret sauce to this challenge that the entire industry is facing. Probably Onkar can speak about some of the initiatives that we do with some of the premier institutes because of which we get very good talent fairly quickly.
One benefit that we have had is the understanding of our industry companies in the IT sector and hiring in IT sector. In Pune and Mumbai, we run a unique model of internship and onboarding program wherein we tap into young talent, train them specifically on new tech relevant to our product development and onboard them onto our processes. It has been a successful model. We've been able to run this fairly well in COEP, Pune and IIT Bombay. With IIT Bombay, we have a very good pipeline now of interns working with us on various product development initiatives from data science to blockchain to AI, and then continue to work full-time as an engagement model.
That's been something that we've been able to do quite successfully.
Okay, sir. I think, this answer, answers my questions. Thank you so much for this, sir, and good luck.
Thank you, Sanjay.
Thank you very much. A reminder to our participants, to ask a question, please press star and one. Next question is from the line of Rohith Potti from Marshmallow Capital. Please go ahead.
Thank you for the opportunity and for the detailed commentary. I mean, I find the journey you've embarked on quite interesting. I have a few questions given that we are following an acquisitive growth. I mean, you might have answered this before, but this is my first call, so apologies if you're having to repeat. I was just curious, you know, quantitatively and qualitatively, what are the parameters that you look at before you zero in on a company which you think can be brought into the Aurum fold? Number one. Once a company is brought into the family, then how do you track its performance, let's say over five years?
How do you ensure that it is meeting the targets or the long-term strategic plan that you have for that particular business? Thirdly, on the acquisition itself, I was also curious, you know, once a company is brought into the fold, I mean, what do you do? Do you, I mean, replace the top management and bring your own operational and strategic expertise into the company? Or you let the existing founders and management run the business while providing support to them in areas where you think you can fill the gaps if there are any?
Okay. We are meeting at least 15-20 companies every month to identify out of a 50-60 companies to select one or two companies to take them to the strategic investment or partnership or the acquisition route, whatever, however we want to define that. This acceptance ratio is even lesser than a Harvard University. We have like to take it to like a less than a 2% of the companies that we are meeting. We spend a lot of time with the founders, with the entrepreneurs, with the team to say that, "Look, what is their philosophy? Why are they doing this? What is their background?
Are they in this for long term or not?" and things like that. That essentially is the first check. A lot of companies kind of make us uncomfortable because we believe that probably the entrepreneurs in our view are not keen to carry on for very long or are not committed to carry on for very long. Of course, is our own segments, our own four segments that we have, we are building products and services in. How well they fit into these segments, how well their products and how well their services fit into these segments. That is very important. Third very important thing is how big is that market, what they are doing globally and in India. Fourth is what are the global benchmarks of these companies?
Who are the global competitors? How well are the global competitors matured, even if it's not so much a mature product in India currently. Then of course, the business plan and what is the ambition that the company carries, right? This is, these are some of the things that I kind of look at. Everybody in this room currently, Sri and Kunal and Onkar have their own metrics to kind of look at various other things around that. I'll request Onkar and Sri to talk about that a little bit as well.
In terms of quantitative and qualitative evaluation, we have a four-stage process to evaluate every startup or every company that is into the PropTech space. First is the product understanding. We test the product on our own projects. We run the product ourselves, use it ourselves, and see the soundness of this product. There's a tech team that looks into it. The second thing that we check is the tech stack, the relevance and the freshness of the tech stack. It often happens that products are good, but the tech is a little obsolete. It is not as relevant or as new as the requirements of the industry today.
The third is the founder understanding of the business, the tech, and the sector is something that we give a lot of prominence qualitatively on. The fourth and a very crucial one is the business plan and the trajectory to growth. Does the team have an appetite to scale up the business? Do they also have the acumen to understand the scaling-up process? The fifth one essentially is alignment on vision, which Mr. Deora talked about, which is where we see if the product suits and fits in our segmentation of PropTech sector. We spend a lot of hours on these together as a team along with our tech teams.
After completion of our due diligence and a competitive analysis of peers in this industry, in India and globally, we come to a decision about whether it is an investment go on .
Yeah. Srirang here. Ashish and Onkar have covered most of the points, but we are also in a unique position because we have great experience in real estate for last 10 years. We are able to judge the usability and the relevance and the need for the new softwares which are being developed quite fast. Many times during our due diligence, we are able to use our live locations as a test bed to test whether the software is mature enough, whether it's able to withstand the scalability and the market demands as such. That gives us a unique ability to gauge these new startups in terms of their relevance and their sturdiness. That helps in selection. Initially, the question was asked, we definitely after acquiring the companies, let the promoters and founders run the companies and take them to the next heights.
We only monitor. We are aiding them to grow, and we are guiding them to grow, giving them enough ammunition in terms of financial strength. We relieve them of all the issues like day-to-day management, statutory compliances that our back team can take care of it, and the entrepreneurs are given full freedom and full time to achieve their dreams, to make their companies larger. I'll give it to Ashish now.
Rohith, I think that kind of answers a part of your question on how we acquire. Sri did clarify, we have not replaced the top management, and we never intend to replace the top management. In fact, we are looking to buy into companies where the top management is solid. Our idea is to put more tailwinds in these companies rather than trying to do something dramatic there. When it comes to post-acquisition on the tracking mechanism, we have operational controls and the financial controls and the statutory controls separately being tracked, some of them on a monthly basis and some of them on a quarterly basis.
That's something which we are keeping a very tight lid on, including how the money is being spent on almost a daily basis on all these companies. That is how we are building these companies. This is our acquisition tracking strategy. Absolutely, working with the top management, never with the intent of replacing the top management.
This is very interesting and useful. Thank you for being so forthright in your answers. So if you could elaborate a little further on the inputs or the support that Aurum provides, that would be great. Because earlier in the call you mentioned about I believe K2V2, which is a 10-year-old company and at an ARR of INR 18 crore. So how is it exactly that Aurum contributes to scaling up of the business is something which it will be helpful to get more details on. I'm also curious to know do you see the acquisitive approach to scaling Aurum itself and growing the company itself?
How long do you think this strategy will continue, or do you see yourself having a basket of companies you're comfortable with and letting them all grow organically down the line?
What do we bring to the company for them to grow exponentially? I think I'll ask Onkar to also address and add if there's something that's important. To your second question, we think that the companies are currently valued reasonably. We believe that there is a lot of upside potential to the companies that we are looking at, which we have already acquired or we are looking at acquiring. Having said that, at some point of time, if we see those inflection point and there is not a reasonable sense in terms of numbers, we are happy to step back. It's very difficult to give a timeframe or a number to how many companies.
In fact, we have stepped back on couple companies, where we thought that they're great people, great products, but we thought that their valuation was not conservative. It was on a bit aggressive side, and we were happy to let them go. As far as what we bring to the companies that we are working with, I will request Onkar to please talk to them.
It's a unique situation where the investee companies like K2V2 have a sound understanding of tech, great teams to build tech. First and foremost, we bring our understanding of real estate segment onto the table. We primarily, case in point, K2V2 have been able to change the business plan from a pure-play SaaS platform to a platform built on SaaS, effectively increasing its revenue potential from a SaaS to a transaction model. That has been one of the key drivers that we have brought on to in case of K2V2. Similarly, to look at all investee companies and understand their existing business plan and realign it to the requirements and our understanding of real estate.
The other thing that we bring onto the table is, we've built a huge fulfillment center, which effectively works together with these investee companies in delivering their products to the recipients. The fulfillment center is built to a capacity of 1,600 capacity. We have activated around 200 odd operational seats there, which are working day in, day out on ensuring that these products are delivered successfully to its right usage. The third and foremost important thing that is brought on to these companies is integration and synergies with other companies in the PropTech ecosystem. For example, K2V2 and Integrow Asset Management has an ideal synergy where K2V2 is able to do data-driven, sorry, demand-side, demand and supply-side data intelligence.
Whereas Integrow comes in as an asset management company and is able to back that mandate with the account and effectively help us build a larger asset under management portfolio, where the same asset is being dipped, double-dipped twice, once under the asset management portfolio and the second under the transaction model. Further on, when we add more products to the ecosystem, you'll have the triple and the fourth, quadruple dip also happening on the same real estate product that passes through the entire value chain. This is the value add that we've been able to bring on to all these businesses that we have invested into.
I'd just like to quickly add only one point to what already Onkar has elaborated. We are also bringing patient capital. We are bringing conservative capital behind them, and we are trying to bring hypergrowth mindset with them to say, "Look, the capital is around. Use it conservatively and try to grow in a hyperactive manner." That's something that we have a lot of conversation with our partners around these subjects.
This is fascinating as well. Can you please explain the K2V2 model a little more? I mean, when you talk about an ARR of INR 27 crore, what exactly is the composition of this ARR and how sticky is it and how recurring is it?
Sure. I'll give you a quick bifurcation of the ARR with K2V2. The ARR with K2V2 has now grown from pure SaaS to a SaaS plus agency plus a platform model. The SaaS revenue, which is a recurring form of revenue, stands at INR 13 crore ARR. The digital services revenue has been added to it, which gives us a foot in the door of an account relationship and helps us build that relationship effectively with the developer or the B2B player, is at INR 5 crore ARR. The third model, which is the broker aggregation platform, the Beyond Walls broker platform, wherein we go on to take up a transaction model business. We have the CRMs on which a platform is built, which helps developers launch their products.
In the back end, you have brokers signing up for the CRMs and getting marketing collateral, data intelligence, leads, real estate knowledge, and effectively helping them close these deals better further. We are paid for the outcome of this transaction closure. Effectively tech is enabler for a business where the developer is spending for digital marketing. The broker is getting the output of digital marketing and is able to be the sales force of the real estate developer, helping him close transactions. We are getting paid for the transaction, for the revenue coming in from transaction as a percentage fee. This is the mandate model that we've been able to introduce, which has added in the first quarter of introduction INR 9 crore to the revenue. INR 9 crore ARR to the revenue.
I hope I have been able to explain the K2V2 model.
Yes, this was helpful as well. One last question. The journey you're on is very unique, I believe as a company in India. I mean, for an investor, for a long-term patient investor like yourself, what are the metrics one would you think, long-term conservative patient investor should track to understand if you're on the right track, let's say three-year, five-year metric? That would be great as well. That's my last question. Thank you, sir.
It's gonna be very difficult to answer this question in a quantitative manner. As a philosophy, I can tell you because we can't talk about any three years or five-year numbers. As a philosophy, I can tell you that we are focused on revenue and we are focused on value. So you would see that we will try that more and more products go into the revenue pool over next multiple quarters. And while we do that, it's very important that the value of our products and the value of our investee companies are going up as well. These two are for us defined metrics internally.
However, we keep a very, very tight lid on ensuring that we are not losing money to chase this growth. It can be a slower journey, but it will be definitely a journey which is not led by capital, chasing, growth and capital chasing revenue.
Perfect. Thank you. This is very, very helpful.
Thank you very much. Next question is from the line of Sayyed, Individual Investor. Please go ahead.
Hi, thanks for the opportunity. I have one request first. I know you guys are actually, you know, building this ecosystem. If possible, if you guys come up with a investor presentation where we can actually show in a way where a layman can understand what are the building blocks that you have acquired so far and how you are going to build this ecosystem. That's my request. My question is on B2C side. You guys have solution for B2B, where a developer wants to sell their property, use your tools to sell it.
At the same time, like if you just look at the West, if anyone wants to sell a property, for example, in U.K., we have websites like Purplebricks, where a customer can just go and log in and give all the details, and then they will help the customer to send someone to home, where they come and take the pictures and create a design of the house, the layout of the house, and then show the proper three-dimensional video tour. And then, you know, helps the customer to post the ad. Once that ad is posted, the customer is given a choice to post this ad across all the channels. Like it could be Zoopla, it could be Rightmove, it could be PrimeLocation, it could be OnTheMarket.
It's just a single click. So once that ad is posted and then, you know, customer can actually, you know, allow the users to request for a viewing, and then customer can manage the viewings by themselves. You guys are working on any such solutions or you are acquiring or you already have? That is my first question. The second question is, I live in U.K. I think I did send a detailed email to someone, but they said, like, this is not the forum, something else. Recently I bought a property. This is one weird situation. Even though we live in a Western world, everything is manual. For example, if a customer wants to buy a property, they go to the website, they like it, then they call the estate agent, book the viewing.
Here there are many stakeholders. The customer who wants to buy a property and the agent who is actually helping the seller to sell the property. Once that is done, arranging the viewing and then placing the offer. Again, it's a one-on-one thing. Once the offer is accepted, buyer solicitor, seller solicitor, bank, and property search agencies where they go and you know, pull all the search data, all the information about the property. All these processes manually. There is no single platform where it grants the access to all the stakeholders where buyer, seller, agent, bank, all the property search companies and all, where everyone is actually on the same platform, the communication is very easy, everything is digital.
You don't have to rely on Excel sheets as a estate agent or as a buyer. You don't have to every time call the agent and the solicitors and all what happened, where are we, where are we with the mortgage and all. You guys have any such things in mind where you are building this kind of product? Thanks.
Mr. Sayyed, on your suggestion on the presentation, we take that suggestion, and we will come out with the investor presentation in due course. I think both your questions are extremely evolved in terms of the problem statement that you are addressing, and these are the things that are keeping us awake as well on how to kind of solve this problem. What is happening in India currently, as you rightly said, is clearly B2B2C. For example, if I'm a PropTech company, I'm going to a developer, and I'm kind of underwriting or mandating or broking that inventory, and then I'm bringing a consumer into it.
It's a B2B2C . Whereas the model globally has been or has moved to a C 2 C, right? Which is completely secondary. You, as a property owner, should be able to sell your property on a listing platform, and I as a property buyer should be able to buy it or vice versa. Right? I think that's where you are taking this to. Is that correct?
Yeah, that's right. Yeah.
In that case, what happens in India is that the title records are not yet fully digitized. Some states have already started doing that, and we really welcome that move. Once you have the titles sort of available online, then this process will become end-to-end digitally. We anticipate and we visualize that. However, a lot of other pieces within this, which is how a loan should be originated, how should a registration be done, all these are getting automated on a daily basis. I mean, that market share of automation is going up and up on a regular basis.
The entire ecosystem that we talk about is exactly this, where you are saying that, look, how can we bring a customer or bring a property seller who is an individual to a property buyer who is an individual, right? I mean, how do we kind of make that mix and match? There are some things that have been done on this already, which I assume Onkar would like to talk about.
Sure, effectively, what we've been able to do is, A, map all the key pieces on B2B and B2C side in terms of products and services. You rightly mentioned that it is a challenge to provide an end-to-end experience both for the developer or the property owner and also the consumer of real estate. There's a key piece that we have built in-house and which will act as a key cog across all the products that we are building in this ecosystem, right from a CRM to a transaction platform, to probably an escrow, to a furnished home furniture and rental platform.
The key cog in all these individual products and services is a centralized fulfillment center which will help conclude and connect these transactions across various personas of real estate and various products that are available in our ecosystem. For example, if we have a transaction happening on Beyond Walls platform when a purchaser has bought a real estate apartment through a broker, the next step in this would be a loan origination product, which is activated by the fulfillment center, wherein the financing requirement of the purchaser is satisfied.
Further on, you have furniture and interior design products that can be facilitated and triggered again with the fulfillment center that will go on to facilitate the furniture and interior design requirements of the purchaser. This is how we are tying up all the products and services and delivering an end-to-end experience for the consumer of real estate. B2C ultimately is the goal of the entire ecosystem, where the idea is that, how are we able to enhance a consumer's experience of purchasing and owning a real estate piece? I hope we've been able to answer your question.
Yeah, yeah. That's really helpful. Just one thing I wanted to add here. There is a huge gap in the market, especially in India, where if I want to sell a property, I just take my phone and take a few pictures and just go there and post an ad. This is my asking price. These are the pictures. But if I can present the same ad in a better way where I hire a professional, where they come and take, you know, pictures in a professional way, and then they just take all the measurements of all the rooms, everything, the layout and all, then they actually come up with a floor plan.
They can help me to have a 3D tour of my house and my society and my apartment block. All these things actually posted onto the website. It gives a very good experience for me as a seller and even for a buyer. He gets that initial impression without even visiting the property. He'll just decide to go and to view the property or not. I think this is something. I think there's a huge potential, I believe. Anyways, thanks. Thanks a lot.
Absolutely. We agree with you fully.
Thank you. Next question is from the line of Faisal Hawa from H.G. Hawa & Co. Please go ahead. Mr. Faisal Hawa, your line is unmuted. You may go ahead with your question.
Yeah. Sir, my question is that how many more companies will be acquired before, you know, our ecosystem is fully complete? What will be the, you know, utilization of the rights proceeds that will come in, say one and a half, two months from now? Are the promoters committed to, you know, subscribe to any unsubscribed portion of the rights also? Sir, a third question is, are we looking at, you know, developing any capabilities on our own also?
Faisal bhai, I think how many companies is your one question. The use of proceeds of rights is the second. I can answer the third one because we have already given an undertaking that, as promoters, Aurum will subscribe to all the unsubscribed portion. We are fully committed to that. That's something that I can confirm to you straightaway. The fourth question was on our in-house capability. Is that right, sir?
Yes, yes.
When you say how many companies, that's something that's difficult to put a number on currently. I can definitely tell you that within our four segments, four clusters that we are developing products and services, we are looking to develop anything between 22-23 products and services. Out of which I would say that we already have now six or seven, and there'll be another 15, 16 that is gonna be developed over next year or two. Some of these could be that we buy some of these companies because they have fabulous products. We partner with some of these companies because they have fabulous products or we build them in-house, right?
It could be a build versus buy versus partner strategy, and we are always continuously evaluating that. Putting a number to the companies is gonna be very difficult. Yeah, we definitely know what products we need to build. As far as the in-house capability is concerned, what is our team number currently? Already we are at 40 people in development from we would be probably 20 or 25 in the last quarter. There have been few products like a blockchain-based product that has been developed fully in-house, not even with some outsourced professionals.
We are looking at bringing the team in-house for the innovation products which are not being done usually by any companies. We think that some of the investing companies will not be spending on the innovation products and things like blockchain, things like AR and VR. Mr. Sayyed in a previous question talked about that. Some of these things we are trying to develop in-house. We are having our own capabilities currently to develop the products.
Since you are from, you know, you're an alumnus of Harvard and, you know, have you ever been approached or have you done a try to do the reverse method, you know, by, you know, having somebody come in like a Zillow or some, you know, who has like a big stake in the company, you know, and or has a, you know, 25%-26% stake and, you know, really, you know, that can jumpstart the entire process, you know? Because real estate as such there is no competitor or nobody's trying to crack the space, you know, 360 degrees, just like we are trying to do it.
Sorry. For some reason your line is not as clear as the other persons. If you could please,
I shall repeat my question. Since you're a Harvard alumni and, you know, with the good ecosystem in the U.S. also, have you ever considered or have you been ever approached by some, you know, company like Zillow who could take like, you know, 25%-26% stake at one go, but, you know, give you almost all the capabilities at one go and, you know, really jumpstart this entire process?
Look, we now definitely have put PropTech from India on a global map where most of the companies globally are in touch with us in some form or fashion. Some for development, some for partnering. We haven't really initiated any equity discussion with anybody currently, simply because we think that there is a long way to go for us to really build the right metrics internally before we discuss a 2025 or a 2026 or any strategic investment from anyone. As of now, I mean, we think that it's important that we stay focused in developing what we are developing and ensure that we keep our revenue targets and we keep our value targets on course.
Thanks so much for answering the question so well.
Thank you. Thanks, bye.
Thank you. Our next question is from the line of Kshitiz, an Independent Investor. Please go ahead.
Hi. Am I audible?
Yes, you are.
Please go ahead.
Hi. Thanks a lot for all the information that you have been provided us now. My only question is on the rights issue, like, do we have some sort of a timeline in place that we are looking for, given that it has already been approved by the shareholders and the board?
We have a timeline. I mean, get the rights issue done within next few weeks. I think definitely in this quarter we would have that process completed. I know that the processes, the merchant bankers are appointed, and if somebody from DAM is on the call probably can answer that better than we can. Yeah, the idea is to kind of be done with the rights issue permissions and process within this quarter.
Sure. That answers my query. Thanks a lot.
Thank you. Next question is a follow-up from the line of Sanjay Awatramani from Envision Capital. Please go ahead.
Yeah. Thank you again, sir, for taking my follow-up question. I just wanted to ask you, I mean, do we have some CapEx plans in future? I mean, what is the amount if you can share with us? And what is the timeline you are planning to spend this CapEx? And, once we are done with the CapEx in the companies, what is the payback period from these companies? If you can highlight, sir.
It'll be difficult to give you some sort of defined numbers at this stage. If you just see from a point of view of how we are approaching capital and how we are ensuring our behavior with capital, I think that's really important and critical. For example, investing very conservatively with the investee companies that you have seen currently, also kind of scaling up in a manner which is more organic in-house to build products and services.
We all know the talent market currently is very hot, so we don't want to be in some sort of real competition with the rest of the tech world to kind of say that, "Look why everybody should join us." We are in a conservative build-up phase hereon. We are sitting on reasonable amount of capital, right, committed and in presence, right? We could have actually over last six, seven, eight months taken more aggressive steps. I think we have taken bolder steps, but we have taken conservative ones, and I hope we'll continue to do the same.
Okay, sir. Thank you so much for this. Can you tell me something on this payback period? I mean, I think last time I asked you, but then so I would like to repeat you on the acquisition feedback and the payback period.
Payback period in acquisitions? These are really. I mean, I think they are value accretive from the very beginning. When you say payback period in terms of these companies will be profitable, that's what we are trying to push them to. Yeah, in terms of value, they are value accretive from the very beginning. That's what we believe.
Okay. Okay, sir. This answers my question. Thank you so much, sir.
Thank you very much. We have our next question from the line of Asha Gupta, our shareholder. Please go ahead.
Hello. Good afternoon. Hello.
Yes, Mr. Asha. We can hear you. Please go ahead with your question.
Yes. My question is for Mr. Ashish. What is the geography from which you are anticipating to generate the revenue, and what is the synergy of various companies you have acquired?
Yeah. Can you please repeat the question? What is the revenue? Is that the question?
What are the geographies you are anticipating to generate the revenue for the company? First question. Second question is, what are the synergies various companies you have acquired?
Okay. Cool.
Among the various companies you have acquired.
Look, we wanted to kind of address this. I'm glad you brought this up. We thought that it's still too early in the game. This is actually the first quarter under Aurum Management, where the company has gone into revenue. Both at the consolidated level and at standalone level we have revenue now, and I will request Kunal, our CFO, to talk about the revenue as well after this. As far as synergies are concerned, I think Onkar spelled out the synergies in the first half of the call. Essentially what we are doing really is that, the softwares and the service providers, we are trying to bring them together, right? That's where the PropTech ecosystem kind of comes together. For example, the...
For example, the HouseMonk is a SaaS product, rental management software. Now co-living company Grexter already uses that and will continue to scale up using the capabilities of the HouseMonk. Similarly between K2V2 and Integrow, there are tremendous synergies. We always now with every single company that we are looking at, we are seeing that how do we create a synergy with the existing companies or existing products or existing services that we have in-house. That's on the synergy. As far as the revenue is concerned, I think it's. For us, it's a very important quarter simply because it's the first quarter where we have revenue from business under Aurum Management. I'll request for Kunal to please talk about a little bit.
On a standalone basis, we have actually reported a revenue in this quarter that is revenue directly from our corporations of INR 66 lakhs. On a consolidated basis of INR 753 lakhs. Consolidated numbers are, as Onkar has already stated earlier. It is a standalone plus K2V2. Right now we have only two entities to consolidate. But the entire revenue is from IT and IT services as it has been disclosed in the segment reporting.
Okay. Thank you. Thank you.
Thanks.
Thank you very much. As there are no further questions, I now hand the conference over to management for closing comments. Over to you.
Thank you everybody very much for joining the call and giving your hour to us. We believe that what we are doing here is something very exciting and very very unique. We believe that when we speak to you next quarter, we will have something more concrete steps for fulfilling our integrated PropTech ecosystem. I thank you all once again.
Thank you very much, members of management. Ladies and gentlemen, on behalf of DAM Capital Advisors Limited, that concludes today's conference call. Thank you all for joining us, and you may now disconnect your lines.