Ladies and gentlemen, good day and welcome to the Q1 FY 2026 earnings conference call of Aurum PropTech Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. I now hand the conference over to Ms. Vanessa Fernandes. Thank you and over to you.
Thank you, Yashishti. Good evening, everyone, and thank you for taking the time to join us today. A warm welcome to the Quarter One, FY 2026 earnings call of Aurum PropTech Limited. We are joined today by Mr. Ashish Deora, Founder and CEO of Aurum Ventures, Mr. Onkar Shetye, Executive Director of Aurum PropTech, and Mr. Kunal Karan, CFO of Aurum PropTech. Quarter One has been a significant quarter for us in more ways than one. What you will see in our performance this quarter is not just financial progress, but signs of a maturing ecosystem where regulatory milestones, institutional partnerships, and strategic expansion are beginning to converge meaningfully. These developments are not just standalone events, they reflect the direction we are headed in as a company, focusing on long-term value creation and tech-led disruption in real estate.
Before we begin, I'd like to remind you that some of the statements made during this call may be forward-looking in nature. These are subject to risks and uncertainties, as detailed in our annual report and investor disclosures available on our website. With that, I'll now hand it over to Mr. Ashish Deora to begin.
Thank you, Vanessa, and good evening, everyone. It's a privilege to welcome you all to the 17th earnings call of Aurum PropTech Limited. I am deeply grateful to each of you for joining us. Your continued interest and belief in our journey fuels everything that we do. Today, I want to share five key developments, not just numbers, but the story of how we are scaling a purpose-led ecosystem, empowering our people, and staying relentlessly focused on building long-term value. Let's begin with our financials, our clearest signal of disciplined execution and operational excellence. Our total revenue grew by 39% on a year-by-year basis. Our profit margins improved by 852 basis points year-on-year. Our EBITDA margins grew by an impressive 826 basis points, and our adjusted EBITDA rose by 395 basis points. These results reflect more than just our commitment to revenue growth and cost control.
They reflect a culture where every team member operates with a founder's mindset. We do make every rupee work; every metric matters. With this momentum, we are on track to deliver positive adjusted EBITDA in the near future, confidently and sustainably. Moving on, the second milestone is the successful completion of our rights issue. This is more than capital, it's a commitment. It gives us the firepower to double our organic revenue in the next 27 - 30 months, while staying true to our principles of capital efficiency and focused deployment. It lays the financial foundation for everything that comes next. The third, and in many ways, most transformative development, we have officially received the SM REIT registration from Sweden. Backed by our real estate and tech expertise, we are now fully equipped to scale this offering with transparency, trust, and integrity.
We believe we will become India's largest SM REIT platform within three years. A heartfelt thank you to Sweden for enabling this revolutionary asset class. Through SM REIT, India will democratize real estate investing and open new doors for millions of investors. Our fourth milestone is the strategic integration of PropTiger into the Aurum family. We are thrilled to welcome 350+ team members with deep expertise in primary residential sales and unmatched access to 300+ developers across India's top eight cities. This acquisition not only accelerates our path to INR 1,000 crore revenue, it also meaningfully rebalances our ecosystem, strengthening the distribution segment along with our rental business. With synergies across Sell.Do, Aurum Analytica, Nestore, and Aurum WiseX, we are now better equipped to serve the 38,000-core addressable market in the residential distribution segment.
Finally, we are humbled to announce that REA Group, a global leader in PropTech, has become a strategic shareholder in Aurum PropTech, subject to the regulatory approvals. For context, REA Group is a $20 billion company, publicly listed in Australia and majority owned by News Corp. Their presence spans across Asia and North America. REA's conduct and rigorous due diligence before partnering with us have been inspiring and insightful. I would like to take this opportunity to thank the REA team, both in India and Australia. We have learned a lot from you. Additionally, I would also like to thank the advisors for the transaction. I believe that this is a profound vote of confidence in Aurum, in India's PropTech future, and in all of you who have been part of this journey. To conclude, investor calls are increasingly special for me.
Every investor call is a moment of reflection and reminder of a larger purpose. We are building trust. We are creating an ecosystem that empowers people, that empowers builders, that empowers families, and that empowers communities. We are shaping a future where Indian real estate is transparent, accessible, and intelligent, powered by data, AI, and your continued belief. It's a shared mission which now feels more possible than ever. Thank you for your trust. Thank you for your partnership. With deep gratitude, I now hand over the call to Onkar.
Thank you, Mr. Deora. The quarter yielded consistent year-on-year income growth. Rental businesses focused on tech adoption improved customer experience and unlocked more revenue streams. As a result, income from the rental segment between Hello World and Nestore grew 31% year-on-year, standing at INR 48 crore. At the co-living business Hello World, we stood at a blended occupancy of 77% across 230+ properties in 17,900 rental units under management. There was a 50% surge in short-stay revenue driven by rising demand for flexible living. Our customer service turnaround times significantly reduced from 8 days to 2.2 days. Nestore improved its operational efficiency and narrowed down losses. Nestore launched its digital resale platform to leverage its relationships with property owners to unlock an additional revenue stream. The distribution segment witnessed growth with multi-product adoption across key accounts and growth in new markets.
With additional offerings in transaction management capabilities, we are looking at the distribution segment growing multifold in coming years. Aurum Analytica continued its growth momentum with INR 13 crore in revenue, a 64% year-on-year uplift. We sold 75,000+ leads to 120+ active clients across 230+ projects. In the capital segment, Amza Investments, a subsidiary of Aurum PropTech Limited, has received approval from the Securities and Exchange Board of India to register its small and medium real estate investment trust under the name Amza SMREIT. Amza is evaluating a robust pipeline of Grade A income-generating commercial real estate properties strictly adhering to the SM REIT framework standards. We will take a prudent view before launching the first SM REIT scheme. I will now elaborate on the PropTiger transaction, its business and operations, REA Group, and our synergies with it.
PropTiger is a leading tech-enabled real estate sales and marketing firm with a pan-India presence. Through its full-stack online-to-offline services proposition, it specializes in new-build properties, serving as an institutional intermediary connecting consumers with properties and real estate developers. PropTiger has 300+ developer relationships across eight Tier 1 cities in the country, with a mandate partnership and a 350+ people team engaged in sales and mortgage advisory. It has enabled more than 50,000+ home sales since its inception and specifically 10,000 homes in the last three years. Home buyers put immense trust on the institutional brand that has 75+ industry-leading NPS. We acquired PropTiger from REA India PTE, a Singapore-based entity which owns PropTiger and Housing.com. In this strategic transaction, REA India PTE will get 5.5% ownership of Aurum PropTech Limited. REA India PTE is owned by Rupert Murdoch's News Corp and REA Group.
The REA Group is an ASX-listed multinational, a globally recognized digital advertising business specializing in the property market. It has investments across the globe, including Realtor, Realtor.com, PropTrack, RealEstate.com.au, FlatMatch.com.au, amongst many others. REA Group's revenue from FY 2024 stands at $1.1 billion, with EBITDA of $450 million and net profit of $370 million. This demonstrates the scale of the group and our conviction in engaging with them for this Grade A PropTech operation. The acquisition adds a key piece to scale up our distribution segment, which includes sales and marketing and transaction management business in primary residential sale. We will also be able to unlock synergies with the ecosystem, with rental businesses getting access to a large multi-city network to offer its real pre-sale services.
The distribution segment products can leverage PropTiger's relationship across 300+ developers, in addition to the transaction management, to offer more services to developers and increase its wallet share in the enterprise segment. The capital segment benefits from access to home buyers, fueling our loan recommendation engine Aurum CooperX. With these milestones: robust operational performance, strategic engagement with REA India PTE, and the approval of SM REIT, we have started Q1 FY 2026 with the right building blocks in place to scale up our PropTech ecosystem across all three segments. I will now hand over to Mr. Kunal Karan, CFO, to take us through the financial results.
Thank you, Onkar. I will quickly take you through the consolidated results for the quarter ending June 30, 2025. The revenue from operations, INR 68.40 crores as compared to INR 70.41 crores in the previous quarter, and INR 64.89 crores in the corresponding quarter previous year. Total income, INR 76.96 crores as compared to INR 78.04 crores in the previous quarter, and INR 69.10 crores in the corresponding quarter previous year. Loss before tax, INR 10.78 crores as compared to INR 9 crores in the previous quarter, and INR 13.74 crores in the corresponding quarter previous year. The EBITDA for the quarter, 28.4% as compared to 29.8% in the previous quarter, and 17.4% in the corresponding quarter previous year. Segment information. For the quarter, rental revenue contributed 70% of the total revenue from operations at INR 47.84 crores.
Revenue for distribution and the capital segments were INR 18.88 crores and INR 1.68 crores respectively. Rental and capital segment had a loss of INR 4.07 crores and INR 3.86 crores respectively, while the distribution segment made a profit of INR 1.79 crores. An update on the rights issue, we have received INR 131.15 crores from the second and final call of the rights issue, and further INR 3.05 crores on follow-up for the unpaid money. In totality, we have received INR 341.29 crores from the rights issue in three tranches on application, first call, and second call. I will now hand over the call to Ashish to take it forward. Thank you.
Thank you very much. We will now begin the question-and-answer session. To ask a question, please click on the raise hand icon tab available on the toolbar, or you may click on the Q&A icon to raise your hand. The operator will announce your name when it is your turn to ask a question. Please accept the prompt on your screen and unmute your microphone while proceeding with your question. You may post your text questions as well. We will wait for a moment while the question queue assembles. We will take our first question from the line of Param Vora from Trinetra Asset Managers. Please go ahead.
Hi. Thank you for taking my question. What I wanted to ask was that the company has demonstrated compounded sales growth of 156% over the last three years. Despite this strong top-line growth, the company continues to report negative profitability. Are there any industry-specific cost pressures that are contributing to this, and how does management plan to mitigate this to achieve sustainable profitability?
Thank you, Param, for your question. We are operating in two areas majorly. One is the rental business, which is the largest scale of our operation, which contributes to 60% of our income. By the nature, it is a consumer tech business. It's a marketplace platform which requires expenditure on marketing operations till the time it reaches a steady state in terms of the number of consumers on the platform seeking rental properties and the right supply on the platform that can service these consumers. We see a majority of expense going to boost this and support this. The distribution segment is profitable at an operational level, and we see this trajectory going ahead with an operational profitability at the distribution segment.
The capital segment, by nature, by the scale of its operation, is not as large and is to be scaled up once we have a decent control on the SM REIT license and the license.
Okay. Thank you. Can you give, you know, one or two-year forward projections regarding your financials?
While we are not allowed to make forward-looking statements, we will look forward to continuing this growth trajectory in terms of revenue. Just to call out the last three years, post we completed our previous acquisition at Nestore, we have demonstrated a robust growth. The CAGR for the last three years has been at 40%. In the coming years, since the PropTiger business, we are looking to grow at a 25% CAGR. With this trajectory, we are also looking to improve our operational efficiency and reach a break even by FY 2027 or 2028. Sorry, just to correct myself, we should be looking at growing at a 38% CAGR in the next three years.
Okay, thank you so much.
Thank you. Next question is from Shivang B. from MK. Please go ahead.
Yes. Thanks for taking my question. Congratulations on the number. I have a two-part question also regarding the capital segment in general and the rental license for PropTiger. Can you provide your timeline for the proposing scheme? How do you plan to launch various schemes? What are you targeting? What is the legal structure? I think you said that onsite listings in the subsequent launch all on PropTiger at the time. My second question is on the distribution segment. I can see a quarter-on-quarter depth in revenue and margins. Is there a seasonality to it? Also, just to add on, the PropTiger acquisition will start to sustain revenue from the next quarter.
Shivang, may I request you to mute your connection, please? There's a lot of background disturbance. Thank you.
Shivang, we were able to get your first two questions, and we are going to answer them, and we'll come to the third one later. With respect to the SM REIT, first of all, we've gone through a very rigorous and detailed process in consultation with the Securities and Exchange Board of India to receive the nod to conduct this regulatory business of SM REIT. The nature of the regulation is new. Here, we would like to take a prudent view post looking at the market, evaluating the SM REIT supply that is coming in for us to get evaluated, and then take a cognizant view on when to launch it. We would not want to be the market maker in this segment. We would rather want to wait out, see how the other SM REIT players are unfolding. This is a large TAM, and we don't need to rush into it.
This will be a wait and watch, and then gradually launch the first SM REIT once we have fully understood the scale of supply and demand on this. With respect to distribution, previous year, same quarter, we had an additional revenue coming in from two exited businesses, which we exited in H1-2025, namely Beyond Balls and Kailas, which is why you are seeing a difference in revenue. Like to like comparable, there has been, however, an income growth when you look at two continued businesses between Analytica and Sendu. As I mentioned in my transcript earlier, the Analytica business has grown. The distribution segment as such has grown 36% while when you look at both these operations, Analytica and Sendu. Shivang, we are not able to get your third question, if you can please repeat it.
Sure. For the regarding the PropTiger acquisition, will we start seeing the revenue from next quarter?
The PropTiger acquisition, by nature, is in form of a preferred allotment. This will take time till the end of August to get concluded. Post the conclusion of it, post the closing date, the revenues and the operations will be in our control and will be coming on to Aurum PropTech.
Thank you. We'll take our next question from Darshan Jhaveri from Crown Capital. Please go ahead.
Hello. Hello, hello.
Yes, we can hear you. Please go ahead.
Yeah. Hi, hi. Thank you so much for taking my question. Sir, I just wanted to ask, like I think we're planning to grow at 38% CAGR over the next three years, but in the last, if you could allow me, I think the last five quarters, our revenue has been in the range. What do we see in the current market status as, and how do we break out of this range? This seems like something the last five quarters we want to deliver on growth, but we are in a range, right? How do we look at it quarter on quarter, or should we just take an annual approach to it? A lot of businesses are starting right now for us. We are in four to five different active businesses, so a growth should kick in from somewhere. That's my first question.
Thanks for your question. Both the segments, rental and distribution, are seasonal and cyclical in nature. We should be seeing gradual upticks in Q3 and Q4 with respect to income in both the segments. You're right, we should be looking at the revenues and the income growth year-on-year rather than quarter on quarter.
Okay. Fair enough. I just wanted to know about our break-even plans. I think, sir, you mentioned around FY 2027-2028. By that calculation, I had around roughly INR 600 crore level is what we would consider ourselves break-even. Is that a fair assumption, sir?
That's correct. We are looking to reach INR 550 -INR 575 crore of revenue in FY 2027, which is where we are looking at.
Would that be a break-even on operations level or EBITDA?
At EBITDA level, sorry, at operational level.
At operational level, not at patch level, right? Patch level would be even further away, right?
That's correct.
Okay. Fair enough. Just with regards to the acquisition of PropTiger, I think in the presentation we mentioned FY 2024 figures. Is there anything that we could get about FY 2025, how has that been? Is it a profitable business, or what's the revenue scale for it, sir?
While we would have to give you the FY 2025 numbers, these are provisional in nature, and we are waiting for the complete audit to be completed by REA India PTE. After that, the FY 2024 numbers are available publicly. They have done INR 95 crore revenue. I would look at the business from a three-year perspective. Last three years, PropTiger has done INR 245+ crore revenue in the transaction management business. While it has come at losses, we see areas of optimization across three areas. One is the business support services, which PropTiger ends up paying to their parent entity for its functional support and management support coming in from the group entity. The second is the royalties that go in that are queued from PropTiger to the group entity for IP. The third is the marketing fee that also comes in as support from the group entity to PropTiger.
With these three and certain operational efficiency, we are looking at the next 12 - 18 months to turn around the business and make it profitable while maintaining the revenue growth and also increasing it in the next 12 - 18 months.
Okay. Fair. Just one side, sir, clarification. I think we are seeing INR 550 -INR 575 crores for FY 2027. That doesn't include any PropTiger's equity, right? That's the additional key fund that we have. Hello?
That's correct. It does not include PropTiger.
Oh, okay. Okay. Okay. Fair enough. Is this like a broad range, sir? I just wanted to ask, like now from maybe a four to five-year perspective, we are, you know, having, you know, rental, distribution, capital, and even PropTiger now coming in. In our journey, how would it be? Will one business just scale up to another level, or will all be growing simultaneously? How do we see, like, just what is your vision for how do we see ourselves five years down the line? I know it's a very bigger view, but I just want to understand our thinking and, you know, like how do we see the Indian market and how do we see our role in, you know, serving the needs of Indian customers?
Sure. That's a very crucial question. We have also taken this view while going into the PropTiger acquisition. As of this quarter, 60% of the revenue contribution at Aurum PropTech comes from the rental business, primarily Nestore and Hello World, which are the most mature and scaled-up businesses from an operational standpoint. With the transaction management business of PropTiger, the revenue contribution in the coming years will be a balance between rental and distribution, with both contributing 45% each, and the rest of it getting contribution from the capital business. We see scale in the PropTiger business by the nature of its operation, the network presence, and also the brand it has established itself for in the last few years.
Okay. Fair enough. Sir, I just want to know in terms of our capital business, like SM REIT, we've got the license, but we are waiting for other players to come in. What do you feel like is when could we be able to launch? What is your internal timeline for that, sir?
One entity has already launched their SM REIT. They are in the process of already launching the second SM REIT. We are closely looking at how the regulation is playing out, how investors of SM REIT are looking at it, how the supply for the SM REIT is being looked at. We will take another two quarters to look at this market very closely. In the subsequent quarter, which is either Q4 or Q1 FY 2027, we will look at entering into the SM REIT business or launching the first SM REIT as well.
Okay. Okay. Fair enough. That's it from my side, sir. All the best. Thank you so much.
Thank you. We'll take our next question from Govind Salian from Artek Shorefin Chemicals Limited. Please go ahead. Govind, please check if your connection is on mute mode. Govind Salian. I repeat, Govind Salian from Artek Shorefin Chemicals Limited. Since there is no response, we'll move on to the next question from Faisal Hawa from EDGI Hawa & Company. Please go ahead.
Sir, we had said that as your target of reaching INR 400 crore revenue by 2026, sorry, 2027. Will that target now be just pulled ahead? Because now with INR 70 crore rendered in this quarter itself, and say if we are headed for INR 280 crore and another INR 100 crore come from PropTiger, this may come through in 2026 itself. Can you also throw some light as to how our competition is now doing, like Nobroker.com, etc.? Are they still bleeding and throwing money to expand, or has some kind of change of mind taken place?
First of all, I'd like to share with you that we have got the SM REIT registration. It has been weighing on our minds for the last two or three investor calls when you asked this question about the SM REIT registration. We finally got it, and I was delighted to share with you on this particular call. That's one great news. As far as numbers are concerned, Onkar has given some sort of already some sort of forward-looking numbers without kind of talking about it. You have to look at the last three or four years of improvement of metrics, improvement of profitability across our businesses. You can look at it on a consolidated basis, and you can look at it on each and every business. While we are continuing to grow in revenue, we are improving our profitability metrics each and every quarter.
I think we just have to continue with that discipline. We just have to continue with those same numbers for the next two or three years. PropTiger integration is something that we are looking forward to because there are some great synergies with the existing business. Of course, PropTiger has its own revenues, own profitability that we will achieve, but it has great synergies with our businesses that are already in place. What we have done in the last four years in terms of revenue growth and a keen eye on profitability, we just have to probably continue that for the next two or three years. The numbers that you're talking about, I think can be done faster than projected.
Would you be able to throw some light on the parents' involvement in PropTiger? If they're a Singapore-based entity, then what kind of benefits they could give us? Now the royalty payment will cease to them. Will they still help us out? Can you also throw some light on what the present management, the CEO who has been retained, brings to the table for us and how you feel he could be of much value to us? We saw in the case of Nestore that the previous management really helped us a lot in turning around and scaling up the business.
Thank you, Faisal G. I'll answer the second part first. PropTiger was founded in 2011 by Mr. Dhruv Agarwala. With REA India PTE and the REA Group coming in, the way the PropTiger business has evolved over the past three to five years is that they have institutionalized it and made it not individual dependent. The present management team that has continued to be with PropTiger and is transitioning to Aurum, with, of course, the PropTiger business being at the helm of driving operations and this 24% CAGR that PropTiger has achieved in the last three years in terms of income growth. REA definitely helped them institutionalize this business with respect to management support, with respect to functional support, with respect to processes, with respect to tech and IP, owing to their global understanding of PropTiger, of the PropTech business in general.
REA Group not only owns these India investments between Housing.com and PropTiger, but it also owns PropTech businesses across Australia and the U.S. What we will continue to get from the group is two things. One is, of course, the processes set by them, which continue to be a part of the existing management team and the processes done by them. As a part of transition support, we will have transitional support from the REA team over the next few quarters so that we're able to absorb, integrate, and stabilize the business under Aurum PropTech's fold. I hope I've been able to answer your second question.
Sir, have they lost enough, also, any cash on books in this company? Is there any particular reason that they decided to sell off this business? We have almost got this business at one-time sales value, sir.
This is Ashish Deora. I think now the PropTech industry as a whole and the investors do look at Aurum to kind of integrate together. They look at working together. We believe that PropTiger was one of that initiative. Sellers sell for a certain reason, buyers buy for a certain reason. I'm unable to answer why we're just selling. Yes, I think it's a great synergy for the products and offerings of existing offerings of Aurum, which made great sense for us. As far as 1X that we are talking about, as you know, we are very conservative, very conservative acquirers. We value companies very conservatively. By now, since this is our eighth acquisition, by now, I think when someone reaches out to us, they already know that we will buy very conservatively. What we bring to the transaction is certainty. What we bring to the transaction is transparency.
Probably that is why global capital allocators, global investors like REA Group or Tiger or Capitaland, they are generally comfortable working with us in the industry. Probably that could be the reason if that answers your question.
Sir, are you open to taking someone on board for the SM REIT, something like a Brookfield or a very large institute with extremely deep pockets? Because you have been known in your previous avatar to always be collaborating with very big names.
Thank you. I think we would like to build a little bit, right? It's too early in the game now. We believe it's a nascent sector. It's a business that is going to become very large. It is just starting. We have some players who have got this registration before us. As Onkar said, we are keeping a keen eye on what's happening in the industry. I think next year or so is about keeping that keen eye and kind of getting the first SM REIT out. A couple of years after that, maybe to really scale up. It's the time to really talk to some domain experts or domain specialists, if any. We have our own real estate experience at the group level. We have our own tech experience at the Aurum PropTech level.
We believe that we have all the right ingredients to build out this business in the near future. Any collaboration on this, if any, would happen in the future.
I'll come back into the queue for one more question.
Thank you. Next question is from Pranav Mashruwala from Dalit Capital. Please go ahead.
Hello.
Yes, Pranav. Please go ahead.
Hi. Thanks for the opportunity. One of my questions was on the distribution and capital segments. Distribution segment profitability, as well as revenue, have declined quarter on quarter. In the capital segment, even though the revenue has declined by about 60%, the losses have gone up by 2X. Was there some divestment over here or, you know, property or some business that we exited? On the distribution segment, have we made any restructuring efforts that led to this?
For the distribution segment, if you are comparing the numbers from the March quarter, March actually, because it is the last quarter of the financial year and we are really conservative in booking the revenues and other things, we know exactly the receipt and other things. That is why March definitely has some additional revenue in that front. There is no change in the structure and other things that have happened for distribution. In the March quarter plan, we got one-time revenue for our efforts over the last, I will say, around 15 months. That is why the March revenue was definitely March revenue, and the result was definitely higher. That is why the dip is now seen in this quarter. As such, from an operational side, there is no change as compared to March. For the capital segment, more or less the same thing.
Maybe what we see in this current quarter will continue for the rest of the three quarters in the current financial year if we are not doing something in the SM REIT part in the current year.
Okay. On the rental side, as Hello World, I think one of the things that we've highlighted is we've offboarded some of the underperforming properties. Has there been something similar in Nestore as well?
Pranav, may I request you to mute your connection, please? Thank you. Sir, please go ahead.
In Nestore, I don't think we can have a same apple-to-apple comparison in terms of supply with Hello World because Nestore is a completely asset-light, no lease, no occupancy risk model. We have definitely activated more micromarkets that are generating demand hotspots for us. That is where our focus on getting more signups and more properties at Nestore will also be at.
Okay, thank you.
Thank you. Next question is from Rahul Jain from Dolat Capital. Please go ahead.
Hello. Hope my line is audible.
Yes, please go ahead.
Yeah. Hi. First of all, congrats on two developments. I understand the SM REIT part of the thought process that it will take some time for us to scale up on that opportunity. Meanwhile, on the distribution side, how are we going to leverage some of this opportunity into a much larger scale-up that we intend to do? Can you elaborate on that a bit? You also shared that some of the synergy of this capability could be leveraged across business. What are the plans for us in terms of scaling this business and also synergy of this asset into different segments for us?
We see PropTiger as a great fit for all three segments in terms of the network it brings on and the enterprise relationships it also brings on to. For the rental segment, we are able to get intelligence on apartments that were sold in the last five to seven years from a primary residential sales point of view that can be offered for rentals or prompt for rentals or also resale. Likewise, Nestore and Hello World, Nestore, rather, gets access to the 350+ people team that is engaged in sales advisory for consumers who are looking to purchase apartments. On the other side, PropTiger also gets an additional resale inventory, or the PropTiger team also gets a resale inventory to be looked at from a sales point of view, thus bettering their offerings in a market from a portfolio point of view.
On the distribution side, the developer is a clear winner here where he gets one point of access and an institutional listed entity providing all three, I would say, tech-enabled solutions for him to generate leads with data analytics, to manage its consumer communication through sales automation, and now also add on to the transaction management that PropTiger brings on. At the other side, we also get to increase our wallet share across the 700 developer relationships that we have at Sendu, around 150 developer relationships that we have at Aurum Analytica, and likewise the 300 developer relationships that we have at PropTiger. It is going to be a great cross-sell opportunity for all three businesses.
For the capital segment, CooperX, our homegrown or our proprietary loan origination software, gets a shot in the arm, which is now having access to this 350 people team network across eight cities where we are not only getting home loan seekers or prospects, but we are also getting a fulfillment arm that can go on to transact home loans for them and at the end of it, service it to the right bank. All these segments benefit, and that's why we felt this is a great strategic fit for our business at the scale it is at.
Just to add, this is Ashish Deora, just to add to what Onkar just said. Post our Nestore acquisition, we had decided that we are going to look into businesses which are extremely synergic for our ecosystem. For example, it could be a very compelling business in PropTech, but if it doesn't have a synergy with our other products or other segments, then we are not going to look at them. We had kind of made this internal sort of strategy two years ago. When we started looking at PropTiger, we thought that, one, the business itself is very solid, of course. Secondly, it was bringing synergies to three or four of our offerings. It was just sitting either in the forward integration or backward integration of these businesses. We thought that is why it was a great strategic fit.
Of course, the way REA Group, both in India and Australia, the way they kind of handheld the discussion and the comfort that they brought on the table, that really kind of helped us to make this.
That's an interesting suggestion. More extension on that, if you could share, Ashish G, in terms of how we are going to leverage the tech part of it because all of these businesses are somewhere interlinked. Secondly, from the people side of it, what was the plan to do collaboration from a people's point of view? Is it like a center of excellence kind of a model, or would they be more getting onto a common call or something? Both on the tech and people side, if you could see how you plan to leverage that.
You're right. The assets or the strengths that PropTiger has, it's its team, its tech, its relationships. We have a roadmap in how Nestore and Sell.Do and Aurum Analytica and CooperX, how should they be able to, over the next few quarters, utilize this strength and at the same point of time also strengthen PropTiger with our ecosystem. It's not only a one-way traffic. It's to both, right? That is how the network effects of ecosystems should work. What we have also done for that same reason, so that the integration is smooth, we have requested one of the founders of Aurum Analytica to get feedback from Aurum Analytica as a CEO position from there and take over as CEO of PropTiger as and when the acquisition is completed. That also helps us do the integration with the ecosystem.
Rakesh is somebody who understands the company, who understands Aurum for the last three years. People like G2, they understand the system. We kind of try to integrate this right at the management level from day one here rather than first acquiring and then trying to bring our management.
There is only an existing center of excellence practice that PropTiger has, which we intend to extend as a practice to the entire ecosystem. A very robust practice set by REA Group India PTE, and that will definitely benefit the ecosystem overall. There's one more added benefit of this business from an integration standpoint: we get access to those 50,000 units that were sold by PropTiger historically, which can now be threaded across multiple PropTech revenue opportunities. Likewise, the average revenue per employee also gains to increase across all the three segments. That's a dual benefit that we see coming in from the PropTiger approach.
Yeah. Just the last one from my side, with REA Group coming into our cap table and they being a big investor in a similar PropTech ecosystem, do we see more opportunities to work along a different form of business within India or any other market? Do you think there's not much future opportunity out there within?
We see that these are very early days. We have always regarded REA Group from the very beginning, since the time we started PropTech back in 2020, 2021. We have very high regards for the group. They have demonstrated fantastic business in India already with Housing.com and PropTiger. Now we have this opportunity to also have them on our cap table. To answer your question, it's early days that what can be worked out in the future. I guess that is how our journey with most of the other global players has started. It starts small, and then it gets built into a big opportunity. Having said that, as of now, we are welcoming them, and we are hoping that there is great synergy in the future.
Sure. Thank you, and best of luck for the time ahead.
Thank you. Next question is from Namanjan, an individual investor. Please go ahead. Naman, your line is unmuted. Please go ahead with your question. Naman, please check if you have muted your connection. Since there is no response, we'll move on to the next question from S.P. Malikarjun Achar, an individual investor. Please go ahead. Mr. Malikarjun, your line is unmuted. Please go ahead with your question. Please check if you have muted your line. Mr. Malikarjun, since there is no response, we'll take a text question from Ashish Kumar, an individual investor. The question is, congrats on the recent development. Earlier, it was mentioned INR 2,000 crore AUM in SM REIT. Can we assume one-person management fee? What's the EBITDA margin for PropTiger? How much savings expected from ending marketing royalty payments to REA?
I think we'll elaborate on both the questions. The INR 2,000 crores AUM was required to be built over the next three to five years in a manner where we start looking at how the space was evolving first and then start on the building. Like we called out on the call, we will look at the next two quarters, observe the markets very closely, and then go on to build this INR 2,000 crores AUM journey in the SM REIT structure. Yes, you're right. The management fee can be it varies from asset to asset, but we can look at a management fee in the range of 0.5% upwards. In addition to it, there's also an acquisition fee that comes at 1.5% for every asset. Of course, if you exit the fee with a good performance, there's an exit fee also that is built into this model.
With these three revenue streams on each asset, we are looking at a decent spread to be made forward over the assets. With respect to the second question, this is a little preview to the transaction. We will definitely elaborate this over the next call. We are aware about the numbers. All the nature of payments that are going back to the group are substantial in nature, and that will definitely go in to reduce the losses that we are presently seeing in the FY2024 numbers that are available publicly. We don't see a challenge in running this operation profitably, and we expect that within the next 12 to 18 months, we should be able to achieve profitability and the same scale of revenue in the PropTiger business.
Thank you. We'll take our next question from Namanjan, an individual investor. Mr. Jain, your line is unmuted. Please go ahead with your question. Mr. Jain, we do not have a, you know, you're not audible. Can you post your text question, please? Thank you. We have a follow-up question from Faisal Hawa from EDGI Hawa & Company. Please go ahead. Mr. Faisal Hawa, your line is unmuted. Please go ahead with your question.
Is it the right comparison to make that this REA business, we could be the AMC of choice for years together, and this business could be almost like, say, half of what the mutual fund business is today, say 10 - 15 years ahead, or am I just hallucinating?
That is right in terms of the way this business is structured in the SM REIT regulation that's being made. It is similar to a mutual fund where you have multiple schemes under one trust. The way we foresee is like that. This business of an investment manager in SM REIT will be able to grow to that scale. However, as we called out, we'll be looking over the tenure for the next three quarters on how it's very nascent in itself, and the product is very new. Over the tenure, we'll just look how the market is going, and then we'll enter the space.
It doesn't look like it's going to be looked at as a mutual fund business from a gentry of investors that should be looking at this grade of asset and this quantum of asset. That is one key difference between a REIT and an SM REIT, where an INR 50 crore asset size, upwards of INR 50 crore asset size, is being looked at by non-institutional investors, hence making it very, I would say, a potential path to a product akin to mutual funds.
Just like HDFC in the AMC business for a mutual fund has its brand name as a very big differentiating factor, Quant mutual fund is having its mathematics-based investment as a differentiating factor. Can you name me two to three differentiating factors that we have that help us succeed in this SM REIT business and where we could actually potentially get the investor at least 1.5% - 2% higher returns just because of our these two or three USPs?
There are three parts to it. One is, of course, the profiling of supply that is very crucial for onboarding the right supply, which comes in with our group company's real estate expertise and sits on the SM REIT and the business unit.
The second is the property management and the churn of leasing and churn of tenants that also comes in and is very crucial for maintaining a certain rental yield for that asset. The third is integration of tech platforms that will help investors in the form of portfolio management and ensuring easy entries and exits into the SM REIT market. These three are going to be differentiating us and are going to put us in, like you rightly said, compared to the graded or the branded mutual funds category. We should be looking at, as you rightly said, the go-to or the port to call for SM REIT units. SM REIT units should be looked at by investors.
Within management, is there any thought that at some time between these four or five optionalities that we have at the business, which is one at the distribution side, one at the analytics side, then the SM REIT filters, at some time is the management cognizant of the fact that one or two of these horses will really bolt ahead? At that time, these businesses will either have to be demerged or some special attention will have to be placed on them so that they really become the crowning diamonds of our crown.
We in a way concluded our last transaction in 2023 and the recent one now this quarter. There are three businesses that we will definitely call out which have grown multifold post-acquisition.
One is, of course, Hello World, which has grown more than 3X from the date of acquisition, which we feel will continue to scale up in the same trajectory. The second is Aurum Analytica, which has grown 6X from the date of acquisition in 2022. We also feel that this is a business that will scale further. Nestore, by the whole nature and model of its marketplace model and a very scalable model in terms of its revenue, is also one business that we are looking to scale. Now with PropTiger, the majority of the business, the network business it has, we see this business is also growing multifold. This, by the way, is a INR 38,000 crore TAM that we are looking at, which is between transaction management expenditure, sales and marketing expenditure that is done annually by real estate developers across these top eight cities in the country.
We have not even scratched the surface in this business as of now. All three businesses not just have the headroom for expansion, but also inherent potential in terms of its maturity and network scale at present.
Is there some ambition to make a nightstand kind of a structure within us or which actually becomes like a go-to kind of a place for anything related to real estate?
Sir, you're right, we would like to be larger than NestAway Lite in terms of the brand presence, in terms of the network presence, and also in terms of operations. The aspiration is in the right direction.
I really appreciate your answering my question so in-depth, sir. Thank you.
Thank you, sir.
Thank you. We do have questions in queue, but due to the paucity of time, we'll have to end the session here. I would now like to hand the conference over to Ms. Vanessa Fernandes for closing comments. Thank you, and over to you.
Thank you, Ashish. Thank you, everyone, for making this session engaging. Quarter one just set the tone for an exciting year ahead. As we move forward, we do so with the quiet confidence that comes from building patiently, purposefully, and with conviction. We will. Forward.
to staying connected with all of you and sharing more updates in the quarters to come. Until then, stay well and have a pleasant evening ahead. Thank you.
Thank you, members of the management team. On behalf of Aurum PropTech Limited, that concludes this conference. We thank you for joining us, and you may now exit the meeting.