A second round of funding bringing in $10 million will see the expansion of Bangalore-based peer-to-peer property listings platform NoBroker.
Key investors included BEENEXT and Digital Garage, along with BEENOS, Qualgro and existing investor SAIF Partners.
In February last year, NoBroker raised $3 million from SAIF Partners and Fulcrum Ventures.
The company says it intends to put the funds towards hiring, product enhancement and the improvement of customer experience.
Launched in March 2014, NoBroker is aiming to expand beyond Bangalore and Mumbai.Founders Amit Kumar Agarwal and Akhil Gupta say the business is targeting 20 cities over the next two years.
Initially the business only listed properties in Mumbai but has since expanded to Bangalore, Pune and Chennai.
Indian digital media information website Medianama predicts NoBroker’s main competition will be from brokers rather than other online home rental platforms.
“There are a number of online home rental services in India, but the process of renting an apartment is still complicated and time consuming due to the involvement of brokers/agents,” writer Vivek Pai points out.
“The success of Facebook groups like Flats & Flatmates and Put Me In Touch indicate that there is a huge demand for peer-to-peer services, especially in searching and finding accommodation.
“For example, Housing.com introduced an online rental agreement service that allowed users to create a rental agreement online and get the physical copy delivered to their homes in 2014,” Pai reports.
“However, Housing.com currently mentions that its rental agreements service is closing by the end of this month."
NoBroker claims it verifies every listing to ensure that the posters are only actual owners and those searching for flatmates.
Users can also message the details on WhatsApp and the listing will be created by NoBroker. Customer service representatives get in touch in case any further details are required.
The company also offers paperwork and documentation services, including lease agreement registration, bank franking, police verification and society approvals among others.