Harsh Reality For Aurum Proptech After $10.3M Loss in Q3 Results

Aurum Proptech, the parent company of struggling Indian portal NestAway, posted YoY revenue growth of 50% in last week's Q3 financial results—but losses almost doubled in the same period, enough to warrant a statement about the future of the company in its report.

Highlights include:

• Consolidated Revenues of INR621 M ($7.4M)—a 51% increase year-on-year
• Losses of INR860M ($10.3M) in the three-month period to 31 December 2023, up from INR550M ($6.6M) in 2022
• NestAway lost INR213M ($2.5M) in the three-month period to 31 December 2023, up from INR110M ($1.3M) in 2022

Aurum PropTech is experiencing significant losses right now. Still, the small print in the company's financial results appears to shed light on an aggressive and longer-term strategy: the company embarked on two major acquisitions (including NestAway) and received approval to incorporate five subsidiary businesses in 2023.

NestAway was snapped up for circa $11M in June—a nominal fee given the portal's valuation of $220M in 2019—and also completed a 100% acquisition of YieldWiseX for a more palatable $15,000.

The firm also registered itself in Dubai in September 2023, so a UAE offering is imminent.

Nevertheless, Aurum's statement includes the following excerpt, highlighting the difficulties it faces to stay afloat:

The Group has incurred a loss before tax of INR 2,387 lakhs for the quarter ended December 31, 2023, and has accumulated loss of INR 6,581 lakhs as on December 31, 2023.

Further, the Group's Current Liabilities have exceeded the current assets by INR 10,822 lakhs ($13M) as on that date, mainly due to the acquisition of One subsidiary and its step down subsidiaries in the previous quarter.

Current liabilities mainly include Lease liabilities of INR 4,639 lakhs...These events or conditions indicate that a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern.

Yet the Group appears to remain optimistic about its future, going on to say:

The management of the Holding Company has reasonable expectations that the future Revenue projections will have a positive cash flow in future which will turn the Group profitable in the near future to enable the Group to cary on its business in the forseeable future and that is has the financial resources to aid the Group.

Aurum remains listed for now, but the company knows it faces an uphill struggle to get where it wants to be—the number one real estate data and analytics provider for real estate developers in the MENA region.