Indian Real Estate Website Looking for Equity Investment

Opportunity Snapshot

  • Country: India India
  • Industry: Real Estate
  • Stage: Start-up
  • Investment size: $30,000 / min. $30,000
  • Type of investment: Debt, Equity

Investment Opportunity

The first product of our company is a fully functional real estate portal. This website is all in one facility for real estate related needs

Products:
The first product of our company is a fully functional real estate portal. This website is all in one facility for real estate related needs. Today users are opting for maximum options before buying or transacting in real estate field, so keeping this point in mind we have facilitated our user to choose from a maximum variety of options. The user can search for properties in the city offered for rent or sale or list their own property. We do not act as an intermediary between the two parties involved in the transactions; we just facilitate users to get the best match to their needs.

Apart from the real estate portal we have many other portal ideas under design which will be fulfilled in parallel with this one. We have registered our company as services company and we have the mid to long term goal to become a trusted services provider in the Information Technology field.

Target Market:
Online users are the main target of our business. Today the paradigm of business is shifting from offline shopping to online shopping, and we have structured our business while keeping this in mind. The development of a Real Estate portal which will allow users to meet all their real estate related needs is requirement of Indian property seekers. So we will definitely come true to the expectations of the customers giving best out of box facilities to them.

Project justification:
This is an online business model which is very different from the traditional one. Firstly, online business models do not need much physical existence because most of the activities are automated. Hence, we have to spend most of our money only to promote the business and provide salaries to the employees. We do not need office expenditures. In addition, returns of this business are very high because the business is not limited to any geography. Through internet it we will reach to the whole geographical area of the country. Like other Indian IT companies evolved within a quite short period of time, we also have 100% faith in our success.

Progress on the project:
The company board of directors is headed by me and my brother holding respectively 60% and 40% shares. Apart from top management we have a fully engaged marketing team of total 12 MBA graduates with more than 3 years marketing experience in major metro cities of India who daily visit builders and agents to promote the site. The site is completely managed by an information technology expert firm based in Pune. The portal is full equipped with features and has already been launched in Sept. 2013.

Project Timeline:
The portal has been completely developed and launched. Once we are assisted with finance we can cultivate our business within a period of maximum 6 months.

Offering to the investor:
We are looking for an investor cum business leader who will assist us not only with finance but will also lead the business along with existing management. We will involve our investor in our top management by offering him/her 40% partnership in the company. After owning 40% partnership the investor will lead the company as a vice president and member of the board of directors.

Competitive Advantage

We have direct competitors like:
1) magicbricks.com
2) 99acres.com
3) makaan.com
4) indiaproperty.com

As per our market research we have the following advantages over these competitors:
1) None of them allow free property listings, while we will.
2) These sites are loaded with 1000 of projects which give them a bulky look and feel.
3) Not all builders get a chance to promote their business at premium slots of these sites as those are already occupied slots.
4) These sites act as intermediary between buyer and seller, while we won’t intervene.
5) Price difference of the products is very big.
6) Indian online users are more than the total population of America, hence we have very large market.
7) The Indian online market has grown only up to 2% to its capacity hence no need to worry we have a huge scope for growth.

Rationale for the deal

There are investors who have money to invest and are familiar with traditional business models but very few of them have knowledge about the Information Technology business model which is a young and dynamic one. With us the investor will get chance to put their money in the IT market which is a leading sector worldwide. As proven by numerous IT companies in India the IT business is a dynamic sort of business which can give manifold of returns on your investments. Therefore, this is very crucial opportunity for our investor and us as well. All the deals with investors will be done as per the Companies Law of India and under the inspection of qualified chartered accountants.

Use of financing

Funding is needed for the below things:

1) Online promotion of the portal & our company
2) Employees’ salary
3) Expansion in other cities
4) Backend management of the site
5) Server charges
6) Setting up central head office at Mumbai for controlling whole business

All the financial activities will be monitored by qualified chartered accountants.

Opportunity for the investor

We are a private limited online services Indian company and we are looking for equity investment for expansion of our online business. In return we are offering 40% shares of our business to the investor. This is a unique opportunity for the investor to get directly involved with a company which will take its business all over India with a very small investment amount.

This is a very good opportunity for US or UK investors to start a new venture in India in small investment amount as currency valuation of dollar or pound is quite big in India. We would like to prefer US or UK investors as we are having mid-term goal of setting up and launching similar online business in US and UK which will be technically outsourced to India.

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