NoBroker, the real estate platform connecting property owners directly with tenants, has released its financial report for FY23, nine months past the due date. -backed startup, founded by Sourabh Garg, Akhil Gupta, and Amit Agarwal, reported significant growth but also increased losses.
Financial Highlights:
- Revenue Surge: NoBroker’s revenue grew by 86.8%, rising from Rs. 326 crore in FY22 to Rs. 609 crore in FY23. The overall income, including a non-operating income of Rs. 74 crore from fixed deposit interest and mutual fund profits, totaled Rs. 683 crore.
- Increased Losses: Losses expanded by 63.8%, from Rs. 309 crore in FY22 to Rs. 506 crore in FY23. Total expenses rose by 75%, from Rs. 679 crore to Rs. 1190 crore.
- Employee Costs: Employee benefits costs surged by 66% to Rs. 435 crore, accounting for 36.55% of total expenses.
- Advertising and Overheads: Advertising, payment gateways, and other overheads contributed Rs. 724 crore to the total costs.
- Efficiency Metrics: ROCE and EBITDA margins were recorded at -34% and -69.5%, respectively. The company spent Rs. 1.95 to earn a unit of operating revenue.
NoBroker competes with platforms like Magic Bricks and 99Acres in home listings, MyGate in gated community services, and LivSpace, Bonito, and Homelane in home interiors. To date, NoBroker has raised over $400 million, including a $210 million unicorn round in November 2021 and an additional $5 million from Google for its NoBrokerHood vertical.
Despite its diversified services, NoBroker’s profitability remains constrained. The introduction of post-paid plans in Bengaluru and Chennai, where landlords pay fees only upon deal closure, could challenge its zero-brokerage model. Traditional real estate brokers maintain a strong presence due to their local market expertise, despite the rise of funded startups.
NoBroker’s major shareholders include General Atlantic (30%), Elevation Capital (15%), and Tiger Global (15%). The company aims to reach a revenue milestone of Rs. 1000 crore in FY24, although it has yet to file its audited financial statement for the year.
NoBroker’s FY23 report underscores its substantial growth in revenue, juxtaposed with rising losses and expenses. The company’s efforts to innovate and expand services highlight its commitment to leading the real estate market, though it faces ongoing challenges in achieving profitability.
