With the booming Indian real estate market and increasing purchase power of the common man, buyers have little information to help them judge and choose their dream home and builders have bigger worries on how to manage the inventory effectively. Bangalore based startup Sadanika Solutions is trying to address this problem. Imagine buying an apartment or house, with not only a click of a button, but also then getting updates at every stage of the buying and construction process.YourStory.in caught up with Kshitij Minglani and Rajat Kothari from Sadanika Solutions (TECH30 Company) to know more about their venture.Briefly tell us about Sadanika Solutions and your products and offerings
We are a Bangalore based start-up, dedicated towards building smarter technology solutions for the real estate sector. Sadanika means Home in Sanskrit. Our first flagship product is India’s first online application www.homebuy360.com that provides a login/user interface to the buyers. And this month we are launching another revolutionary concept around property search www.homefind360.com
Homebuy360 is a simple and intuitive to use internet application specifically designed for the real estate industry to make Builders and Buyers win. Builders can efficiently manage marketing, sales and customer connect operations - CRM - Leads - Booking - Documents - Collections - Customizations - Handover. Buyers can login to their Home Account and monitor progress and information relating to their dream home.
Homefind360 has Google like Simplicity, provides Information that Matters to property finders with proprietary Technical Superiority of search and property ranking algorithm. It is slated to change how people search property in India.
How did the idea for H360 come about?
During our journey at Infosys, we interacted with a lot of our-colleagues (prospective buyers) and also with various real estate builders/developers in and around Bangalore. The biggest gap that stared at us was the lack of smart technology that would help buyers find the “right” home as well as connect them with a segment of builders suitable for their specific needs.
We began exploring the “buy” process, while discussing the same with property buyers. What came out during those conversations was the idea of having a “home account” that was similar to a personal bank account, this sounded really exciting to them and they envisaged it would be very helpful. Most of them didn’t mind paying a small fee to get this.
At the other end of the spectrum, we also met new upcoming builders and excited them with a thought of having a simplistic application to efficiently manage their operations over the web. The application would have features such as Customer relation management (CRM), booking, documentation, collection, issue management and reporting. The promising part of the application would be, that it was going to be hosted on the Cloud and therefore would operate on the “pay-per-use” or “pay-over-time” model and with no upfront investment in hardware, installation etc.
Based on all this research, we validated our idea and got to the task of creating a simplistic, effective and efficient tool. We worked for several months tirelessly to bring homebuy360 to markets in Feb 2011. During the development phase we interacted with over 300 builders in Bangalore, Mumbai and Pune. While there was a willingness to adopt technology for operational efficiency and for better customer care; their biggest demand was a neat clear approach in selling. The commercials for such a proposal were never a hindrance. This is where the idea of homefind360 came into being.
Aren’t there already many players in this space, how are your offerings different from them?
There are 2-3 Existing ERP players in the market who have similar offering as our Homebuy360. But, they require huge upfront investment in servers, training & cost of running, are based on license/user based model, highly complex to use and takes time to implement.
Whereas what we have is cloud based technology with simplistic UI, requires no training and low cost of ownership over time. We have created a new/niche value for buyers through providing a login (something that didn’t exist). Our market-brand campaign addresses the buyer community as well. The pressure will soon kick in from the buyer’s side for builders to adopt homebuy360. We are challenging the existing competitor pricing model which is based on license fee.
With Homefind360 – there are few existing banner sites like - 99acres, Magicbricks, etc. and few listing sites like - CraigsList, HDFC Red, Sulekha, etc and potentially other banks might come up with a similar site as of HDFC Red. Most of them have a cluttered landing page which is confusing. They might have a good volume/traffic, but the search relevance and effectiveness are questionable.
We have created a Google like interface which provides relevant search results in a flash. We have emphasized on simplistic display so that the users can make have a better and engaging interaction with the system. At the backend, we focus heavily on information that matters with logic behind every search display. We have built intelligent profiling that suggest builders how to increase their visibility. Our current offering is based on outcome based pricing options (pay-per-click, pay-per-impression, pay-per-lead, pay-per-sale) can disrupt the existing banner advertisement based pricing model.
Tell us about your background
Kshitij Minglani (Co-Founder and Director)Kshitij has held leadership positions in areas such as Corporate Planning, Business Growth Strategy, Mergers and Acquisitions. Has successfully lead teams’, comprising of different nationalities. Kshitij has worked very closely with the senior management at Infosys. His love for travel and food has taken him places and his passion towards making business ideas work to perfection gives him an adrenaline rush.
Rajat Kothari (Co-Founder and Director)An avid reader and an ardent gaming enthusiast with more than 11 years of Infosys experience in Project Management, Technology Architecture, Cloud Application Development and Maintenance & Support Services. Rajat has worked with several fortune 100 clients that are leaders in the area of e-commerce and pioneers in web technology innovation. Rajat brings the technology-core competency to the team.
We founded the company in Feb 2010, but the founders came full time into it in Oct 2010. We are a self-funded company and our major capital investment till now has been on technology.
How many customers do you have currently?
Homebuy360 was launched in Feb 2011, since then we have roped in 12 paying clients (builders) and have expanded our operations to Bangalore, Mumbai/Navi Mumbai and Pune. We are very well received in the market and our unique concepts help builders increase sales, reduce admin costs and delight customers. Typically the ROI for them is 3-4 times with/over the lifecycle of a residential project. With both Homebuy360 and Homefind306 we would impact about 80K-100K home buyers in the coming year.
What are the advantages you have over your competitors?
We have also kept in mind that for us to obtain a decent market share, we would need to disrupt the revenue model of existing players which is primarily “banner” ads based. We would soon be launching homefind360, where the pricing would be similar to Google sponsored ads, pay-per-click, pay-per-impression, pay-per-lead and pay-per-conversion. The site would also have new ideas like “Group Home Buying”, “Rental Assist” etc for a very large moving population in India. With two complimenting products (homebuy360 and homefind360), we can use the same channel to sell our both the products. It also creates high entry barrier for new competitors who would look to join homebuy360 bandwagon.
Thus our business model is extremely tied up and very well knit and we strongly believe our cost structure, pricing model and marketing strategy are all market killers for us.
How are you generating revenues currently?
With Homebuy360 we generate revenue from Builders and Providers. We offer Pay per Use model with low cost of ownership over time. Pricing models vary from pay as you sell, pay over time, per project to one time annual charge etc. We encourage builders can charge back the fees they pay us to their buyers given the value created and provided to buyers through the online login. This essentially means, builders can use the application for free by transferring our fees to the buyers. We also generate revenues based on advertisements - usually when any project is nearing completion, there are several providers of electronics, furniture, furnishing, electrical appliances that need to reach to the home buyers.
With Homefind360 our source of revenue is from Builders, Brokers, Providers and Banks. Here we offer Pay-per-click, pay-per-impression, pay-per-lead, pay-per-sale and few banner ads.
Where do you see the home buying market in India and H360 in five years from now?
Next 5 years are going to be transformational years for real estate industry as it continues to grow leap and bounds. With large number of buyers coming from IT and High tech industry along with increased adoption of internet usage technology is bound to take center stage. Technology is also essential for industry to sustain its growth, increase its productivity and to serve the customers better. This is a perfect opportunity for new breed of entrepreneurs to develop path-breaking technology innovation for real estate industry.
Tell us about the team behind H360
Apart from the two Co-founders with a combined experience of 20 yrs, we have a core Technology team comprising of two head strong individuals who bring a combined experience of 17 yrs and a team of young Business Development guys who have previous worked at HDFC, 99acres, etc.
We currently have operations in Bangalore and Mumbai/Navi Mumbai and soon plan to expand to Pune and Chennai this quarter. By the end of 2011 we plan to have our operations setup in Bangalore, Chennai, Pune, Mumbai and Hyderabad.
We are currently looking to build a strong Business Development team in Pune, Mumbai and Chennai, and recruit head strong IT and SEO profiles in Bangalore.
YourStory.in wishes Kshitij, Rajat and the entire Sadanika team all the best with their startup journey. To know more about their products and services, please visit www.homebuy360.com or mail them at firstname.lastname@example.org
Chandan Raj | Bengaluru