How these former MyGate executives are redefining locker services for societies

India is the world’s second-biggest gold consumer after China. According to the World Gold Council (WGC), Indian households may have accumulated up to 25,000 tonnes of gold. Despite the expected rise in physical gold purchases, there is a massive gap in demand and supply for bank lockers.

These concerns have led to a noticeable shift towards the need for private safes that are perceived as more secure and free from the complexities associated with bank lockers.  

Aurm aims to solve these burgeoning challenges in the banking locker sector by providing secure, accessible, and automated locker solutions.

Incepted in April 2023 by former MyGate executives Vijay Kumar Arisetty, Suraj H S and Pratap Chandana, Aurm provides safe deposit lockers that are designed for gated communities. 

The startup leverages smart technology to create fully automated, military-grade lockers available 24/7, almost at the holder’s doorstep and fully insured.

Aurm estimated that by 2030, there will be 60 million affluent Indians needing safe deposit storage lockers in the top Indian cities. However, at present there are only 6 million bank lockers available across the country.

Thus, the gap between the demand for lockers and the availability of lockers will be around 54 million, according to the report that was commissioned after speaking to several banking officials, cybersecurity experts and data gathered from various reports published by the Reserve Bank of India. 

Talking about the deep research and consumer insights that preceded Aurm’s creation, Arisetty says, “To understand the nuts and bolts of setting up and operating locker facilities, I spoke to more than 1000 families, bank officials, bank locker security personnel and regulatory authorities. I realized that 90% of urban affluent Indians don’t have access to a locker. In addition, the existing infrastructure needs an upgrade to keep up with evolving methods of theft and armed robbery.” 

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Automated lockers with no human intervention

Aurm’s locker layout comprises a strong room which houses the lockers and a separate access area, all secured and managed through automation.

“It's almost like a bank ATM where you just go there, verify your credentials, get into the access room and then again, put your card and put your pin and your locker box will come out,” explains Arisetty.

“It’s a completely automated system and it's a modular kind. We just rent out space, and do the set up and then we give it to the residents for subscribing to those lockers. Residents can access it at any time of the day as it’s available 24x7 and can visit any number of times. So that's the way we have designed the system. No human dependence at all,” he adds.

Aurm’s locker also adds an extra layer of safety for valuables by being backed by an insurance company. The startup recently entered a partnership with Tata AIG, where the insurer will  underwrite each locker with Rs 25 lakh in  insurance, Arisetty said.

“We are happy to partner with Aurm to offer an innovative cover to insure one’s personal assets. Coupled with renowned Aurm’s security infrastructure and technology, Tata AIG’s insurance coverage for safe vault owners will provide them with ease of mind in protecting their high-value possessions,” Mrudul Murthy, Vice president, SME, Tata AIG General Insurance said.

In 2022, The Reserve Bank came out with revised guidelines for the hiring of lockers, under which the liability of banks will be limited to 100 times its annual rent in case of fire, theft, building collapse or frauds by bank employees.

Business model and traction

The Bengaluru-based startup rents spaces in gated communities and sets up the lockers services that are available exclusively for the residents of the apartment complex. 

It charges a subscription amount from the residents directly. The subscription fee ranges between Rs 10,000 - Rs 15,000 yearly, depending  on the rental fees the community charges Aurm.

“The charges are competitive and in fact, in most of the places, it is less than the bank charges. Bank, what they generally do is they charge Rs 10,000 per year, but they'll force you to take an FD or a minimum balance, or a mutual fund or an insurer. Then it becomes very expensive. But we don't charge anything extra. Only there is a minimum locking period of 6 months,” he adds.

Currently, the company has created a capacity of 2,000 lockers in Bengaluru across 8 gated communities with 1,000 lockers installed so far. And out of those, 800 have been subscribed. 

Aurm is witnessing huge traction for this model, says Arisetty. 

“There is so much demand that, while we install, within two weeks, it's getting sold out. While there are 1,000 homes in a society, unfortunately we cannot install 1,000 lockers due to safety reasons. At the moment we have capped it to 500 lockers per society. Unfortunately, all 1,000 homes don't get access to the lockers and we are trying to figure out how we can meet the requirements of all the residents,” he adds. 

“People prefer our lockers because they do not come with any cross sells like FDs, minimum balance account, MFs or insurance products. Secondly, It is conveniently within your gated community that can be accessed 24/7. And unlike banks all our lockers are insured. Home safes are compromised next best alternative as people don’t get bank lockers so easily. As our lockers are superior to bank lockers, consumers prefer Aurm lockers,”says.

Ways ahead

The startup is planning to expand to Hyderabad and Visakhapatnam in the next 6 months.

It further plans to tie-up with banks in a couple of months.

  “We are actually designing the product now for banks as well. It'll take a couple of months for us to get that out. But even banks can buy the system and install it in their banks,” states the founder.

The company is currently bootstrapped with support from friends and relatives, but  is seeing gradual venture funding interest. However, Arisetty feels they are not ready enough to raise funds at the moment.

“We are preparing our playbook. And a couple of VCs have reached out to us. I don't think that we are yet ready to raising money. It will take a couple of more months,” he states.