AURUMNSEQ2 FY2023October 27, 2022

Aurum PropTech Limited

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Management on call

Onkar Shetye

EXECUTIVE DIRECTOR – AURUM PROPTECH LIMITED

Hiren Kumar Ladva

EXECUTIVE VICE

Kunal Karan

CHIEF FINANCIAL OFFICER – AURUM PROPTECH LIMITED

Asha Gupta

INVESTOR RELATIONS, EY LLP

Mr. Onkar Shetye

Executive Director of Aurum PropTech Limited; Mr. Hiren Kumar

Key numbers — 31 extracted

100 billion

n the real estate businesses and consumer behavior of millennial and Gen Z shall make PropTech US$100 billion sector. Our mission is to revolutionize Real Estate with digital transformation enhancing transpa

93.3%

tech development, operations, data science and innovation. Our consolidated revenue has grown by 93.3% over the last quarter to Rs. 28.3 Crores. We reiterate that we communicated in our last quarterly

Rs. 28.3 Crore

data science and innovation. Our consolidated revenue has grown by 93.3% over the last quarter to Rs. 28.3 Crores. We reiterate that we communicated in our last quarterly call as our first pit stop. We are gear

Rs. 50 Crore

our last quarterly call as our first pit stop. We are gearing to achieve our targeted revenue of Rs. 50 Crores by the fourth quarter taking our revenue to ARR of Rs. 200 Crores. Let me know briefly talk ab

Rs. 200 Crore

achieve our targeted revenue of Rs. 50 Crores by the fourth quarter taking our revenue to ARR of Rs. 200 Crores. Let me know briefly talk about our partner companies and their roles in the four business clu

iciency cluster offering broker aggregation solutions for the real estate industry has achieved a 5% market share in its launch market Pune and is the market leader in the primary residential sale

rs,

ontinued to build its SaaS business in South-East Asian market catering to 47 rental property owners, and managed almost 60,000 tenant experiences worldwide. Today the platform processes US $6.9 milli

6.9 million

wners, and managed almost 60,000 tenant experiences worldwide. Today the platform processes US $6.9 million worth of rental revenues per quarter. While our acquired products and solutions accelerated their

Rs. 80 Crore

t stage. Aurum KuberX a loan origination platform has completed its first MVP and has facilitated Rs. 80 Crores of financing solutions for home buyers. We continue to build Aurum Liv a one stop transaction pl

Rs. 28.3 crore

f this quarter. Our consolidated revenue from operation for the quarter has increased by 93.3% to Rs. 28.3 crores as compared to Rs. 14.6 crores in the previous quarter. The revenue from the operations were R

Rs. 14.6 crore

revenue from operation for the quarter has increased by 93.3% to Rs. 28.3 crores as compared to Rs. 14.6 crores in the previous quarter. The revenue from the operations were Rs. 8 lakhs in the corresponding q

Rs. 8 lakh

es as compared to Rs. 14.6 crores in the previous quarter. The revenue from the operations were Rs. 8 lakhs in the corresponding quarter of the previous year. During the current quarter we have consolidat

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Guidance — 17 items

Hiren Ladva

opening

“Through these investments we believe that we will grow in strength quarter on quarter and year on year.”

Darshil Jhaveri

“Hi congratulations on an amazing set of numbers and hope to see further growth, so I just wanted to ask so that now our revenue has been ramping up so could we have some sense on what our cost side would be, so at Rs.”

Darshil Jhaveri

“50 Crores revenue per quarter would we be breaking even or what kind of sense do we see in this fixed cost investment and like where do see our cost going forward maybe if not this year maybe FY24 will we be breaking even in EBITDA and PAT could some sense be given on that”

Karan Kunal

“50 Crores of revenue in Q4 will not break even because EBITDA margins will improve from the current position as indicated in Q2, but definitely we will be not PBT positive at Rs.”

Karan Kunal

“The challenges in the cost will definitely be there, but we think in next financial year when we have accomplished full financial year with all the current acquisition that time we can definitely expect for this.”

Darshil Jhaveri

“I am sorry I could not get the part about in FY24 not our PAT level but maybe at EBITDA level we would be seeing breakeven or something or maybe that would come in FY25.”

Darshil Jhaveri

“So, the revenues have been consolidated and everything has been done so from now onwards the revenue that we are getting will be taken care of all the new acquisitions, so new revenue will be taking into everything into account right.”

Karan Kunal

“So, all the acquisitions that we have done are now consolidated so if you see the results which we have published, the acquisitions that we have declared in May has been just closed in October 15, so that is advisory so that will come into consolidation in the next quarter starting from October 15 so that is other companies that will get consolidated in the next quarter.”

Vikul Arora

“Now it is on the tech system so do not you feel not uncomfortable but kind of challenges, there are a couple of people who are experienced in the tech as well, so definitely there was some road blocks going forward as well.”

Onkar Shetye

“So we take your observation and we will keep a keen eye on it, but basically it is learning that a tech entrepreneur will go through about the industry purely from a tech perspective will be negated or will be subtracted with our experience of understanding that industry.”

Risks & concerns — 4 flagged

Let me now briefly take about our governance risk and compliance framework.

— Onkar Shetye

A key strategy to our business is implementing the best practices around governance, mitigation of risk and ensuring compliances.

— Onkar Shetye

I would like to conclude by saying that our businesses are build with an eye for profitable growth rolled with strong governance risk and compliance practices creating value for all stake holders of Aurum PropTech.

— Onkar Shetye

It has always been difficult to get a own house together so something has obviously changed why these things are looking viable now?

— Nitin Siddamsetty

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Q&A — 8 exchanges

Hi congratulations on an amazing set of numbers and hope to see further growth, so I just wanted to ask so that now our revenue has been ramping up so could we have some sense on what our cost side would be, so at Rs. 50 Crores revenue per quarter would we be breaking even or what kind of sense do we see in this fixed cost investment and like where do see our cost going forward maybe if not this year maybe FY24 will we be breaking even in EBITDA and PAT could some sense be given on that

Karan Kunal

To answer this question directly Rs. 50 Crores of revenue in Q4 will not break even because EBITDA margins will improve from the current position as indicated in Q2, but definitely we will be not PBT positive at Rs. 50 Crores of revenue levels because many of the businesses are still in growth model and it is a people intensive business where cost of IT resources are going up as we speak so retaining people those things are challenges. The challenges in the cost will definitely be there, but we think in next financial year when we have accomplished full financial year with all the current acqu

Hi Hiren. Thank you so much for giving me the opportunity. So my question is different about the challenges. What I found is Aurum for the last 20 years being in real estate sector and they are very good at it around the real estate and property, but at the same time when we compare with No Brokers and other PropTech company they are more into tech, so now Aurum has shifted towards real estate to tech. Do you people find any of the issue and challenges to be as tech people and face this challenges and how was the experience I just want to know from you guys.

Onkar Shetye

Thank you Mr. Arora a very astute observation of the sector and thank you for following our real estate vertical as well. We would like to say that our real estate experience of the last decade has given us substantial understanding of this domain which is itself complex in nature and which gets into our thought of building this ecosystem into four different segments with each segment requiring its own application of tech. Yes companies like No Brokers have started with platform of tech, but if you see our model of building Aurum PropTech in the last one year, we have applied our real estate d

Hello Sir my question is in the aftermath of Ukraine war the global scenario has disrupted a lot. So how the business strategy for our company has changed prior the war and post the war.

Onkar Shetye

Thank you so much for your question. It is a very crucial observation. Global scenarios do impact most economies and most businesses, however we are of the strong opinion that India domestic consumption led story of the real estate market, led by two factors urbanization growth, growth of urban population in India and secondly changing consumer behavior backed by digital adoption. These two pivots itself are good enough to sustain and build this business with a longer variety. There will be challenges from a macro economy perspective in the short term, but in the long term the real estate stor

Hi thanks for the opportunity. In one of the announcement sometime back you said that not to invest further in one of the acquisitions you have made earlier so just want to understand how do you evaluate all these investments that you have made and why was further investment is not being contemplated for the acquisition that you have made and basically how you evaluate these? Do you write these off or what is your accounting policy?

Hiren Ladva

So Mukesh probably the line was not clear but there were two to three questions you asked. Please correct me if our understanding was right. One broadly you are seeking to understand our investment strategy now that we have made the final investments is that the right understanding of your question. In one of the investments that you invested earlier you said publicly that we won’t invest further in that company in one of the acquisitions that you have made. I am specifically asking about that acquisition. So, Mr. Mukesh there are two stages typically to any investments that we go ahead with.

Thank you so much for taking my questions again so I just wanted to understand our broad vision right now? We are currently in investing in these 10 products and where we trying to focus on our prime areas so I just wanted to briefly if you could just explain where do we see this journey going may in the next three years or something where you want to add more products, we are looking for further acquisitions and just a broad kind of a flavor of what is our vision right now may be FY24 investing phase and then we have our complete set of product and value chain so could you just if possibly br

Onkar Shetye

Sure in the four broadly identified segments we have tried to pin down problem statements and go on to identify products and solutions in each of the problem statement and further gone on to either buy or build those as businesses or products that are addressing those problem statements. We have identified a list of around 15 odd problems statements ranging from investment finance to connected living and on those 10 of the products and solutions have already been either acquired and are into revenue already and some of them are being built so that is a direct I would say answer to the problems

Good afternoon. My question is relating to your product of CRM and broker aggregation tech for real estate, I just want to understand how does it work and because I myself have invested in three real estate tech companies so what does this product actually do broker aggregation tech for real estate? CRM position I understand actually.

Onkar Shetye

Thank you for your question. I will actually invite Mr. Hiren Ladva. He has been monitoring BeyondWalls closely. So Mr. Manish since sell.do is the CRM which you already understand about I will not dwell too much into it, but BeyondWalls is the broker aggregation platform that under the K2V2 investment that we have made we have launched it in Pune. Within six months of launching, we have been able to get more than 3,000 channel partners or brokers onto the platform. This network provides sales acceleration for the developer community to monetize and sell their inventory into the market right s

I was very interested in your student housing and your co-living operations? You run the entire thing, or you provide the software for it?

Hiren Ladva

As far as HelloWorld I assume that is a business you are referring to. In fact in co-living we have two business one is HelloWorld which is a completely operations enabled heavily through technology in terms of right from customer acquisition all the way to the living experience that we provide, the service management of the beds or the properties or the units that we serve to the tenants right so that is the first business. From a chronology of acquisitions that is the second in the co living segment. The first was the House Monk right which is a complete Saas and to your question yes that is

We thank all the investors and the investor community who have shown continued interest in this segment and more importantly Aurum PropTech. It is an ever-growing space exponentially rising and we would like you to please keep a keen eye on the developments. We are passionately building this to the benefit of all the stake holders, industries and investors likewise and from all of us a very Happy Diwali. We wish all you and your families the very best. Have a great Diwali and a prosperous New Year. Thank you so much.

Management

Speaking time

Hiren Ladva

Onkar Shetye

Moderator

Darshil Jhaveri

Mukesh Kothari

Manish Shah

Nitin Siddamsetty

Vikul Arora

Kunal Karan

Karan Kunal

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Opening remarks

Asha Gupta

Thank you Neerav. Welcome to the Aurum PropTech Limited Q2 FY2023 earnings call. It gives me great pleasure to welcome the management of the company represented by Mr. Mr. Onkar Shetye – Executive Director of Aurum PropTech Limited; Mr. Hiren Kumar Ladva – EVP – Investment of Aurum PropTech Limited and Mr. Kunal Karan – CFO of Aurum PropTech Limited. Before we start the call, I would like to remind you that anything that has been mentioned in the call which reflects any outlook for the future or which can be construed as forward-looking statements must be viewed in conjunction that the risk we face, uncertainties and risks are included but not limited to what we have mentioned in the prospect of file with SEBI and subsequent annual report. You can find it on our website. With that said, I now hand over the call to Mr. Onkar. Over to you Onkar!

Onkar Shetye

Thank you Asha. I am glad to connect again to the investor community in this sixth quarterly call under Aurum management. Welcome everyone and thank you for your continued interest and commitment to Aurum PropTech. We are living through a generational shift in our economy and society. According to us at Aurum, digital technology is the most important resource at the work disposal to overcame constraints and re-imagine our daily life in terms of work and family. We believe that convulses of the digital and physical homes is happening at a rapid pace. Let me first briefly talk about some of the recent events that had happened in this quarter in our economic landscape. Our visionary Prime Minister recently stated new India will not remain a mere consumer of technology, but India will play an active role in the development and implementation of that technology. The fifth-generation technology services are expected to unleash new economic opportunities and to societal benefits, serving as a

Hiren Ladva

Thank you Onkar. Good afternoon, everyone and sincere gratitude for your continued interest in participation in our journey. As you all know, technological advances are driving phenomenal innovations in every aspect of our life and hence everything today has tech attached to it including real estate. At Aurum PropTech, we firmly belief in vision of unlocking the potential of real estate sector through technology. Our philosophy for investment and acquisitions in PropTech is therefore aimed at the potential to build to an ecosystem of tech-enabled ventures across four focus areas, which is invest and finance, enterprise efficiency, costumer experience and connected living. Having started the PropTech journey in July 2021, the company has strategically acquired five ventures in PropTech space within a year as part of its inorganic strategy. Through these investments we believe that we will grow in strength quarter on quarter and year on year. Efficient capital allocation working closely

Kunal Karan

Thank you Hiren. Thank you everyone for joining this call today. The Board of Directors today have approved the results for the quarter ended 30 September 2022. I will take this opportunity to take you through some of the numbers of this quarter. Our consolidated revenue from operation for the quarter has increased by 93.3% to Rs. 28.3 crores as compared to Rs. 14.6 crores in the previous quarter. The revenue from the operations were Rs. 8 lakhs in the corresponding quarter of the previous year. During the current quarter we have consolidated the operations of HelloWorld Technologies Private Limited, a 100% subsidiary which we have acquired in June 17, 2022. The contribution of HelloWorld to the full quarter has contributed as revenue in the quarter as compared to the previous quarter. We have made revenue ARR of Rs. 100 plus crores at the end of the current quarter and in a position to improve it further in quarters to come. Our total income for the quarter has increased by 96.2% to R

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