Rental Marketplace as of today
- According to a report on Forbes in 2016, the house rental and PG marketplace in India was valued at $20 billion and is expected to cross $25 billion in 2020.
- The report also states the increase in housing units to go with increasing percentage of rent yielded compared to the previous year.
- Another report by The Economic Survey in 2016-17 concerning LiveMint, it describes that people migrating in India has almost doubled in 5 years, to an annual flow of nine million a year for 2011-16, from 5.5-6 million a year between 2001-11.
- Though the survey demonstrates the highest migration to Delhi, there were well more than 90 cities in India with yearly population growth rates of at least 3%. Against this, in 2012, the urban housing lack in India was estimated to be right around 19 million homes, with most by far required for lower-income households.
What Actually is SimplyGuest?
SimplyGuest provides fully-furnished and semi-furnished homes to singles, working professionals, and couples near their workplaces. The accommodation is completely managed and hassle-free; rent is inclusive of all monthly bills including electricity, water, WiFi, DTH, LPG, domestic help, repairs, and maintenance. SimplyGuest also provides added services like a bicycle on rent and meal delivery service to help you live a hassle-free living.
What Makes SimplyGuest Different From Its Competitors?
SimplyGuest provides a completely ready-to live house and also manages day-to-day operations of a home. It’s like having a homemaker on hire. All repairs, maintenance, bill payments are inclusive of rent. It also provides value-added services like a bicycle on rent, meal delivery, etc. to make sure you don’t have to go anywhere else.
SimplyGuest has an online expense sharing tool for flatmates to split expenses among themselves; these expenses then get settled along with the rent so that tenants don’t have to open their wallets every time they have to split bills. SimplyGuest also assists with deep cleaning whenever there is a need for it. Ultimately, the customers get predictable rents and a consistent, quality living experience throughout their stay.
SimplyGuest provides a curated network of house service providers like cooks, water can providers, housekeeping staff and certified meal delivery services. We want to integrate more services in the future and make a living alone still easier.
People think SimplyGuest is expensive compared to their competitors. In reality, it’s the opposite. Their competitors hide all the essential charges. Its same as ex-showroom price vs. on-road price. You can’t drive a car by paying an ex-showroom price. They also hide the fact that if you are the only person staying in a house, you will end up paying the entire utility bills. With SimplyGuest it’s what you see is what you get. There are no hidden costs.
Subbu Athikunte is a software engineer with deep experience in all aspects of software development. He worked at Apigee (later acquired by Google) before quitting to start SimplyGuest. He has worked on distributed systems, analytics, big data, cloud computing, UI, devops and nearly everything else in the field of large-scale software project
Ambareesha used to work on civil and PWD projects before SimplyGuest. He is very experienced in setting up and managing ground operations of infrastructure projects.
Mayank Pokharna has worked with Indian start-ups like Practo and Cuemath in their hyper-growth phase. In his previous role as chief of staff at Cuemath, he worked on streamlining multiple business processes to drive productivity and sales. At Practo, he was responsible for creating and managing end to end operations and business intelligence processes.
Growth and Future Plans
The company grosses around 1.9 crores per annum. They have 140 beds in private flats and another 27 beds in our hostel. Of the 140 beds in shared homes, 57% are occupied by women while men occupy 43%. In November 2017, they started their own ladies hostel that currently has 27 beds. The occupancy rates for beds at SimplyGuest hover around 85%.
The company is self-funded and bootstrapped. They have rejected an acquisition attempt from a major company who is trying to enter this segment. At current growth rate, they expect to offer about 300-350 beds in shared flats and 150-200 beds in hostels within a time frame of 12 months. They are also looking to raise capital, and in about five years we want to be managing 50k beds in shared flats and another 50k bed in hostels.