P.E. Analytics Ltd (PROPEQUITY) - Another Data Analytics Platform for Real Estate Players

I feel their current size is very small compared to the opportunities out there. An example is their valuation services business, where conservatively the TAM is 300-500 cr. annually, and they are only at 15-20 cr. revenues. Their main competitors are individual valuers who might not give the same level of standardization and turn around times. I imagine this vertical can easily reach 80-100 cr. in next 5 years.

Another way I have been looking at their business setup, is that their main customers are financial institutions and they are looking to build multiple service lines to increase their product offerings (e.g. valuation services, project construction monitoring, project prices, etc.). This is simply customer mining and a relatively low hanging fruit.

They have also been talking about building a B2C line of business, the details of which was hazy in the past. In this presentation, they have clearly highlighted their plans of going into asset light model of development management, and building a social media reach to generate potential leads.

So there are lots of opportunities and it will boil down to their execution skill. Samir is a veteran in this industry and has all the relevant contacts. Maybe @Deenar_Toraskar , @Chins or @nirvana_laha can add more as they have done significant amount of work on this industry. My notes from their presentation is below.

02.02.2024 presentation

  • Annual subscription fee is based on the vertical & #cities subscribed by a client. Fees is higher for Tier 1 cities vs Tier 2 cities

  • Construction finance reporting: 21 reports were processed in a single month in FY24 vs 5/month in FY23 (see image below)

  • Developer Management: In JV with Forbes Global properties (2 models shown below)

  • PropMonitor: Monitors under construction projects for banks and gives reports to them for release of construction finance payments

  • PropBuild: New B2B construction portal

  • Will double valuation business revenues in FY24 (8.7 cr. in FY24)

  • Clients increased to 205 (vs 190 in Q2FY24) in website subscription business. Retention ratio is 85%

  • Cash grows to 71 cr. in FY24Q3 (vs 65 cr. in FY24Q2)

  • SamirJasuja-PropEquity: Youtube channel for lead generation for projects (aims to reach 1mn+ followers)

Disclosure: Invested (position size here, no transactions in last-30 days)