Aurum PropTech Limited (AURUM) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Majesco Limited Analyst Call. [Operator Instructions] Please note that this conference is being recorded. I now hand over the conference to Mr. Diwakar Pingle from Christensen Advisory India. Thank you, and over to you, sir.

Thanks, Indira. It gives me great pleasure to welcome all of you for this analyst call. After acquiring the promoters and the promoter group stake in Majesco Limited earlier this year and pursuant to the closure of the open offer, the control of management of Majesco Limited is now with the Aurum Group. This is an introductory call that the Aurum management is doing to kind of appraise (sic) [ apprise ] analysts of the business model and outlook going forward. To do this, representing the management today, we have Mr. Ashish Deora, Founder and CEO of Aurum Ventures; Mr. Srirang Athalye, President, Aurum Ventures, and Director, Majesco Limited; and Mr. Onkar Shetye, Executive Director, Majesco Limited; and Mr. Kunal Karan, CFO of Majesco Limited. I'll now request Srirang to start the call with a brief background about Aurum. Srirang, over to you.

Thank you, Diwakar. Thanks for the introduction. Good afternoon all. Given this is our first call, I'll spend a few minutes in elaborating on what Aurum is and what we have done in recent past. We are a new-age technology-driven real estate company with a track record of value creation in sectors like telecom, aviation and renewable energy. Our experience in technology goes back to 1999 when we were the first company in the country to create a metro area network by laying optic fiber in Mumbai. Since then, we have successfully invested in multiple sectors and for last decade into real estate. Despite being privately owned, we have adopted a strong corporate governance and transparency culture, which has enabled us to attract institutional capital allocators and sovereign wealth funds like [indiscernible], [ Global Thinkers ], Goldman Sachs and CapitaLand in various ventures. Our real estate arm is actively engaged in development in Mumbai metropolitan region. Our flagship project, Aurum Q Parc, is one of the best built campuses in India and hosts international banks like Axis, ICICI, FirstRand and South African Metropolitan Group. I will hand it over now to Mr. Ashish Deora, the Founder and CEO of Aurum, a Harvard business school alumnus and someone who understands technology and real estate intrinsically. Mr. Deora will elaborate on Majesco's vision for proptech. Thank you. Mr. Deora, please.

Thank you, Sri. Thank you, Diwakar. Welcome, everybody. I'm extremely pleased to talk to the analyst community today post Aurum acquiring 35% stake and control in Majesco Limited. I'm glad to have all of you on the call today. The call will not be -- it should be started by actually acknowledging the confidence that each one of you have shown in Majesco over the past 5 years. It has been a very interesting journey that Majesco has gone through, right from demerging from Mastek to selling their business to a private equity called Thoma Bravo. And it has been an extremely successful and rewarding journey for all its stakeholders. Similarly, as a group, as Aurum, to elaborate on what Sri already mentioned, we have always focused on value creation for our stakeholders. And when I mean the stakeholders, of course, our customers, our team, the capital allocators, the investors, the banks, the lenders, the regulators and each one of us whom we touch in day-to-day of our lives. We are also very focused on some very important aspects of businesses. Personally, I'm invested myself in looking into environmental governance, some of the social aspects, and that is something that drives us and will continue to do so with renewed vigor, and we'll try to raise the bar with every new acquisition. Let me now talk a little bit about the size of the Indian real estate sector. Some of these data is already there in public domain and most of you must be knowing this data. But I would like to bring it out just to set the context of this call. The Indian real estate sector is expected to reach $1 trillion by 2030, USD 1 trillion. It is expected to contribute more than 10% to the GDP, the GDP in 2030. We have more than 100,000 registered real estate developers in India. The registered real estate developers today are -- can be divided between the ones who are well organized and ones who are not so well organized. We are seeing a trend of increasing market share of corporate developers in real estate sector, and we believe that this sector will be consolidated in the hands of organized developers in near future. Our sector is also increasingly attracting large global capital from sovereign wealth funds, from large international investors. This is helping the sector to become even more organized. So already, we see a trend of organized developers kind of making more active participation and capital also -- global capital also catalyzing that sector to become even more organized. We feel that as the market grows with compliance participants, as the market grows with more organized developers, the need for technology, the need for digital transformation will increase exponentially in real estate sector. With Majesco, we feel that it is our responsibility and an opportunity to bring digital transformation, improve the complete value chain of the real estate sector. There has been, in the last 5 to 10 years, a tremendous acceleration of technology adoption in India across industries. And we are all familiar with lot of these terms like fintech, medtech, retailtech, cleantech. We have foodtech. We have now edutech, [ celltech ] and all this. Technology has played a major role in pivoting the sectors. We all know that the scale and importance of real estate as an asset class and being a B2C business, it can be equated to sectors like financial service, education, retail and food. Again, over the last 5 to 10 years, we have seen extremely successful case studies in companies like Paytm transforming financial services; BYJU'S, disrupting education; companies like Flipkart and Zomato taking on their own respective industries. I would like to humbly point out here that Majesco has built a very successful business and in short term, impact the same last 5 to 6 years. And we feel that Majesco will again, once again, lead real estate industry on a similar path and will result into emergence of an integrated proptech ecosystem. And I'm going to repeat this word, integrated proptech ecosystem, couple times now. We also believe that having an understanding of technology along with real estate experience, we are best suited to create an integrated proptech ecosystem. So what is proptech? According to us, proptech is the usage of technology for efficiently creating, monetizing, maintaining and allocating capital to real estate. We believe that proptech is still at emerging stage and will evolve very rapidly in near future. Let me walk you through some peer sector analysis. 5 years ago in 2016, investment in Indian fintech sector stood at $260 million. Today, in 2021, as you all know, we have done super successful companies in fintech sector, and they have been commonly tagged as unicorns. Similarly, in 2020, investment in Indian proptech sector is around $300 million to $400 million. We think that proptech as a sector has started evolving and certainly has the potential to nurture multiple homegrown unicorns in next 5 years or so. Let me talk about some global proptech scenario, which is even more interesting. Globally, more than 800 technology companies in real estate sector are present -- 8,000 technology companies in real estate sector. Europe and North America, which has 17% of their global population, actually has 73% of these 8,000 companies. So India has a long, long way to catch on to digital transformation in real estate sector. As of yesterday, top 9 proptech companies listed in U.S. have a combined market cap of $100 billion. This is the data as of yesterday. Coming back to Majesco, our vision in Majesco is to build an integrated ecosystem, integrated real estate ecosystem with users of solar-driven interfaces, some personalized and dynamic content. We should operate this with API framework and support this with integrated contact center capabilities, which we have in house. We need to further drive this with data analytics to bring efficiency and enhanced decision-making into real estate sector. And of course, the challenge is to roll all this into one super app. That is what our idea is. We will be following an inorganic and organic path towards building this proptech ecosystem. We are in active conversations with the best proptech teams across India, and we look forward to integrating the products and solutions within our ecosystem. I will now like to invite Onkar, Executive Director in Majesco, to speak about our first proptech acquisition of K2V2, one of the leading CRM technology companies in Indian real estate. Thank you.

Thank you very much, sir. Talking about K2V2's acquisition. Well, in line with our vision, as very well elocuted by Ashishji, I would like to apprise that we are set to acquire 51% in K2V2 Technologies for a consideration of INR 40 crores. Well, K2V2 is a software technology firm providing software SaaS-based products, services and enterprise solutions required specifically for the real estate industry. It has a portfolio of proptech products like Sell.Do and Kylas. It also has a registry brokerage and digital marketing business. With this acquisition, we have jumpstarted in a way our journey to create India's first real estate technology ecosystem. K2V2 hold substantial market share in real estate CRM, sales automation and marketing. And since its inception, K2V2's software products and services have managed sale of USD 12 billion growth of real estate inventory. It has managed 15 million customer interactions -- sorry, 15 million customers, 450 million customer interactions as well. We can actually call Sell.Do the sales force software estate in India. With K2V2, we now have 200-people team, experienced team, who has a 10-plus years of real estate, software and marketing experience. The current market size of global real estate CRM is quite substantial. And we believe that flagship products like Sell.Do and Kylas of K2V2 are mature enough to be taken to global markets. This investment is in line with Majesco's strategy to build digital transformation in real estate sector by creating a proptech ecosystem, covering customer digital journey, enterprise digital transformation, property management platform, data stats and analytics and of course, investment and financing. We are at the right time, right place and with the right team to create a difference in real estate sector through technology. I will actually now pass on the call to the operator to open the floor for questions and answers. Thank you so much, and appreciate your continued interest in Majesco Limited. Thanks a lot.

[Operator Instructions] Our first question is from the line of Faisal Hawa from H.G. Hawa and Co.

So [indiscernible] going to build up an ecosystem by buying up different companies, which will be relevant to the industry and some [indiscernible] strategy where we keep on buying companies. But only in the case of BYJU'S, they already had a good central product which worked well for 10, 12 years, and the brand was slightly established. So in our case, that advantage is not there, except for the fact that you are already a real estate developer. So how will you really build up this entire ecosystem? And where will the funding come from?

So this is Ashish here. Thank you for your question. What I understood was that your question is around how are we going to build this ecosystem. Is that correct? Because there was some disturbance in your line.

Will we be building it up organically or it will be more inorganic finding synergies between the companies?

Right. So look, I think the way we see the business currently is the business has 3 layers. The first layer is the interface, which is really the app, the portal, the journey of the user persona. That is the first layer. And that is what we are currently building. And we have -- we want to completely sort of actively build that in-house and manage that. Then under that is the businesses, right? So for example, you have a customer side business, you have a developer side business, you have aggregators side business and things like that. For example, K2V2, one of the acquisitions that we have done, that is on the customer side because it's a CRM software. So that's the second layer, which we are getting more and more inclined to buy rather than build simply because we have some very, very smart teams and very smart products that are currently in touch with us. So that's the second layer. And the third layer, the bottom layer on this is the data layer, right, like how are we integrating data to the entire ecosystem, which is the data engine that we are looking to build that in-house as well. So to answer your question it's a mix of organic and inorganic, where the first layer and the last layer of interface and data is something that we would like to build and manage in-house. And on the companies, we are happy to buy some smart teams, smart products and smart companies.

We'll move to our next question. That's from the line of Arun Malhotra from CapGrow Capital.

Wanted to check a couple of things. One was what were the sales or revenues for Kylas and Sell.Do.? That's one. Second is can you take us through one of the projects, what was our role, how we were able to increase the sales of a real estate project? And what -- are our revenues linked as a percentage of sales or as a fixed revenue for the real estate developer? That's one part of the question.

So the revenue for Sell.Do is INR 20 crores for the last year, out of which INR 13 crores comes out of the CRM license revenue, and around INR 7 crores to INR 8 crores comes in from the marketing services that they do for their clients. These are all SaaS-based revenue. So they are not linked to any sales. Of course, the larger clients need more functionality of the product. And that is why they need to pay more per subscription. But essentially, it's not connected with any of the sales value. We have a model where the pricing is about fixed per license, and then there is scalable modular functionalities in that, which one subscribes to. And you have top real estate clients currently who are all our CRM at Sell.Do.

Sure. Secondly, what is the status of the real estate which we have in Mumbai? What is the tenancy? And -- that's one. And what is the cash value on the book?

So cash value on the book, I'll request Kunal to deal with. Kunal? Kunal is in Calcutta, but he is on the call.

Yes. So the cash value right now will be around INR 135 crores as in [ 31st ].

Sure.

So as far as real estate is concerned, which I think was your other question, we have now 180,000 square feet of real estate, which is fully built out. Obviously, due to COVID, that space has not been leased out. We are -- at Aurum, we already have, over the last 3 years, leased 1.1 million square feet in this micro market. So we understand the market better than most of the other players here. We think that as soon as the markets open up in next couple months, we will get decent traction for leasing into these 180,000 square feet. But the way I see it, this is something that the company already has. Leasing revenue will not be a substantial revenue going forward. However, it's an empty space that we own and to optimize that, we need to lease that as soon as possible.

[Operator Instructions] Our next question is from the line of Piyush Mehta from Caprize Investments.

Am I audible?

Yes.

You are, sir.

Exciting to hear about what you guys are doing. So I think part of my question was asked by the previous investor, Arun. The question was if I could understand the product life cycle a little bit. If a client comes to me, what all do you offer him? And what are the places that I'm charging him?

Piyushji, sorry to interrupt. Your voice is a little muffled. We are not able to hear clearly. We can hear you, but we are not able to comprehend the question.

Am I audible now?

Yes. This is a little better.

Okay. So -- What I'm saying is Arun had asked part of the question, but I wanted to know what is the typical product life cycle in terms of if I have a client, how does -- how he is the enrolled in and then what are the services that we offer and where all are we charging him and what is the license fee that you talk about? So what is the typical license fee amount? And who else is doing what we are already doing? Currently, who are our clients? And yes, so these are the questions to start with.

Sure, sure. So I think your question is more towards understanding the CRM product that is now a part of our ecosystem. Let me put it this way.

How do we pitch it to the client as in this is the product, this is what we do, and this is what you'll see the benefits that will accrue?

Noted, noted. So one thing is that both products, in fact, Sell.Do is specifically built out for real estate. That has been its single most USP. We have seen a lot of CRMs which are deployed with real estate players, but they're not specifically built to the real estate domain. So that actually has been built in such a way that it keeps in mind the requirements of the real estate value chain right from presales, sales to post sales. It's a completely seamless integrated CRM, which takes care of all these 3 modules. And this is also modular in such a way that if a player or if a client wants to obtain -- or opts for only a specific module, he can opt for a specific module, let's say, a presales, let's say, a sales or a post sales. Typically, presales module, which is deployed in a SaaS format, requires 7 to 10 days to be deployed after you close out the understanding of the number of licenses and number of users and the specific requirement for it. There is also a virtual pitch model in this called IRIS, where you can actually virtually speak to all your clients, all the real estate customers through the product, understanding virtually. You do not need any physical interaction. That module takes anywhere between 1 week to 3 weeks to be deployed depending on the availability of the relevant collateral required to market that product. So this is also quite crucial because of sales modules, which tracks all the negotiations, all the document flow, all the customer interactions, both the presales and the sales module work closely in tandem with each other, and they actually help with a better turnaround time for the sales cycle. The third module, which is the most complex module and which also has longer, I would say, implementation period, takes 30 days to get implemented, wherein the entire inventory of our real estate project is marked in that CRM. And you also mark various user journeys for the particular project. There's a lot of automation also built on top of post sales. And this automation is again a USP because this automation happens through omnichannel. So if you look at it, to summarize, between a week to a month is the implementation cycle this product. And that is also one of the single most -- single largest USPs of a CRM.

Piyush, I'd also like to add here that it's one of our matured team and product in our real estate CRM in India. And we spoke to many clients. It's the first acquisition that Majesco is doing. So we did speak to many of their clients. We -- each one of us here have spent a lot of time with the team to understand what they have been doing. And the 60-people tech team that they have in their development site is, I think, a very smart team and led by very, very smart promoters, the 3 promoters who have been working together for 10 years. I think this product is ready to go global. At least from Majesco, we will be able to probably put that tailwinds in the company and be able to take this product global. I would also like to say here that this is one product on the customer journey of the entire proptech ecosystem, right? I mean this is the first one, and it's one of the better companies in the country, but you will see some other interesting companies that we are in active conversation with over next few months, a few quarters.

Okay. So then at the start of -- in the opening remarks, you had mentioned proptech is somewhere around, say, $250 million, $300 million kind of an investment that have gone into proptech. And so I'm assuming that was in India. So there would be -- I'm believing that there'll be a few other players who are doing something similar, if not entirely similar. So who are the other large guys who are doing this?

So within India, there are companies, which are creating specific modules and specific products across different journeys. We haven't come through somebody who is sort of looking at creating the entire ecosystem probably because most of these technology companies don't have -- also don't have the real estate experience. And that is why for them to map the entire journey is also that much more complex. But yes, globally, you have several companies, and it's a lot more mature market now, as I was trying to say that there are, I think, 9 or 10 companies, which combined market cap is already $100 billion. It's a very, very matured industry in U.S. and Europe. One of the companies in that list is a company called RealPage, and that has been bought also by Thoma Bravo. And Thoma Bravo is the same company, which brought the Majesco's insurance business. So within 2 months of buying Majesco's insurance business, they've bought a company called RealPage, and RealPage is one of the bigger proptechs across globe.

Okay. That's very helpful. So just one last question. When you say -- so a typical tech product would do 2 things. One, of course, will make life simple for the user and other would be maybe increase efficiency or, as you mentioned, faster turnaround time. But is there a metric to measure these qualitative factor? That's my last question.

Yes. That's an interesting question. And it again brings back to having a larger vision of how do we have an integrated ecosystem of proptech. The existing product, the CRM product, does have that capability where you are able to actually map the user interaction that happens on the platform. So you will be able to give out -- the client or the developer will be able to get real-time analytics of what has been the data insight for that customer interaction. For example, if the customer is spending more time on a particular amenity for a project, he will be able to understand, "Okay, this amenity is going well. Probably I can use the same amenity spec in the next project." And that really helps in data-driven decisions. It also falls in line with our larger proptech ecosystem vision to have a data-driven decision framework.

To add to what Onkar just said, I mean your -- I think you are hitting it on the nail here that B2C really cares about simplicity, right? And B2B really cares about efficiency, right? So if you are mapping a B2C journey, then you really think about designing and experience to engage and convert and create loyalty with them, right? That's the real idea. And that is about simplifying their journey, to answer your question. Whereas when you look at B2B, when you are talking to the developers, when you are talking to the aggregators, then you are talking about how to enhance efficiency, how to enhance productivity. And there, we are sort of talking about digital process automation, right? We are seeing that how can we manage their workflow management and make that more productive. So yes, the simplicity is on the B2C side and efficiency and productivity is on B2B side. So we need to bring both together.

Okay. Great, great. I would love to follow over the next few quarters how our journey stands out. We'll also try and look over RealPage, the global tech that you mentioned. Good luck to the team and all the best for the future.

Thank you.

Thank you, Piyushji.

Our next question is from the line of [ Sunil Kumar Churya ], an individual investor.

This is [ Sunil ]. I just want to come back to the actual Majesco offer. It says according to offer letter Page #14, that the target company, the name is -- the name will be changed within 30 working days. It will not include any word, which says Majesco. So I would like to know what's the new name? Second, when you bought the company, Majesco, what did you actually have it in hand? As in -- I'm told that you have INR 100 crores of cash on books and 115,000 square feet. I would like to know the value of that -- the square feet which we hold? Two. And the third point would be, K2V2, how many divisions do we have? One was Sell.Do. What was the other one? I wish to know that.

I'm Srirang here. And your first question was the name change as was given in the open offer letter. And in the last Board meeting, the Board has taken up this topic as the open offer was closed, and Board has approved the new name to be Aurum Proptech Limited. And we will be moving towards completing the formalities after getting shareholder approval for that, and we will move forward with change of the name. And the new name will not contain Majesco at all.

So yes, second question was about the assets that the company held pre the acquire. And more or less, it's the same assets that company currently continues to hold. So it's a cash a bit in excess of INR 120-odd crores, which lies in the books of Majesco. And over and above that, we have 2 buildings of around 100 and...

112,000 square feet.

112,000 square feet. When we bought the company, the second building was sort of getting completed. That has now been completed and is ready to be leased. We expect and we hope that as the markets open up now and the leasing traction comes in, we will do that over the next couple quarters. So that's really the asset base. Onkar, do you want to take the CRM question?

Right. Absolutely. So interesting question on K2V2 and obviously a lot of curiosity around it. Again, bringing back to how it ties up with our larger software integrated ecosystem, K2V2 has got 2 products. One is Sell.Do. The other one is Kylas, which is built over the experience of the last 10 years of creating CRM products. We have done a lot of learning on Sell.Do and upgraded this CRM product to Kylas. Kylas is actually agnostic to any industry. It can be deployed to any industry. It is also built on a new-age microservices platform, which can be integrated with any omnichannel communication. That has been one of its USP. It has got inherent communication channels where multiple users can interact and use it at the same time. It does not have a cap on usage in terms of number of users. So a license comes at $100, and you can have n number of users using it at the same time. And the most important thing of Kylas is that you could also run any e-commerce platform on top of it. So these are the 2 products really that are available with the team right now. And of course, the team is also working a lot of automation in sales and marketing and also some new products that could be rolled out on the aggregation front.

Right, right. And what would be the top line for Sell.Do and Kylas, if you can brief me on that, last year?

Sure. Kylas is a new product. It has just been, I would say, rolled out in June this year. There's been a lot of acquisitions done around it. Sell.Do has done a revenue close to INR 13 crore. And bringing back to an earlier statement that we've done is that INR 13 crores of revenue is purely SaaS-based revenue. So this is all subscription-based revenue, which have got a recurring form in nature.

Total revenue is INR 20 crores, out of which around INR 7 crores to INR 8 crores comes from the marketing activities that we take up.

So the INR 20 crore is for Sell.Do, right?

Right. So INR 13 crores is Sell.Do plus INR 7 crores of automation revenue, put together is INR 20 crores.

INR 20 crores for K2V2 as our top line would be the right thing for us.

[Operator Instructions] Our next question is from the line of Manoj Dua from Geometric.

How much money would be needed in K2V2 every year to grow? I don't know what is the profitability and what is the investment needed to make this company grow. This is my first question.

So we have committed INR 40 crores to K2V2. And we'd like to bring to your sort of attention here that this INR 40 crores is staggered into 2 phases, into 2 parts. The one that will be an immediate tranche will be INR 18 crores. And in that INR 18 crores, we will be acquiring 40% of the company. So essentially, we are -- we have made it into 2 steps where INR 18 crores in the first tranche and INR 22 crores in the second tranche. The second tranche of INR 22 crores is conditional on the company sort of reaching INR 54 crores of annual run rate. So INR 18 crores now, INR 22 crores over the next 12 to 18 months. That's how we have done this INR 40 crore commitment to K2V2. I don't think the company will require any further cash as far as our understanding of the numbers are. I would also like to say that K2V2, by the way, has always been profitable. It has been profitable for the last 3 to 4 years. So it's been run by a lot of financial discipline and financial prudence, even now by existing promoters. I think just to scale up the products and scale up the markets, scale up the geography, they needed growth capital. And that is how we have committed this INR 18 crores plus INR 22 crores in 2 tranches. And as you would calculate INR 18 crores for 40% and then INR 22 crores for 11% is something in a way we have mitigated this INR 40 crores also into 2 different buckets. That's the structure with K2V2.

Great. And what would be our rental income after leasing all the land we have, approximately just what would be the amount?

Very, very difficult question considering what is going on in the market currently. But look, you can estimate the retail rental income of INR 50 as a thumb rule in this micro market. On a good market, on a good month, on a good day, you can probably get 10% more. On not such a good quarter, you could probably go 10% lesser. But I think INR 50 is a good ballpark number for rental in Navi Mumbai and the [ market ] region. This is one of the more mature campuses in Navi Mumbai. So we think that we will be able to sort of get at least INR 50 as and when we lease out.

And we have total leasable area around?

Total leasable area is around 112,000 square feet.

Okay. Do we have further any plan in residential real estate?

Look, there is no plan of doing any residential real estate in Majesco. We think that Majesco's real strength and value creation over the next few years will come from its asset-light strategy, from creating digital transformation, from creating proptech ecosystem. Getting into residential real estate will dilute our focus and divert our vision. And we would like to stay away from that.

Okay. My last question would be, any change in organization, any good hirings regarding this?

Absolutely. I mean we have a very aggressive hiring plans over the next 6 months or so. Also, our -- some of our Aurum team members have moved to Majesco, who are well suited to transition this company into a technology company. We have aggressive hiring strategy over the next 6 months, I would say.

Our next question is from the line of Faisal Hawa, H.G. Hawa and Co.

Can you hear me now?

Yes.

Yes.

So I mean what kind of C-level executives would you need to, I mean, really execute your plan to absolute success? Because this kind of ecosystem would be very difficult to find in India because this [ industry ] is not very well developed.

As you have rightly pointed out that in India, this is -- we are the first to implement this kind of an ecosystem here and something like this really doesn't exist in India. So we are in touch with multiple options. And as the plans are evolving, we have to recruit somebody at C level, but it's a very important recruitment decision. So it will not be taken in hurry. But definitely, when required, we will recruit the appropriate level required into the company. As Mr. Deora said, we have a very aggressive plan to recruit the best talent. And we will move forward with that.

Look to add to what Sri just said, this is a young business. This needs to be a flatter organization. I mean we all need the corner offices, we all need C suit offices. But we have a big IIT team now working with us. What we're trying to really do is considering that we have an opportunity to build something new, we have an opportunity to build something young, we could always look at a flatter structure with -- not so heavy on the C suit level. Of course, you need experience. Of course, you need to bring the structure to the organization. And we would like to balance that out. But essentially, if you see the teams, the way we are sort of progressing now, it's the investment team, then there is a data science team and then there is a digital experience team to service all what we are doing and then there is a product development team, right? And if you think about it, all these are not really very C-heavy businesses, right? As much as we have grown at Aurum in last few years, we have always kept it a challenge to keep the organization flat. And I hope that we are able to continue that same culture in Majesco as well.

You've been a property developer yourself in India last 3, 4 years, and you've had a fair amount of international experience also. So what are the top 3 problems that Aurum -- the technology or Majesco would like to solve for you as a property developer because you would be aware of both sides of the game now?

So we have now been in this business for 12, 13 years, and it is actually -- pointing out 3, 4 problems is really, really a tough one. We thought that we came from technology background, and we are engaging the best team, and we are engaging the best tools to capture data. And I can tell you that even despite we pushing so hard, this sector just doesn't have the culture of using technology and having data. So the problem statements are everywhere. If you want to start from a developer point of view, developers design and developers sell docket, they don't talk to each other, right? Because what you have designed and by the time you build that and by the time you sell that, there is a disconnect in that. And sometimes people do it for not such good reasons, but most of the time there is just a general disconnect. Also, when you look at the buyers, there is 42 months of unsold inventory now in residential real estate, at least 6 months ago. Now of course, post COVID, a lot of sales has happened and this unsold inventory number has come down. But if you see the sales, total brokerage that is being paid out, it is something like 5% to 6% now on an average, including the cost for digital marketing. To give you some data, we had -- I think last year, we sold some INR 370,000 crores of inventory and brokerage that has been paid is in excess of INR 20,000 crores. So I don't -- there is -- we have travel agents earlier, right? I mean if we needed to book, we needed to pay through the travel agent and the carrier used to pay them 7%, right? Even now that's happening in the real estate industry. Of course, the brokers and the channel partners play a very, very important role in real estate industry. So it's not that they will go out of the value chain. But the moment you start making decisions based on data, based on technology, that sector will change a little bit as well. Now when we look at the property management side, right, we have no data on how much energy efficiency is happening across campuses, across geographies, et cetera. So I can put this into 4 different buckets, 1 on the customer side, 1 on the developer side, 1 on the property management side and 1 on the financing side, and list 2, 3 problems on that, which we are trying to deal with. And what we have done is we have got the business analysts from our internal teams to write these problem statements that we are trying to sort of deal with while we are integrating proptech ecosystem.

To add to it, one thing that has definitely changed pre and post COVID is the adoption of technology on both sides, the consumer side, the B2C side, the B2B side and the B2B2C side. So that is going to really accelerate adoption and requirement for an integrated proptech ecosystem.

Developers who shied away from technology because they just did not understand technology a lot, now the need of the hour for them is to embrace technology because of COVID. Also now the buyers have become millennials, right? So they really don't want to visit 4 times to a campus to make a decision. They are happy to have a virtual journey. They are happy to see the project on a 360-degree view through our augmented and virtual reality and then just sort of visit instead of 4 times, probably 2 times to make a decision. So all these major changes will happen, and there will be companies like Majesco, who should be trying to lead this change.

I think you [ did ] to me so well. I mean now I can see that there are so many opportunities, and it is now adding just the strategy and the execution that you need to do at Majesco to really -- I mean I couldn't even imagine that there were so many things that can be addressed with technology.

Our next question is from the line of [ Malvika Mani from Enterprises Story ].

My question is around how the acquisition would work. Would the K2V2 team be working with Majesco? Or would they transfer their assets? And secondly is Majesco looking to acquire new companies or could be developing new products for the digital ecosystem you have been talking about?

So look, what we have tried to do with K2V2, and we are trying to do that with some of the other companies also where we are looking to invest is that we are investing 51% into these companies. I think the team is -- the teams are very, very smart teams. They are very mature teams. They continue to own 49%. The promoters continue to own 49%. So they are well incentivized to run the business very efficiently and to ensure that the product road map and the revenue road map is well aligned with the overall strategy of Majesco. What we want to do by putting in the 51% investment is to infuse our growth capital, have a strategic direction to the company. We want to ensure that we bring even more financial discipline in their businesses and we integrate that with the Aurum proptech ecosystem, the Majesco ecosystem. So essentially, that is the real plan that the entrepreneurship of these companies are not stifled by buying 100% into them. And at the same point of time, with a substantial shareholding of 51%, you are able to drive strategic direction to the company. That is what we are trying to do by having a magic number of 51%.

There is -- to answer your second question, there's actually a lot of work happening across the country in the proptech segment. And a lot of work happening in all the areas that we are keen to integrate into our ecosystem. We do understand and recognize that the growth is going to be in an inorganic way by acquiring smart companies and smart teams with good products across the country. One thing that I would definitely like to bring your attention to is that this growth is going to be similar to what happened in the fintech industry over the last one decade. From 2011 to 2020, fintech has really grown exponentially, and it started all in 2011. And similarly, there were young teams, who got infused with growth capital between 2016 to 2021. I'll just give you a data point, that close to an investment of around $2 billion was made in the fintech side in India in 2016. And we all understand, and we all know where fintech has reached today. So if we draw a parallel to an industry, which is proptech, which is basically taking tech to real estate, I think we are looking at a large growth story here.

As there are no further questions from the participants, I would now like to hand the floor over to Mr. Ashish Deora for closing comments. Over to you, sir.

So thank you, everybody, to participate in this very engaging call. It's my privilege and pleasure to sort of try to bring some thought leadership into the proptech sector per se. I think the sector is in its evolving phase. It's testing to grow. It's bound to grow. Real estate as an asset class is one of the largest asset class, and it needs to be transformed. It needs to be digitized. It needs to be disrupted. And it needs to be democratized. And we at Majesco will try to play a humble and active role in creating this proptech ecosystem. I thank each one of you to participate and actively engage with us, and I look forward to engaging with you in the future.

Thank you, members of the management. Ladies and gentlemen, on behalf of Majesco Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.