Aurum PropTech Limited (AURUM) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Aurum PropTech Q3 FY '21-'22 Earnings Conference Call, hosted by Dam Capital Advisers Limited. [Operator Instructions] Please note that this conference has been recorded. I now hand the conference over to Mr. [indiscernible] from IDSC Securities. Thank you, and over to you.

Yes. Thank you, Zed. Good afternoon, everyone. On behalf of DAM Capital, we welcome you all to Q3 FY '22 Conference Call of Aurum PropTech Limited. I take this opportunity to welcome the management of the company represented by Mr. Ashish Deora, Founder and CEO of Aurum Ventures; Mr. Srirang Athalye, President, Aurum Ventures and Director of Aurum PropTech Limited; Mr. Onkar Shetye, Executive Director of Aurum PropTech Limited; and Mr. Kunal Karan, who is the CFO of Aurum PropTech Limited. So I will now hand over the call to Mr. Srirang for his opening remarks.

Thank you. I'm Srirang Athalye. Good afternoon all. I thank everyone for joining our Q3 FY '22 earnings call today. This is our third quarterly call as Aurum management, and I'm glad to have all of you once again on this call. As I mentioned last quarter, we, Aurum Ventures, are a new edge technology-driven real estate company. Aurum as a group is a value investor with a focused approach on long-term investments. At Aurum, we focused on investing in businesses having potential to disrupt the industry. We have a passionate and out-of-box approach to explore untapped opportunities, which will enhance value for our stakeholders, including customers, capital allocators, investors, society at large and our own team. Successful and quick turnaround is one of our key strengths, which we have achieved over years through an efficient and effective use of capital. We will continue to focus on building products and services in real estate and in proptech. Now I will hand over the call to Mr. Ashish Deora, Founder and CEO of Aurum Ventures, to elaborate more on proptech industry and how well we are poised to grab the opportunities. Over to Mr. Deora. Thank you.

Thank you, Sri. Welcome, everyone, and I'm pleased to engage with all of you once again. . With our interactions over the past 2 quarters, we have tried to communicate that as a company, we are taking steps to digitize and democratize real estate sector. In this quarter, we have bought a few more steps towards creation of an integrated proptech ecosystem. We are witnessing significant transformation in proptech globally, and we are keeping a keen eye on how to bring massive transformation to real estate sector through Aurum Proptech. I would like to now deep dive on the thesis behind our recent acquisition of Grexter Living, old living company based out of Bangalore. We here at Aurum PropTech believe that real estate is undergoing a fundamental business model change, enabled by digitization and the growing need of shared living. A redesign of built out spaces is important in a post-pandemic where consumers are evaluating to move to properties, which can be scaled up and down on basis of the demand. This would mean that property owners would need to provide on-demand, customizable and scalable access to spaces, amenities and services. While the traditional real estate approach sees real estate as a product, we at Aurum PropTech believe the real estate as a service, which we are calling here as RaaS, will keep increasing its market share in near future. RaaS in living or co-living would mean to be customer-focused by providing a space that offers amenities, flexibility, scalability and the sense of community that keeps users engaged. Over last couple of quarters, we have been on an inorganic growth journey through acquisition of SaaS products like sell.do and TheHouseMonk. Through Integrow and now Grexter living, we are building the synergies of using our own SaaS products and providing real estate as a service. We believe that shared spaces and connected living will become the new normal. Multiple research reports in India and outside India talks about exponential growth in this segment. Last quarter, we acquired rental management platform. And this quarter, we have acquired a co-living company. This is another solid step towards achieving our objective of creating an integrated proptech ecosystem. I would like to now hand it over to Onkar, Executive Director Aurum PropTech, to speak about our acquisitions, their synergies and our other initiatives. Thank you so very much, once again.

Thank you, Mr. Deora and Mr. Athalye. Thanks to all investors and participants for taking time and joining our call today. I would like to focus on updating you about our acquisitions and what we envisage to do in the coming quarters. As you all know, that over the last 3 quarters, we have done 3 acquisitions and the fourth one in this quarter. First was 51% stake in K2V2, a Pune-based software technology firm. K2V2 was a pure SaaS player with a flagship CRM product Sell.do. We have realigned their business model and introduced a broker aggregation platform, BeyondWalls, for brokers. BeyondWalls helps real estate channel partners and companies digitally launch products on its platforms and drive velocity, leveraging the channel partner network. It has a subscribed base of real estate channel partners registered on its network who are provided with multiple benefits like marketing collateral, digital help to generate leads, real estate knowledge and trends, data and technology tools. The platform aims to build an engaged channel partner network that is rated, reviewed and certified to be the best at real estate selling. The promise to channel partners is to help them grow their businesses while the promise to developers is to drive sales velocity. Developers who launched their products of projects, they launch fees to the platform for project launch and are then built on pro transaction model for all transactions done on the platform. The broker work on a premium or a subscription model to access special features and are also a part of royalty programs. The platform gets paid per transaction closure. BeyondWalls for brokers were launched as a pilot in Pune and has got a good response. With the addition of this product, we have been able to scale up the revenue from INR 18 crores ARR at the time of acquisition to INR 27.2 crores ARR in Q3 2021. This quarter, we look further to launching this platform in other cities like Mumbai, Bangalore and Delhi. Second was Mumbai-based asset management company, Integrow Asset Management, where we invested 49% for a value of INR 10 crores and INR 15 crores in debentures. We have aligned Integrow's business model in line with K2V2 and THM, TheHouseMonk, wherein K2V2's and TheHouseMonk's SaaS products provide demand-supply real estate data intelligence. And their tech platforms provide control on sale, lease and monetization of real estate projects via BeyondWalls, Grexter living and hence, control on certainty of investment returns. Thus, it makes a solid proposition for a data-driven investment asset management platform. Third and recent one is Monk Tech Labs on December 17, 2021. The Board of Directors of Aurum PropTech approved the acquisition to effectively hold 51% of share capital of Monk Tech Labs, Singapore. TheHouseMonk is their flagship product for an aggregate consideration of USD 2 million. The deal is a mix of debt and equity infusion of USD 5 million in THM. It is a B2B SaaS platform company focused on rental management and real estate. The investment is in line with Aurum PropTech's strategy to create an integrated digital and technology ecosystem focused on complete value chain of real estate. THM has an end-to-end SaaS platform to manage real estate with 4 products, 3 core property management system for portfolio management; 3 ops, operations and management suite; 3 XP, a platform to elevate tenant experience. THM [indiscernible well in our connected living segment of proptech ecosystem by bringing on B2B real estate managers, asset owners and landlords on to unified platform and aggregating supply of rental real estate. With this, I would now hand over the floor to operator for Q&A. Thank you very much, and appreciate your continued interest in Aurum PropTech Limited.

[Operator Instructions] The first question is from the line of Sanjay from Capital.

And I would just like to ask you, I mean, who are the competitors in this space I mean in domestic as well as international business?

Thank you. We actually [indiscernible] PropTech ecosystem where competition is fragmented. We have a mix of various competitors operating in individual clusters of the 4 segments that we have identified. If I name a few, a few of them are approaching it from the discovery side. For example, No Broker, which just became India's first unicorn. They are approaching it from a transaction model, where the focus is on discovery of real estate and facilitating transactions on real estate. The others are central living all solo, which fits in the shared spaces or co-living segment. Similarly, players like AWFS table space fit in the shared spaces segment of co-working. We also have SaaS platforms like Athena Complex and MyGate, which are SaaS-based political management subscription-based models. Then we also have some competitors like HomeLane, LivSpace, which are operating in the furniture rental and interior design segment. Loan aggregation and loan origination is also a huge space that is a crucial part of the entire ecosystem where we have players like basic home loans, [indiscernible], EasyLoan and so on. The VR and Metaverse is also heating up quite a bit, where we have peers like SmartVizx [indiscernible] operating with their individual products. On the enterprise side, we have supply chain platforms like build supply Infra.market, which are facilitating demand aggregation and supply side optimization. In a nutshell, if you look at the competition on an integrated platform level, we do not find a single player who is looking at it holistically and joining all the thoughts of the ecosystem. I hope I have answered your question. I would also want to hand over to Ashish Deora for further

So we have this conversation all the time internally as well Mr. Sanjay on how to kind of approach the competition landscape. And as Onkar said, that there are lots of companies doing lots of things currently in proptech. And that is why we are trying to integrate our various founders, and we are evaluating acquisition opportunities as you see every few months while we are building some of these products internally. So at the proptech ecosystem level, we haven't seen much competition currently. But yes, at product level, we'll always have great companies and great competition and great opportunities.

Yes, sir, this answers my question. And if I may ask one more thing that when do you think that all these acquisitions which we are doing since last 3 to 4 quarters to move ahead with some revenues and profit level, sir, on this?

So we do track these companies for very closely as that when we start right from the time we start into the due diligence and how -- what is the behavior of these companies: how are they looking at revenue, how are they looking at growth, how are they looking at value, how are they looking at capital, how are they looking at teams, how are they looking at product, how are they looking at tech, et cetera, et cetera. And there is a regular tracking mechanism. I would request Onkar to give you at least for K2V2, which is now 6 months old from our investment point of view on how K2V2 has grown in last 10 months -- last 6 months despite being a 10-year old company. So K2V2 was found sometimes 10 years ago and excellent entrepreneurs and how we have been able to put growth capital with them to kind of let them grow -- enable them to grow over last 6 months or so on some numbers, Onkar to probably get those numbers to you.

Thank you so much. K2V2 has been an interesting play for us on 2 fronts. One is that we have been able to get access to immense talent. They were a 200-people team when we acquired them. We have grown to 237-people team now focused on developing tech, delivering tech and also servicing tech to the B2B real estate player. After introduction of an additional product or a platform in addition to their CRM Sell.do, we have been able to augment and augment the revenue numbers. A few clue key metrics that I would like to tell you on K2V2 are as follows. The annual gross transaction value run rate for the quarter of 2021 is INR 185 crores. They now have an annual revenue run rate of INR 27.29 crores as of quarter 3 2021. The developer relations and business accounts have grown to 473 units in quarter 3 2021. So these key metrics are constantly being tracked with all investments, and we are always on the trajectory of growth where we intend to better these key metrics for every investment that we.

Essentially, ARR which was around INR 28 crores a quarter ago is now at -- sorry, was at INR 18 crores is now at INR 28 crores in this quarter. That is how K2V2 has grown over 1 quarter. But look, these are very early days with these companies. We have just kind of started to work with them. We have only bid in this journey, I would say.

Okay. Okay. And sir, if I may ask one more thing on talent management. I mean I see that the IT industry is facing some challenges on the talent side. So are you even facing these challenges? Or are you able to maintain some talent in line with the real estate tech?

It's a challenge that Tech industry is facing. And there is no sort of secret sauce that we at proptech or any of our companies have. I mean we try to do more and more team engagement, et cetera. But I have not really sort of found any secrets off to this challenge that the entire industry are facing. Probably Onkar can speak about some of the initiatives that we do with some of the premier institutes because of which we get very good talent fairly quickly.

One benefit that we have had is the understanding of our investee companies in the IT sector and hiring in IT sector. In Pune and Mumbai, we run a unique model of internship and on boarding program, wherein we tap into young talent, train them specifically on new tech relevant to our product development and onboard them onto our processes. It has been a successful model. We've been able to run this fairly well in COEB, Pune and IT Bombay. With IT Bombay, we have a very good pipe now of interns working with us on various product development initiatives from data science to blockchain to AI and then work on full time -- continue to work on full time as an engagement model. So that's been something that we've been able to do quite successfully.

[Operator Instructions] Next question is from the line of Rohith Potti from Marshmallow Capital.

Thank you for the opportunity and for the detailed commentary. I mean I find it very, very embarked on quite interesting. So I have 2 questions, given that we are following an acquisitive growth. So if you answered this before [indiscernible] apologies for having to repeat, there is curious quantitatively and qualitatively, what are the parameters that you look at before you zero down on a company which you think can be brought into the Aurum's fold, number one? And once the company is brought into the family, then how do you track its performance, let's say, over 5 years? So what -- how do you ensure that it is meeting the targets of the long-term strategic plan that you have for that particular business? And thirdly, on the acquisition itself, I was also curious once the company is brought into the fold, I mean what do you do? Do you -- I mean, to replace the top management and bring your own operational and strategic expertise into the company? Or you let the existing founders and management run the business while providing support to them in areas where you think you can fill the gaps, if there are any?

Okay. So we are meeting at least 15 to 20 companies every month to identify out of 50, 60 companies to select 1 or 2 companies to take them to the strategic investment or partnership or the acquisition route whatever -- however we want to define that. This acceptance ratio is even lesser than a Harvard University. So we have like to take it to like less than 2% of the companies that we are meeting. We spend a lot of time with the founders, with the entrepreneurs, with the team to say that, look, what is their philosophy, why are they doing this, what is their background, are they in this for long term or not, and things like that. So that essentially is the first check. A lot of companies kind of make us uncomfortable because we believe that probably the entrepreneurs, in our view, are not keen to carry on for very long or are not committed to carry on for very long. Then, of course, is our own segments, our own 4 segments that we have, we are building products and services and how well they fit into these segments, how well their products and how well their services fit into these segments. So that is very important. Third very important thing is how big is that market, what they are doing globally and in India. Fourth is what are the global benchmarks of these companies. So who are the global competitors? How well are the global competitors matured even if it's not such a mature product in India currently? And then, of course, the business plan and what is the ambition that the company carries, right? So this is -- these are some of the things that I kind of look at. And everybody in this room currently, Sri and Kunal and Onkar have their own metrics to kind of look at various other things around that. And then I'll request Onkar and Sri to talk about that a little bit as well.

So in terms of quantitative and qualitative evaluation, we have a 4-stage process to evaluate every start-up or every company that is into the proptech space. First is the product understanding. We test the product on our own projects. We run the product ourselves, use it ourselves and see the soundness of this product. There's a tech team that looks into it. The second thing that we check is the tech stack, the relevance and the freshness of the tech stack. It often happens that products are good, but the tech is a little obsolete. It is not as relevant or as new as the requirements of the industry today. The third is the founder understanding of the business, the tech and the sector is something that we gave a lot of prominence qualitatively on. The fourth and a very crucial one is the business plan and the trajectory to growth. Does the team have an appetite to scale up the business? And do they also have the acumen to understand the scaling up process. And the fifth one essentially is alignment on vision, which Mr. Deora talked about, which is where we see the product suits and fits in our segmentation of proptech sector. We spend a lot of powers on these together as a team, along with our tech teams. And after completion of due diligence and the competitive analysis of peers in this industry and globally, in India and globally, we come to a decision about whether it is an investment go on.

Yes. Srirang here, Ashish and Onkar have covered most of the points, but we are also in a unique position because we have great experience in real estate for the last 10 years. So we are able to judge the usability and the relevance and the need for the new software, which are being developed quite fast. And many times during our due diligence, we are able to use our live locations as a test -- to test whether the software is matured enough, whether it's able to withstand the scalability and market demands as such. So that gives us a unique ability to gauge these new start-ups in terms of their relevance and their sturdiness. That helps in selection. And initially, the question was asked, we definitely, after acquiring the companies led the promoters and founders run the companies and take them to the next hike. We only monitor. We are aiding them to grow, and we are aiding them to grow, giving them enough ammunition in terms of financial strength. We relieved them of all the issues like day-to-day management, statutory compliances that our back team can take care of it, and the entrepreneurs are given full freedom and full time to achieve their dreams to make their companies larger. I'll give it to Ashish now.

Rohith, I think that kind of answers part of the question on how we acquire and Sri did clarify we have not replaced the top management, and we never intend to replace the top management. In fact, we are looking to buy into companies where the top management is solid. Our idea is to put more tailwinds in these companies rather than trying to do something dramatic there. When it comes to post-acquisition on the tracking mechanism, we have operational controls and the financial controls and the statutory controls separately being tracked, on some of them on a monthly basis and some of them on a quarterly basis. So that's something which we are keeping a very tight lid on including the -- how the money is being spent on almost a daily basis on all these companies. That is how we are building these companies. So this is our acquisition tracking strategy, absolutely working with the top management never with the intent of replacing the top management.

This is very interesting and useful. So if you could elaborate a little further and deep into [indiscernible] power, that will be great because earlier in the call, you mentioned about, I believe, K2V2 is a 10-year-old company and at an ARR of INR 18 crores. So how is it exactly that Aurum contributes to scaling of the business is something which -- it will be helpful to get more details on? And also curious to know, do you see the acquisitive approach to savings Aurum itself and within the company itself? So how long do you think the strategy will continue? Or do you see yourselves having a bank of companies you're comfortable and letting them grow organically down the line?

So what do we bring to the company for them to grow exponentially, I think I'll ask Onkar to also address and add if there's something that's important. But to your second question, we think that the company -- companies are currently valued reasonably. And we believe that there is a lot of upside potential to the companies that we are looking at, which we have already acquired or we are looking at acquiring. But having said that, at some point of time, if you see there's inflection point and there is not a reasonable sense in terms of numbers, we will -- we are happy to step back. So it's very difficult to give a time frame or a number to how many companies. In fact, we have sat back on a couple of companies where we thought that they are great people, great products, but we thought that their valuation was not conservative. It was on a bit aggressive side, and we were happy to let them go. As far as what we bring to the companies that we are working with, I will request Onkar to please talk to.

So it's a unique situation where the investee companies like K2V2 have a sound understanding of the great teams to build tech. First and foremost, we bring our understanding of real estate segment on to the table. We primarily, point in case, K2V2 have been able to change the business plan for -- from a pure place SaaS platform to a platform built on SaaS, effectively increasing its revenue potential from a SaaS to a transaction model. That has been one of the key drivers that we have brought on to in case of K2V2. And similarly, to look at all wealthy companies and understand their existing business plan and realign it to the requirements and our understanding of real estate. The other thing that we've got to the table is we have been -- we've built a huge fulfillment center, which effectively works together with these investee companies in delivering their products to the recipients. The fulfillment center is built to a capacity of 1,600 capacity. And we have activated around 200-odd operational seats there, which are working day in, day out on ensuring that these products are delivered successfully to its right usage. The third and foremost important thing that is brought on to these companies is integration and synergies with other companies in the property ecosystem. For example, K2V2 and Integrow Asset Management has an ideal synergy where K2V2 is able to do data-driven -- sorry, demand side -- demand and supply side data intelligence and whereas Integrow comes in as an asset management company and is able to pack that mandate with the account and effectively help us build a larger asset under management portfolio where the same asset is being dipped -- double dipped twice once under the asset management portfolio and the second under the transaction model. And further on, when we add more products to the ecosystem, you'll have the triple and the fourth quadruple report also happening on the same real estate product that passes through the entire value chain. So this is the value add that we have been able to bring on to all these businesses that we have invested in.

I just like to quickly add only one point to what and Onkar has elaborated that this is all -- we are also bringing Patience capital. We are bringing conservative capital behind them. And we are trying to bring a hyper-growth mindset with that to say, "Look, the capital is around, use it conservatively and try to grow in a hyperactive manner." So that's something that we have a lot of conversation with our partners around these subjects.

This is fascinating as well. Can you please explain the K2V2 model a little more? I mean what -- when you talk about an ARR of INR 27 crores, what exactly is the composition of the ARR? And how sticky is it and how recurring is it?

Sure. So I'll give you a quick bifurcation of the ARR with K2V2. The ARR with K2V2 has now grown from pure SaaS to a SaaS plus agency plus our platform model. The SaaS revenue, which is a recurring form of revenue stands at INR 13 crore ARR. The digital or services revenue has been added to it, which gives us a footprint into the door of account relationship and helps us build that relationship effectively with the developer or the B2B player is at INR 5 crore ARR. And the third model, which is the broker aggregation platform, the BeyondWalls broker platform, wherein we go on to take up a transaction model business. So we have the CRMs on which the platform is built, which helps developers launch their products. In the back end, you have brokers signing up for the CRMs and getting marketing collateral, data intelligence leads, real estate knowledge and effectively helping them close these deals better further. And we are paid for the outcome of this transaction closure. So effectively, tech is enabler for a business where the developer is spending for digital marketing. The broker is getting the output of digital marketing and is able to be the sales force of the real estate developer helping him close transactions, and we are getting paid for the transaction -- for the revenue coming in from transaction as a percentage fee. So this is the mandate model that we've been able to introduce, which has added in the first quarter of introduction, INR 9 crore to the revenue, INR 9 crore ARR to the revenue. I hope I have been able to explain the K2V2 model.

Yes. This was helpful as well. One last question. So I mean, you are -- the journey you are on is very unique. I believe as a company in India, so I mean, for an investor for a long-term patient investor like yourself, what are the metrics one would you think a long-term conservative investors should track to understand if you're on the right track, let's say, 3-year, 5-year metric, that would be great as well. And that's my last question.

Would very difficult to answer this question in a quantitative manner. But as a philosophy, I can tell you because we can't talk about in 3 years or 5-year numbers. But as a philosophy, I can tell you that we are focused on revenue, and we are focused on value. So you would see that we will try that more and more products going to the revenue pool over next multiple quarters. And while we do that, it's very important that the value of our products and the value of our investee companies are going up as well. So these 2 are for us defined metrics internally. However, we keep a very, very tight laid on ensuring that we are not losing money to chase this growth. So it can be a slower journey, but it will be definitely a journey which is not led by capital chasing growth and capital chasing revenue.

The next question is from the line of [indiscernible], an individual investor.

I have one request for us. I know you guys are actually building this ecosystem. If possible, if you guys come up with the investor presentation where you can actually show [indiscernible] I can understand what are the building drops that you have acquired so far, how we are going to build this ecosystem request. My question is on the B2C side. So you guys have solution for B2B where a developer wants to sell that property, use your tools to sell it, but at the same time, like if you just look at the west, if anyone wants to sell a property, for example, in the U.K., the home websites Purplebricks, where a customer can just go and log in and give all the details and then they will help the customer to send someone to home where they come and take the pictures and create a design of the house, the layout of the homes and then show the proper not 3 dimension video tour and then and helps the customer to propose the add. So once the ad is posted, the customer has given a choice to pose this ad across all the channels, like it could be Zoopla, it could be Rightmove, It could Primelocation, it could be on every location just a single click. So once that ad is post and then no customer can actually allow the user to request for viewing and then customer can manage the viewing by themselves. So that are working on any such solutions for your acquiring of [indiscernible] or that is my first question. The second question is I live in U.K., I think I did [indiscernible] detail event to someone like this is not that far and something else. So the reason we bought property this is one new situation, even though we live in a Western world, the thing is land. For example, if a customer wants to buy property, they go to the website, they like it, then they call their estate agent to book their viewing. So here, there are many stakeholders. The customer who wants the property and the agent who is actually helping the seller to sell the property and the one that is done, then arranging the newbuilding [indiscernible] accepted. And then solicitors, so et cetera, brand and property such agencies where they go, still all the such data, all the information of the property. All these processes manual. So there is no single platform where we've begun to access to all the stakeholders, where buyers, sellers or agent, the bank, all the property research companies and all where everyone is actually on the same platform, the communication is very easy over with digital. So you don't have to lay on ex functions that real estate agent, -- as of earlier you don't have to return call the agent and the solicitors and then what happened where we were mortgage and all. So you get any such things in mind when you deal in this kind of product.

So on your suggestion on the presentation, we take that suggestion, and we will come out with the investor presentation in due course. I think both your questions are extremely evolved in terms of the problem statement that you are addressing, and these are the things that are keeping us awake as well on how to kind of solve this problem. What is happening in India currently, as you rightly said, it's clearly B2B2C. So for example, if I'm a proptech company, I'm going to a developer and I'm kind of underwriting or mandating or working that inventory and it is -- and then I'm building a consumer into it. So it's a B2B2C whereas the model globally has been or has moved to a C2C, right, which is completely secondary. So you as a property owner should be able to sell your property on a listing platform. And we -- I, as a property buyer should be able to buy it or vice versa. I think that's where you are taking this, too. Is that correct?

Yes, that's right. Yes.

In that case, what happens in India is that the title records are not yet fully digitized. Some states have already started doing that, and we really welcome that move. Once you have the titles sort of available online, then this process will become end-to-end digitally. We anticipate and we visualize that. However, a lot of other pieces within this, which is how our loan should be originated, how should our registration be done, all these are getting automated on a daily basis. I mean that market share of automation is going up and up on a regular basis. So the entire ecosystem that we talk about is exactly this, where you are saying that, look, how can we bring a second -- bring the customer or bring a property seller who is an individual to a property buyer who is an individual, right, I mean, how do we kind of make that mix and match. There are some things that have been done on this already, which I assume Onkar would like to talk about.

Sure. So effectively, what we've been able to do is a map all the key pieces on B2B and B2C side in terms of products and services. You rightly mentioned that it is a challenge to provide an end-to-end experience, both for the developer or the property owner and also the consumer of real estate. There are key themes that we have built in now and which will act as a key cog across all the products that we are building in this ecosystem. So right from a CRM to a transaction platform, to probably an escrow, to a furnished home furniture and rental platform. The key cog in all these individual products and services is a centralized fulfillment center, which will help conclude and connect these transactions across various personas of real estate and various products that are available in our ecosystem. So for example, if we have a transaction happening on BeyondWalls platform where the purchaser has bought the real estate apartment through a broker, the next step in this would be a loan origination product, which is activated by the fulfillment center, wherein the fund-based requirement of the owner of the purchaser is satisfied. Further on, you have furniture and interior design products that can be facilitated at regard again with the fulfillment center that will go on to facilitate the furniture and interior design requirements of the purchaser. So this is how we are tying up all the products and services and delivering an end-to-end experience for the consumer of real estate. B2C ultimately the goal of the entire ecosystem, where the idea is that how are we able to enhance consumers' experience of purchasing and owning the real estate piece. I hope we've been able to answer your question.

Yes. That's really helpful. Just want to add here, there is a huge gap in the market, especially in India, where I want to sell a property, I just take my phone and take a few pictures and just go the is asking to the pictures. But if I can present the same ad in a better way there, I hire a professional, they come and take pictures in a professional way. and then they just take all the measurements of all the rooms, everything the layout and [indiscernible], they actually come up with a floor plan. And then they can help me to have a [indiscernible] of my house and the society and the apartment block, and then all these things actually posted on to the website. So it gives a very good experience for me as a seller and even for a buyer, he gets that initial impression. So before visiting the property, so he just decides to go on to view the property or not. I think this is something I think the less potential, I believe, thanks for that.

Absolutely. We agree with you fully.

Next question is from the line of [indiscernible].

Yes. Sir, my question is that how many more companies will be acquired before our ecosystem is fully complete? And what will be the utilization of the rights proceedings that which will come in, say, 1.5, 2 months from now? And are the promoters committed to subscribe to any unsubscribed portion of the rights also? And third question is, sir, are we looking at developing any capabilities on our own also?

So far, I think how many companies is your one question. The use of proceeds of rights is the second. I can answer the third one because we have already given an undertaking that as promoters, Aurum will subscribe to all the unsubscribed portion. So we are fully committed to that. So that's something that I can confirm to you straight away. And the fourth question was on our in-house capability. Is that right, sir?

Yes.

So let me say how many companies that's something that's difficult to put a number on currently. But I can definitely tell you that within our 4 segments, 4 clusters that we are developing products and services, we are looking to develop anything between 22 to 23 products and services, out of which I would say that we already have now 6 or 7, and there will be another 15, 16 that is going to be developed over the next year or 2. Now some of these could be that we buy some of these companies because they have fabulous products. We partner with some of these companies because they have fabulous products or build them in-house. So it could be a build versus buy versus partner strategy, and we are always continuously evaluating that. So putting a number to the company is going to be very difficult. But yes, we definitely know what products we need to build. And as far as the in-house capability is concerned, our -- what is our team number currently Already, we are at 40 people in development from we would be probably 20 or 25 in the last quarter. So there have been a few products like a blockchain-based product that has been developed fully in-house, not even with some outsourced professionals. So we are looking at bringing the team in-house for the innovation of products, which have not been -- which are not being done usually by any companies. We think that some of the investee companies will not be spending on the innovation products and things like blockchain, things like AR and VR. Mr. Sri in a previous question, talked about that. So some of these things we are trying to develop in-house. So we are having our old capabilities currently to develop the products.

So sir, since you're from -- you're an alumni of Harvard and -- have you been -- have you done it try to do the reverse method by hiring somebody coming like a Zillow or some -- who has like a big stake in the company or has a 25%, 26% stake really that can jump start the entire process because 3-day asset, there is no competitor or nobody is trying to track the space 360 degrees just like we are trying to do it.

Sorry, for some reason, your line is not as clear as the others.

Yes, I shall repeat my question. Since you're a Harvard alumni and with a good ecosystem in the U.S. also, have you ever considered or have you been ever approached by from the like Zillow who could take like 25%, 26% stake at one go, but give you almost all the capabilities at one go and really jump start this entire process?

Look, we now definitely have put proptech from India on a global map where most of the companies globally are in touch with us in some form of fashion, some for development, some for partnering. But we haven't really initiated any equity discussion with anybody currently simply because we think that there is a long way to go for us to really build the right prices internally before we discuss 25 or 26 or any strategic investment from anyone. As of now, I mean, we think that it's important that we stay focused in developing what we are developing and ensure that we keep our revenue targets, and we keep our value targets on course.

Our next question is from the line of [indiscernible], an independent investor.

My only question is on the rights issue. Like do we have some sort of a time line in place that we are looking for given that it has already been approved by the shareholders on the Board? So we have a time line to close the rights to, I mean, get the rights issue done within next few weeks. I think definitely in this quarter, we would have that process completed. I know that the process is -- the merchant bankers are appointed. And if somebody from bank is on the call probably can answer that better than we can. But yes, the idea is to kind of be done with the rights issue, permissions and process within this quarter.

Next question is a follow-up from the line of [indiscernible].

So I just wanted to ask you, I mean, do we have some CapEx plans in the future? I mean, what is the amount, if you can share with us? And what is the time line you were planning to spend this CapEx? And once we are done with the CapEx in the companies what is the payback period for these companies, if you can highlight, sir?

It will be difficult to give you some sort of defined numbers at this stage. But if you just see from a point of view of how we are approaching capital and how we are ensuring our behavior with capital, I think that's really important and critical. So for example, working -- investing very conservatively, one with the investee companies that you have seen currently, also kind of scaling up in a manner which is more organic in-house to build products and services. We all know the talent market currently is very hot, so we don't want to be in some sort of real competition with the rest of the tech world to kind of say that, look, why everybody should join us. So we are in a conservative buildup phase hereon. And we are sitting on reasonable amount of capital, right, committed and in present, right? So we could have actually over the last 6, 7, 8 months taken more aggressive steps. I think we have taken bolder steps, but we have taken conservative ones, and I hope we'll continue to do the same.

Okay, sir. And can you tell me something on this payback period . I think last time I asked you that into, I would like to repeat you on the acquisitions on the payback period.

Payback period in acquisitions. So these are really -- I mean, I think they are value accretive from the very beginning. So -- when you say payback period in terms of these companies will be profitable, that's what we are trying to push them to. But yes, in terms of value, they are value accretive from the very beginning. That's what we believe.

We have our next question from the line of [indiscernible], a shareholder.

My question is here from this to Mr. Ashish Deora. What is the probability you are anticipating to generate the revenue and what is the synergy of previous companies have acquired?

Can you please repeat the question? What is the revenue? Is that the question?

What are the you are anticipating to generate the revenue for the company, first question? Second question is -- what is the synergy major companies have acquired on are we just acquired

so look, we wanted to kind of address this, I'm glad you brought this up, but we thought that it's still too early in the game. But this is actually the first quarter under Aurum management where the company has gone into revenue. Both at the consolidated level and at stand-alone level, we have revenue now and I will request Kunal, our CFO, to talk about the revenue as well after this. As far as synergies are concerned, I think Onkar spelled out the synergies in the first half of the call. But essentially, what we are doing really is that the software and the service providers, we are trying to bring them together, right? And that's where the proptech ecosystem kind of comes together. So for example, TheHouseMonk is a SaaS product rental management software. And now co-living company, Grexter, already uses that and will continue to scale up using the capabilities of TheHouseMonk. And similarly, between K2V2 and Integrow there are tremendous synergies -- so we always -- now with every single company that we are looking at, we are seeing that how do we create a synergy with the existing companies or existing products or existing services that we have in-house. So that's on the synergy. As far as the revenue is concerned, I think it's -- for us, it's a very important quarter simply because we -- this is the first quarter where we have revenue from business under Aurum management. And I'll request Kunal to please talk about a little bit.

On a stand-alone basis, we have actually reported a revenue in this quarter that is revalued directly from our corporations of INR 66 lakhs. And on a consolidated basis on 753 lakhs, conservative are, as Onkar has already stated earlier, it is a stand-alone plus K2V2 right now, we have only 2 entities to consolidate. So -- but the entire revenue base on IT and IT services has been discussed in the segment reporting.

There are no further questions. I now hand the conference over to the management for closing comments. Over to you.

So thank you, everybody, very much for joining the call and giving your hour to us. We believe that what we are doing here is something very exciting and very unique. And we believe that when we speak to you next quarter, we will have something more concrete steps for fulfilling our integrated proptech ecosystem. I thank you all once again.

Thank you very much, members of management. Ladies and gentlemen, on behalf of DAM Capital Advisors Limited, that concludes today's conference call. Thank you all for joining us, and you may now disconnect your lines.