Real estate brokerage firm IndiaHomes will be investing USD 20 million through private equity infusion over next two years to fund its foray in home loan servicing as well as to expand geographical reach, a top company executive has said.
"We are planning to invest around $20 million over the next two years which would be largely used for home loan servicing for our customers as well as to increase our presence in the existing areas as for entering new markets like Ahmedabad, Chennai, Pune and Hyderabad," IndiaHomes Managing Director Samarjit Singh told PTI yesterday.
The company, formerly known as Agni Property, offers a complete turnkey of services for its customers, which include short-listing of properties, comparisons of multiple properties, site visits, market analysis and customer transactions.
IndiaHomes has so far invested around USD 14 million for expanding its operations in the country. These funds were raised through a mix of private equity infusion from Helion Venture Capital India and US-based Foundation Capital and through its promoters.
"USD 20 million will be raised through private equity infusion. We are likely to close a deal in this regard soon. This will also be with an international firm," Singh said, without disclosing the name of the firm.
The company will be establishing a separate entity 'India Loans' to take care of the loan servicing business, he said.
"Today it became very difficult for buyers to get home loans as they have to undergo a number of procedures. In our endeavour to provide end-to-end solutions, we now want to be a one stop shop where customers can not only get their dream home but also guaranteed loan and all the necessary advices," the MD said.
The company is in talks with a number of home loan lenders, Singh said, adding "we are in the final stages of negotiations with three banks including HDFC, ICICI and State Bank of India".
The revenue model for the new business will be through fee, which the company will be charging to the banks and offering free-of-cost services to the customers, he said.
IndiaHomes is expecting a 300-400 per cent growth in its revenues, which is primarily fee-based, collected from developers in FY13.
"We expect a net transaction fee of Rs 25 crore this financial year and Rs 100 crore in FY14. We are looking at transactions worth Rs 1,000 crore in FY13 and Rs 3,500 crore in FY14," added Singh.