By: Ravi Sinha
Track2Realty Exclusive: Some property analysts have been critical about such group-buying websites, stating that they have an unsustainable business model. “Considering the nature of the Indian realty sector, which had tainted its image in numerous corruption scandals—and the rising interest rate regime, which has kept consumers away from buying such properties, such sites are expected to generate very little offtake from a consumer. Again, a prospective costumer may get some deals and discounts through one-on-one direct physical negotiations as well,” says Kamal Kapoor, a property advisor.
The moot point here is how big is the business of group buying? Facts speak for themselves.GrOffr, the Mumbai-based group buying site has raised $1 million in July 2011 funding from Indian Angel Network (IAN), a group of early-stage seed investors.
The site was founded in 2010 by Sandeep Reddy and Vikhyat Srivastava to help consumers find deals in the real estate market but GrOffr also offers deals on cars and other big ticket items.
Sandeep Reddy says that the site has established a growing community of buyers. “They have a choice to subscribe to bulk deals negotiated by GrOffr or form a group for purchasing an asset of their choice by inviting others looking for similar assets.”
Groffr, in just 13 months of existence, claims to have already sold real estate inventory of more than Rs 150 crore. And the model is clearly working for it. Today the site has around 60,000 registered users and presence in nine cities pan India. They claim to get requests from other parts of the world such as Brazil, Turkey, China, Canada and US to start operations.
…..to be continued
