Dear Shareholders,
I'm delighted to connect as we navigate our vibrant sector and our organization's
remarkable journey so far. At Aurum, we have consistently focused on three 1
key principles that drive our success: optimizing unit economics, establishing a clear
path to profitability, and creating enduring value for all stakeholders. These
foundational elements have been at the core of . our strategy and communications over the
past three years. I'm pleased to report that we are seeing the positive results of this
disciplined approach across our entire ecosystem.
Thank you for your continued support as we move forward in this dynamic landscape. Your
trust in our vision and strategy is invaluable as we work to build a stronger, more
resilient Aurum.
Group CEO's Communique
"The bold vision of our country's leadership in the private and public sector,
coupled with the hunger for digital acceleration, is setting us up to grow 10 times over
the next 25 years. We are now targeting to be a USD 35 trillion economy by 2047."
Global Economic Landscape
The global economy has navigated turbulent waters amid conflicts in Europe and the
Middle East and supply chain disruptions like the Red Sea Crisis. The IMF projected global
economic growth at 3.2% in 2024 and 3.3% in 2025, reflecting a complex backdrop of
geopolitical tensions and economic uncertainties. Global inflation is projected to decline
steadily, with advanced economies likely reaching their targets before emerging markets
and developing economies. These challenges underscore the need for businesses to adapt to
a rapidly changing economic landscape, balancing risk management with strategic growth
initiatives. India has been rising in the global order year on year bringing pride to
every Indian.
The Great Indian Economic Juggernaut
Amid a turbulent global economic landscape, India emerges as the brightest spot across
geographies, maintaining its position as the fastest-growing major economy. The National
Statistical Office estimates India's Real GDP growth at 8.2% in 2023-24, up from 7.0% in
2022-23, reflecting the country's economic stability and resilience. This robust growth
presents significant opportunities for businesses operating in or expanding into the
Indian market. India's economy continues to showcase remarkable resilience, with sustained
growth supported by a range of positive indicators. The government's commitment to fiscal
consolidation, combined with the central bank's prudent monetary policy, j has laid a
solid foundation for ongoing economic expansion. Furthermore, the improving health of the
banking sector and financial institutions, coupled with targeted government incentives, is
expected to ignite a new cycle of capital expenditure.
The Central government in India that took charge in mid of this year has boldened the
ambitions of every household, every business and generally of every Indian. Honorable
Prime Minister, Narendra Modi is set to build the vision for next 25 years on the base of
his excellent work of last 10 years. We will see India transform into a developed economy
by 2047, marking the country's 100th year of independence. This vision, known
as Amrit Kaal, focuses on several key areas in social sector supported by financial
reforms. The balance of Bharat and India, rural and urban, heritage and modern, values and
innovation is defining the new India.
In line with India's ambitious economic goals, The Hon'ble Finance Minister announced
the first budget of Amrit Kaal as the way forward for an empowered and inclusive economy.
The Union Budget 2024-25 introduced a significant change to the LongTerm Capital Gains
(LTCG) tax structure, with implications for real estate and other long-term capital
assets. This change is expected to influence investment decisions and potentially reshape
capital allocation strategies across various sectors, including real estate. Further,
simplification of direct and indirect tax regime will allow capital allocators to create
supply at an exponential scale.
Real Estate Growth Potential
India's real estate sector, currently valued at USD 482 billion (7.3% of economic
output), is projected to reach USD 1.5 trillion by 2034 (10.5% of output). This growth is
driven by rising residential demand, modern office spaces, and developments in the
hospitality and retail sectors. The industry is also adapting to e-commerce needs with
increased warehousing facilities and data centers. Government policies have significantly
supported this expansion through initiatives like affordable housing schemes, smart city
projects, and tax benefits on housing loans, creating a favorable investment environment.
These trends and supportive policies highlight the sector's diversification and underscore
its growing importance in India's evolving economic landscape, and we are emerging as the
largest Residential Rental Market in India.
In a notable development, the Securities and Exchange Board of India (SEBI) has amended
regulations for Small and Medium Real Estate Investment Trusts (SM REITs), allowing retail
investors to access high-value real estate assets with a minimum investment of ^ 10 Lakhs.
We are confident that this change will democratize access to premium properties, enabling
a broader range of investors to own shares in high-quality real estate.
The emergence of SM REITs is poised to impact the real estate industry significantly.
They provide developers with an efficient exit strategy and facilitate the reinvestment of
capital into new projects, thereby supporting sustained growth in the sector. Fractional
Ownership Platforms (FoPs) highlight that the increased liquidity and flexibility offered
by SM REITs enhance real estate's appeal as an investment class, potentially yielding
returns ranging from 9% to 17%, depending on the asset type.
This evolving landscape underscores the robust growth potential of India's real estate
sector and its increasing significance in the broader economic framework. We aim to
provide investors with opportunities to participate in sizable, rent-yielding real estate
investments.
Digital Transformation
The Indian Real Estate sector has undergone a technological revolution, enhancing
transparency, efficiency, and accessibility. This digital transformation, driven by the
need to overcome inefficient processes, adapt to changing consumer expectations, respond
to globalization and rapid urbanization, and align with government initiatives like
Digital India, has led to the rise of innovative solutions.
Online property portals now serve as virtual marketplaces, offering high- resolution
images and detailed information. Artificial intelligence and machine learning enable
virtual tours and 3D imaging, broadening the reach of property listings globally.
The integration of smart home technologies through loT is gaining popularity, while
blockchain is ensuring secure transactions via smart contracts. E-registration services
and e-governance initiatives are digitizing land records and expediting processes. With
these developments, the lndian real estate market is poised for a more accessible,
transparent, and resilient future.
Deepening PropTech
The real estate sector isexperiencing significant growth, with PropTech (Property
Technology) leading this evolution. PropTech uses technology to innovate across various
aspects of real estate, including propertymanagement, construction, financing, and
transactions in both residential and commercial markets. It's gaining importance by
offering solutions to longstanding industry challenges, enhancing efficiency,
transparency, and user experience.
Aurum's journey began with the insight that technology can revolutionize the entire
real estate value chain. Our business portfolio now covers approximately 75% of India's
PropTech market potential, positioning us as a sector leader. Our strategy rests on
Technology, Services, and Capital.
Our innovations span property search, management, construction, transactions, and
valuation. We've developed advanced algorithms, AI-powered platforms, and tools to enhance
efficiency across these areas. However, our vision extends beyond technology. We
understand that transformation also requires personalization, so our services are
intricately woven into our offerings.
By combining cutting-edge technology with the personalized services and strategic
capital deployment, Aurum is not just participating in the PropTech revolution - we are
leading it, reshaping real estate for a more efficient, transparent, and user- friendly
future.
Rental, Distribution and Capital
Our vision at Aurum PropTech is to revolutionize the real estate landscape in India
through innovative technology solutions. We have strategically positioned ourselves to
lead the PropTech sector by focusing on three key verticals: Rental, Distribution, and
Capital.
Rental^
In our Rental vertical, we have successfully achieved our goal of becoming India's
largest rental management platform. This position gives us access to invaluable
customer data and analytics, enabling us to continually refine our services. Building
on this success, our aim is to double our capacities from our current base to cross 50,000
rental units in the near future. In 2023-24, our co-living business registered an
impressive 87% year-on-year growth compared to 2022-23. A key milestone was the
acquisition and turnaround of NestAway, India's largest rental marketplace. We transformed
NestAway into a leaner, more efficient organization by streamlining operations, optimizing
costs, and enhancing the customer experience through a new, user- friendly platform. This
successful turnaround demonstrates our ability to identify potential, execute strategic
acquisitions, and drive operational excellence in the rental management sector.
Distribution^
Our Distribution vertical has seen robust growth, with top developers across India
joining our platform. Our solutions, including analytics, CRM, and broker aggregation,
have shown remarkable results. The analytics business displayed a 247% year- on-year
revenue growth in 202324 compared to 2022-23, while our broker aggregation business saw a
90% year-on-year growth in units booked. Notably, our CRM product, sell.do, was recognized
as the easiest to use CRM globally by G2. This vertical's focus on providing
comprehensive, data-driven
solutions has positioned us as a preferred partner for developers and brokers alike.
Capital^
In the Capital vertical, we have made significant strides toward becoming a pioneer in
MSME REITs in India. We acquired and fractionalized a single asset worth ^ 70 Crore in
Pune, setting the stage for our SM REIT application. This move aligns with SEBI's
path-breaking regulation and positions us to become one of the largest SM REITs in India.
This initiative will democratize real estate investments, allowing smaller investors to
participate in institutional-grade properties. Together with our AIF, Integrow Asset
Management, we are poised for exponential growth. Our tech- enabled capital solutions are
well positioned to unlock value in this sector, creating scalable solutions for property
owners and investors.
Way Forward
Looking ahead, we will focus on strategic growth across our Rental, Distribution, and
Capital verticals. We aim to expand our rental capacity significantly, enhance our
distribution solutions with more scalable models, and capitalize on emerging opportunities
in the MSME REIT space. Our strategy involves continuous innovation and product
development, with substantial investment planned to stay at the forefront of PropTech
solutions. We're committed to exploring new market segments, such as senior living, while
maintaining our focus on profitability and operational efficiency. By leveraging our
integrated ecosystem approach, keeping an keen eye on profitability and unit economics, we
aim to strengthen our position as a leader in India's PropTech sector, driving value for
all stakeholders in the real estate market.
Governance, Risk, and Compliance
Effective governance is essential for the sustained success of any thriving business,
providing the solid foundation upon which all aspects of a company rest. We have
implemented a Governance, Risk, and Compliance (GRC) framework that adheres to best
practices across five critical areas: Intellectual Capital, Human Capital, Social and
Brand Capital, Ecosystem Capital, and Financial Capital.
Our commitment is to rigorously pursue excellence in each of these areas in the coming
years. We are dedicated to embodying our core values of transparency, empowerment,
agility, focus, diligence, passion, and mutual care, ensuring that are reflected
throughout our governance practices.
Aurum
The Aurum Benevolence Tidings of 2024 highlights a pivotal year for Aurum Neev, the
philanthropic arm of Aurum. Guided by our IKIGAI, Aurum is committed to six core pillars:
tree plantation, green design, nutritious meals, safe working hours, girls' education, and
medical interventions.
Our notable achievements this year through our 2nd Aurum Neev Seva Fortnight
Service include planting 20,100 trees through the Global Vikas Trust and Q Parc campus. In
collaboration with organizations such as ‘Roti Bank' and Girija Welfare
Association, we have provided over 21,760 nutritious meals. Our commitment to safety is
evident in our impressive record of 950 workers.
Aligned with the ‘Beti Bachao Beti Padhao' initiative, Aurum is dedicated
to empowering and educating girls. We have already supported over 300 girl education years
and 860 Educational Kits.
Aurum has assisted 10,501 people through RSS organizations, Mata Baal Arogya Ahaar
Prakalp and Gram Arogya Rakshak Prakalp.
Closing Note
As I conclude, I want to reflect on the transformative journey we have embarked upon
together. Our achievements this year are small steps toward a more innovative and
efficient real estate ecosystem in India. To our shareholders, your trust has been the
foundation of our ambitions. To our other stakeholders, your insights have shaped our
strategies. And to our team, your relentless dedication has turned our vision into
reality.
The road ahead is filled with possibilities, with Aurum poised to lead the PropTech
revolution.
Our commitment to excellence, innovation, and sustainability will drive us forward. As
we embrace new technologies and adapt to market needs, our focus remains on creating
impactful solutions that enhance how people interact with real estate. Thank you for being
part of this journey. Together, we're shaping the future of real estate in India. Your
continued faith in Aurum PropTech fuels our passion and determination. Here's to the next
chapter of our shared success.
| Ashish Deora, |
| Founder & Group CEO |