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 |