CHAMUNDA REAL

ESTATE PVT LTD. LIVE

PROJECT
TEAM NAME- 50% HASI
-

PALLAV KUMAR (IIM INDORE)

PREETI RAHEJA (IIM INDORE)

The Business Model

Key Partners

Key Activities

Magicb
ricksMagicbricksowned
Times
by Times
owned by
Group
Group

Magicb
does
ricks- does
Magicbricksdeals,
bulk
bulk deals,
suppli
of
lots of
es lots
supplies
leads,
strong
leads, strong
presen
online
ce,
online presence,
good
UI
good UI

99
belongss
acres-- belong
99 acres
ge
InfoEd
to
group,
to InfoEdge group,
focus
on
lot on
focus aa lot
igning
campa
campaigning

99
gives
acres-- gives
99 acres
deals,
bulk
bulk deals,
genera
of
lots of
tes lots
generates
leads
leads

Housin
gHousinggenera
capitall
tes capita
generates
through
fundingg
through fundin
from
al
external
from extern
source
sourcess
(TataG
roup,
(TataGroup,
Softba
nk)
Softbank)
Comm
onfloor-Commonfloor
indepe
ndent,,
independent
genera
capital
ted capital
generated
from
like
firms like
from firms
Global
Tiger
Tiger Global,,
Googl
Googlee

Housin
gives
g- gives
Housinggood
but
lesser
good
but
lesser
quality
sells
deals, sells
quality deals,
ew
flightvi
via
via flightview

Comm
gives
onfloor-- gives
Commonfloor
listed
deals,
bulk
bulk deals, listed
over
over
cities, over
200 cities,
over 200
service
55 lakh
s,
lakh services,
to
flat.to
ed
acquir
to
flat.to
ed
acquir
get
PG
into PG
get into
odation
accom
accomodation

Magicbricks, 99acres, Commonfloor, Housing,

Customer Value
Proposition

Customer Relationship

uals
Magicb
individuals
ricks-individ
Magicbricksrty,
seekin
property,
seekingg prope
als
individu
owing
als
individu owing
proper
rty
property
ty, prope
property,
bricks
magic
s,
builder
builders, magicbricks
mobile
SMS
magic SMS
mobile ,, magic
Housin
Strong
g- Strong
HousingUI,
data
maps, data
3D maps,
UI, 3D
lab
science
science lab
Comm
onfloor-Commonfloor
builds
builds
commu
in
nities in
communities
ents,
apartm
gated
ents,
gated apartm
commo
nfloor
commonfloor
portal)
group(
group(portal)

Revenue Streams

Magicb
ricksMagicbricksising
Advert
sales,
Advertising sales,
service
to
servicess to
s,selli
builder
ng
builders,selling
leads
rs,
brokers,
to broke
leads to
proper
ty
individu
al property
individual
loan
and
s
owner
loan
and
owners
provide
rs
providers

sales
Magicb
good sales
ricks- good
Magicbricksck
feedba
team,
y
ck
enquir
feedba
team,
y
enquir
suppor
supportt
99
UI,
poor UI,
acres-- poor
99 acres
service
er
not
custom
customer service not
on
more
focus
on
great,
more
focus
great,
throug
advert
and throughh
ising and
advertising
ads
ures
exposures
ads expos

Customer Segments

Magicb
low,
ricks- low,
Magicbrickshigh
and
medium
high
and
medium
target
has
s, has
groups,
target group
in
ce
presen
tier
strong
strong presence in tier
22 and
cities
and 33 cities
targetss
99acre
mostly target
s- mostly
99acresall
also
nts, also
segments,
all segme
as
well
as
2
tier
as
well
covers
covers tier 2 as
tier
cities
tier 33 cities

in
Housin
CRM in
best CRM
g- best
Housinggood
selecte
cities, good
tier 33 cities,
selectedd tier
Housin
rget
TG(target
ck
g- TG(ta
HousingUI,
feedback
strong feedba
UI, strong
tier
group)
mostly tier 33
group)mostly
CRM
suppor
rs CRM
registers
support,t, registe
seek
who seek
buyerss who
cities, buyer
keting cities,
mobile
er(marketing
number(mar
mobile numb
best
quality
at best
rooms at
quality rooms
team
keep aa
now keep
can now
team can
price
price
leads
of leads
track
numberr of
on numbe
track on
got)
has
builder
builder has got)
m
Comm
medium
onfloor-- mediu
Commonfloor
group
e
incom
high
to
group
e
UI,
to high incom
Comm
best UI,
onfloor-- best
Commonfloor
as
l
TG
specia
as TG
roms,
l
of
view
specia
360
360 view of roms,
access
onfloor
commonfloor
to comm
access to
Comm
onfloor-Commonfloor
portal
group
group portal
Advert
sales,
ising sales,
Advertising
Housin
up
g-tie up
Housing-tie
service
to
servicess to
99
with
ing
acres-furnishing
99 acres
with furnish
s,selli
builder
ng
builders,selling
subscr
studios
or
iption
,interior
subscription
studios,interi
leads
rs,
brokers,
to broke
leads to
fee,pro
design
perty
ers,
fee,property
designers,
proper
al
ty
individu
individual property
Ads,lis
listings
rs,
to
ting to
,builders,
Ads,listing
listings,builde
loan
and
s
owner
loan
and
s
owner
broker
premiu
m
s
brokers
premium
provide
make
rs, make
providers,
brandi
builder
s/
ng,
branding,
builders/
from
money
money from
broker
visibili
s,
throughh
ty throug
brokers,
visibility
builder
builderss
micro
chargi
as
sites
ng as
micro sites
charging

The business model

Key Partners

$1
initial
in initial
million in
$1 million
financi
ng
financing
Madro
from
na
from Madrona
Ventur
Group
Venturee Group
$8
in
million in
$8 million
gg
fundin
B
Series
fundin
Series B
from
Inc.,
Vulcann Inc.,
from Vulca
ment
invest
the
the investment
arm
oft
Microsoft
of Micros
arm of
Paul
co-foun
der Paul
co-founder
Allen
Allen
funding
$12
for $12
funding for
million
million
from
and
ck and
Greylock
from Greylo
Fisher
Drape
Draperr Fisher
Jurvet
son ii
Jurvetson

Key Activities

Key Activities

3D-str
ucturingg
3D-structurin
display
ty
property
of proper
display of

Value Proposition

Last
servicee
call- aa servic
Last callthat
tes
generates
that genera
offers
e
multipl
for
multiple offers for
home
who
sellerss who
home seller
Redfin
list
with Redfin
list with

The
ny's
company's
The compa
ed
review
are
ed
agents
review
are
agents
after
every
after every
transac
tion,
transaction,
succes
failed,
or failed,
sful or
successful
s
review
with
posted Customer Segment
all reviews posted
with all
the
on
under the
site under
the site
on the
agent
profiless
online profile
agentss online
Low,
and
mid and
Low, mid
high-en
high-endd
On-dem
home
and home
On-demand
touring
book
with book
touring with
itit now
now

Cost Structure

6%sal
es
6%sales
sion
commi
split
is split
commision is
agent
listing
into:
agent
listing
into:
3%
3%
Buying
3%
agent 3%
Buying agent

Redfin

From
s
buyers
From buyer
agent
agent
commi
ssioncommissionRedfin
keeps aa
Redfin keeps
portion
fee
as aa fee
portion as

A
of
blend of
A blend
logy
techno
and
technology and
service
also
service also
to
enable
Redfin to
enabless Redfin
1.5
a
charge
1.5
a
charge
percen
fee
listing fee
percentt listing
seller
home
for
s,
for home sellers,
than
less
is
which
than
less
is
which
the
onal 33
traditional
the traditi
percen
fee
percentt fee

Redfin
agents
Redfin agents
are
based
paid based
are paid
action
on
satisfaction,,
on satisf
not
ission
commission
not comm
so
ers
customers
so custom
always
t
interes
interest always
come
first
come first
er
Smart
and
Smarter and
move
faster:
move
faster:
quickly
and
quickly and
with
faster
easy
faster with easy
online
and
tools and
online tools
ete
compl
most
most complete
and
te
accurate
and accura
home
sales
home sales
availa
data
ble
data available

Revenue Streams

Makes
moneyy
Makes mone
or
when
buy or
users buy
when users
its
sell
with its
homess with
sell home
agent
real
estate agentss
real estate

Customer Relationship

Rebat
m,
program,
Rebatee progra
which
returnss aa
which return
portion
the
of the
portion of
comm
firms
ission
firms commission
back
on
buyers on
to buyers
back to
that
ties
proper
properties that
meet
s
Redfins
meet Redfin
price
minimu
m price
minimum
other
a.
and
criteria.
and other criteri
Custom
will
ers will
Customers
work
with aa
work with
team
real
of real
team of
estate
so
pros, so
estate pros,
always
there
is always
there is
someo
ready
ne ready
someone
to
help
to help
Redfin
are
agentss are
Redfin agent
yees
emplo
d
salarie
yees
emplo
d
salarie
who
receivee
also receiv
who also
fringe
and
its and
benefits
fringe benef
part
in part
bonuse
based in
bonusess based
ction
satisfa
on
client satisfaction
on client

RECOMMENDATIONS
Redfin agents are paid based on satisfaction, not commission
,so customers interest always come first:

Indian customers always negotiate, they are never satisfied, so

agents will never agree on customers satisfaction

Redfin charges 1.5 percent listing fee for home sellers:

In India these charges depend on citys economy( supply-demand
ratio, eg: supply in Bengaluru is more than demand, while in Pune
supply is comparatively equivalent to demand)
other factor is property rate
It will be difficult for sellers/buyers to adjust to this sort of fixed
arrangement

The flipside to the above being if there is Smarter and faster

technology: move quickly and faster with easy online tools
and most complete and accurate home sales data available
If this sort of technology is brought in India, will be a competitive
advantage over other sites in India