Realty developer Aurum Ventures-controlled listed information technology company Aurum PropTech will be investing over $5 million through a mix of debt and equity capital infusion in a rental management platform TheHouseMonk owned by Monk Tech Labs.
The Bangalore-based firm, a B2B SaaS company focussed on the rental real estate industry.
TheHouseMonk plans to deploy these funds to fuel its expansion into Europe and US, as well as consolidate its position in Asia, which currently serves as its core market.
It also plans to hire aggressively into its tech team to build advanced artificial intelligence and machine learning (AI/ML) capabilities, and to strengthen its overall product portfolio. Of the $5 million, around $2 million will come in as equity and rest as debt.
"Over the past few months, we have been on an inorganic growth spree and TheHouseMonk is another addition to our list of products and services enabling the creation of the entire PropTech value chain. We find TheHouseMonk as a great fit for enhancing efficiency in the residential rental business," said Ashish Deora, Founder and Chief Executive Officer of Aurum Ventures.
According to Deora, TheHouseMonk provides a compelling proposition for property owners and managers to monetize, maintain and manage their rental portfolio through its technology platform.
Fuelled by the Millennial and Gen Z behavioral pattern and growth of IT-ITES, industry rental housing is booming especially in India. It has created a huge market for organized and new-age Coliving and student housing players who are looking to scale up.
"We are very excited to partner with Aurum PropTech as we continue building the de-facto platform for the rental real estate industry. Adoption of technology has increased significantly due to the pandemic as landlords, property managers and tenants are looking for digital solutions to manage their relationship and our platform is perfectly positioned to serve this growing need in the market," said Ajay Kumar, Co-Founder and CEO of TheHouseMonk.
Real estate private equity companies are making large investments in buying single family rental properties, while Coliving and student housing operators have raised significant capital from venture capital firms recently. TheHouseMonk's software solutions provide a platform for these players among others to organize and scale up their businesses.
In July 2021, Aurum PropTech had approved the acquisition of 51% stake in Pune-based software technology firm K2V2 followed by 49% stake in Mumbai based asset management company Integrow Asset Management Pvt. Ltd in October 2021.