The Co-Living Trend Will Continue Its Ascent; However, Traditional Local Operators Are Expected To Persist: Sunny Garg, Co-Founder, CRIB Property Solution

The real estate sector in India is undergoing a significant transformation by incorporating technology to elevate the overall customer experience. Over the past few years, several PropTech startups have emerged, introducing innovative products and services aimed at revolutionizing the traditional operations of the real estate industry. To gain insights into this evolving landscape, we had a conversation with Sunny Garg, co-founder of CRIB Property Solution, a company at the forefront of disrupting the co-living, hostels, and PG (Paying Guest) market through its cutting-edge app and services.

What inspired you to establish CRIB Property Solution, and what niche did you aim to fill in the real estate sector?

Before establishing Crib, our journey in the co-living and student housing realm commenced with YourShell in 2017, during our graduation at Delhi University. Remarkably, within a span of less than two years, we successfully scaled YourShell to include 20 properties and accommodate 600 beds. While managing YourShell, a glaring observation surfaced – the industry lagged in technological integration, lacking dedicated property management software in India. Most communications and transactions were conducted through calls, WhatsApp or emails highlighting a significant opportunity for digitization.

Motivated by this insight, we made a strategic decision. We sold YourShell to Stanza Living and subsequently launched Crib, a revolutionary property management software. The journey has been a blend of challenges and rewards. Introducing a property management app to local businesses unfamiliar with technology posed hurdles. Yet, the satisfaction lies in witnessing how these businesses seamlessly embrace the app once they comprehend its potential. Crib, therefore, stands not only as a testament to our entrepreneurial journey but also as a transformative solution bridging the technological gap in the co-living and housing sector

Can you share some key milestones or achievements that CRIB Property Solution has accomplished since its inception?

Over the past 15 months since our inception, we have successfully onboarded over 1,000 clients. This diverse clientele comprises entities in student housing, co-living spaces, paying guest accommodations, and managed service apartments. Collectively, these clients are overseeing annual rentals amounting to Rs 2,000 crores, with an aggregate capacity exceeding 1.5 lakh beds. Our software and apps have played a pivotal role in streamlining and managing these extensive portfolios, spanning major cities like Bengaluru, Hyderabad, Pune and so on.

What are your views on co-living industry do you think it will grow and eliminate local PGs and hostel operators?

The co-living sector is poised for substantial growth, particularly fueled by the rising demand for quality residences, predominantly from working professionals who are willing to pay higher rentals for an elevated standard of living. While the prospects for co-living in the professional workforce segment seem promising, the landscape shifts when considering student co-living accommodations. In this domain, the market proves to be highly price-sensitive, facing formidable competition from local paying guest accommodations, private hostels, and similar options.

It is anticipated that the co-living trend will continue its ascent; however, traditional local operators are expected to persist. This coexistence is attributed to the significantly lower capital and operational costs incurred by these traditional players in comparison to their organized co-living counterparts. As a result, the market is likely to see a coalescence of both models, catering to distinct consumer segments with varying preferences and budget considerations.

How does CRIB Property Solution differentiate itself from other players in the real estate industry, particularly in terms of services, approach, or technology adoption?

Functioning as a SaaS-enabled marketplace, our property management software serves as the fundamental backbone of our operations. We are actively expanding our offerings by developing marketplaces tailored to diverse needs. These encompass platforms for tenant acquisition and management, credit facilitation for both landlords and tenants, and connections between landlords and a wide array of vendors.

In contrast to some proptech companies, we refrain from direct involvement in property leasing. Instead, we collaborate with existing landlords, eliminating the necessity to establish our own brand. Rather than competing with established players, our focus lies in uniting a collective force of existing landlords, bringing them together under the Crib umbrella.

Our commitment to a user-friendly interface ensures that transactions are seamless, payments are secure, and communication channels between landlords and tenants are efficient. Whether it's conducting property searches, addressing concerns, or initiating move-out notices, each step is simplified and transparent, guaranteeing a hassle-free experience for all parties involved.

What has been the level of investor interest in CRIB so far, and could you share insights into your future plans?

Till date, we have successfully secured over USD 2.2 million in funding across two rounds, underscoring our potential and garnering industry recognition. Notable investors include Pranay Gupta (Co-founder, 91Springboard) through his AngelList syndicate 91Ventures, WeFounderCircle, Rebright Partners, Vijay Shekhar Sharma (PayTM), Kunal Shah (Cred), Ghazal Alagh (Mamaearth), Ramakant Sharma (Livspace), Sandeep Aggarwal (Droom, ShopClues), Ravi Bhushan (BrightChamps, Housing), Ankur Aggarwal (Dunzo), along with various angel syndicates and funds like Imperier Holdings, FAAD, Rogue Opportunities, Sigurd Ventures, Beej Network, Dream Green Capital Venture, and Supermorpheus Fund, among others.

Our current strategic focus involves fortifying our market presence in existing cities such as Bangalore and Hyderabad. Simultaneously, we harbor ambitious plans to position our offerings in markets like Chennai and Pune. Additionally, we aspire to venture into 20 new markets, including cities like Kota and Dehradun. Our clear objective is to reach a milestone of 2 million beds while concurrently launching new marketplaces to enhance our suite of services. Moreover, we are actively considering the possibility of extending our operations to other countries, with the UAE being a potential target.

Crib's user-friendly interface streamlines property management, facilitating meaningful connections between landlords and tenants through its software and app. The firm provides landlords and tenants with an effective platform to manage various rental properties, including student housing, co-living spaces, paying guest accommodations, and managed service apartments.