Younger consumers fuel NoBroker’s financial services business amid bullish homebuying cycle

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Subscribe to enjoy similar stories. NoBroker, the Tiger Global-backed prop-tech startup, sees a burgeoning opportunity in its home loans and insurance vertical as more younger consumers look to invest in houses, a top executive told Mint. The Bengaluru-based company gets a fourth of its over ₹600 crore revenue from financial services and expects its home loans vertical to become its second-biggest business in the coming years, trailing its main real estate buying-and-selling business, said Saurabh Garg, co-founder and chief business officer at NoBroker.

“The number of houses we are selling every month is increasing. At the same time, our attach rate is also increasing. I believe home loans have the potential to become very large," Garg said, noting that the vertical is already its fastest growing business.

The attach rate reflects demand growth for a secondary product (home loans) because of demand for a primary product (homes). NoBroker's home loans vertical grew threefold in FY24, the company said, declining to reveal numbers. The executive expects the home-buying cycle in the country to pick up well in the next 4-5 years, further driving the need for easy financing options.

He said the real estate sector moves in cycles and after almost a decade of slow growth it has entered the fast-growth stage. There is genuine demand from buyers and interest rates are expected to come down, he said. Moreover, as average rent inflation in India outpaces annual salary increments and creates challenges for tenants, home-purchasing decisions are looking up, according to Garg.