Everybody mistrusts brokers. BroEx gets $1M to give the trade an image makeover

Real estate brokers’ network BroEx raised seed funding of US$1 million from Lightspeed India Partners today. Oku Tech, the parent company of BroEx is a Gurgaon-based startup that was incorporated in 2014.

Oku Tech builds enterprise messaging applications for emerging businesses in India and believes that this space needs more specialized and precise solutions. They are currently present in Mumbai, Delhi NCR, Pune, Bangalore, Jaipur, and Ahmedabad.

With the latest funding, Oku Tech plans to expand BroEx to second- and third-tier cities in India. It also plans to invest in developing additional products to complement BroEx. Pallav Pandey, founder and CEO of Oku Tech, told reporters that the firm plans to launch two more apps and hire talent with the funding.

At this point, BroEx has a network of 25,000 brokers as monthly active users. The app helps brokers connect with other brokers to share information on client requirements, rental listings, and sale listings. It wants to ensure accurate transfer of information between brokers and to increase their network beyond their professional and personal ones.

According to Oku Tech, the real estate market in India has 50,000 brokers and agencies generating US$4 billion in brokerage fees annually. The company believes that the market is fragmented, which inhibits the efficiency of information exchange. So, it wants to promote a strong network of brokers in India to improve the industry’s credibility.

With investments close to US$550 million in the Indian real estate market in 2015, the investors’ appetite for startups only seems to be increasing. Also, with rival startups like NoBroker and Nestaway, working towards eliminating the role of a broker in real estate deals, BroEx has a big task ahead.