There is power in numbers and that principle drove Vikhyat Srivastava and Sandeep Reddy to launch the world’s first online platform for group buying in real estate, GrOffr.com in 2010. Essentially a real estate broker GrOffr leverages the power of group buying to extract a deeper discount for customers. It also helps developers clock quick bookings. Not just real estate, GrOffr extends itself to the high-end electronics and automobile markets as well.
A key differentiator from other ecommerce portal that sell deals across all verticals and price bands is that GrOfrr focuses on big ticket and high-end products.
The duo claims they have done deals worth Rs 500 crore and saved over Rs 75 crore for their customers. So just how exactly do they make money?
Speaking to CNBC-TV18 (watch accompanying video), Srivastava said "We typically act as a real estate broker. Generally, for any transaction success, whenever it happens, we charge a fee or a brokerage as we call it from the developer. We don’t charge anything to the customers where the primary sales, fresh sales are concerned. Apart from that when it falls under the resell or the rental category, as a typical broker would charge, we charge the customers but give them a discount so that it favors them and gives them a reason to deal with us."
Where the electronic section is concerned, the duo generally keeps a margin for themselves over the cost of the actual goods. "So these are the three primary revenue models that we have with us," Srivastava said.