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Mobile-based security management startup myGate raised its first round of funding, to the tune of USD 2.5 million or Rs 16 crore, led by Prime Venture Partners, this week.
The Bangalore-based company, which is only targeting residential gated communities, raised the funds to strengthen its technology stack and to expand to new markets. In the next six months, myGate will expand its presence to cities such as Pune, Hyderabad, and Delhi-NCR, Vijay Arisetty, CEO and co-founder of myGate said.
“I came across myGate through a personal experience first and then we sought them out for evaluation. The solution they provide is unique in many ways, but the most attractive part is the addressable market myGate is gearing up for; it’s huge,” said Sanjay Swamy, Partner at Prime Ventures.
myGate has a simple app-based operation, wherein it seeks to digitise security system in gated communities, attempting to replace the conventional system of 'man-guarding', paper and pen logging of visitors, and intercom system.
According to Arisetty, the addressable market for myGate is spread across more than 15 million gated communities, housing over 35 million residents, in the top 7 cities alone. The market spend on residential security systems was around Rs 3,000 crore in 2017, which is expected to grow to Rs 10,000 crore by 2020, he added.
A Grant Thornton report states that the security services market in India is a USD 6 billion industry, of which the gated-premises security market, comprising manual guards and security equipment, is estimated at USD 2 billion.
According to Arisetty, an ex-IAF pilot and Shaurya Chakra awardee, significant investments made towards putting in place the physical infrastructure for security such as access cards, boom barriers, biometrics, landline intercom, are capital intensive and not completely foolproof.
“Gated communities, with an average 3,000 homes, see an inflow of over 5,000 visitors daily including delivery executives, maids, cabs and so on. Residential premises are unable to keep track of all effectively. Some security procedures are also a hassle for the visitors, if you are having friends over! We are solving these issues with zero capex and zero maintenance liability for these communities,” he adds.
myGate operates with a simple Android app that sits in the security guards’ phone, while another Android/iOS app is used by each member of a family to approve, deny or pre-approve visitors to their apartment. The app also has a voice call support for non-smartphone users or in case of delay in approval by members of a household.
The startup has tied up with telecom service providers such as Vodafone and Jio to provide a separate SIM card with data connectivity to all guards.
The platform requires all visitors to be logged digitally using a number code at all entry and exit points. The app notifies if the housemaid has entered the gated premises, or when they leave. It also empowers parents to approve or deny remotely from any location if their kids are leaving the gated premise.
Since its inception in 2016, myGate has validated 24 million visits through its mobile app across 100,000 homes. The startup is targeting to scale up to 2 million homes across top 7 cities within the next two years.
The startup has also partnered builders like Sobha, Prestige, Purvankara, Lodha, and others, for deployment of its solutions. They are also testing the solution for other gated premises, such as office buildings, schools, and factories.
myGate operates on a subscription model, which can vary between Rs 8,000 to Rs 30,000 per month for one gated community, based on the number of houses, exit and entry gates to monitor.
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