99acres is one of the leading real estate portals in India, owned by Info Edge India Limited. Launched in 2005, it offers a platform for property buyers, sellers, and renters to search and list their properties. The platform has over 10 million registered users, and more than 8 lakh properties listed on its website. With its vast database of properties, 99acres has become a go-to destination for people looking for property-related information.
In this blog post, we will explore how 99acres makes money and what revenue streams it relies on.
How does 99acres Work?
99acres is an online platform that connects property buyers, sellers, and renters. The platform works by providing a database of properties for users to search through and connect with property sellers and agents.
Search Functionality
The first step in using 99acres is to use the search functionality to find properties that meet your requirements. The platform allows users to search for properties based on various parameters such as location, type of property, price range, and more. Users can also use advanced search filters to narrow down their search results further.
Property Listings
Once you have found a property that meets your requirements, you can view its listing on the platform. The listing contains information about the property, such as its location, size, price, and amenities. The listing also includes photographs of the property, allowing users to get a better idea of what it looks like.
Contacting Property Sellers
If you are interested in a property, you can contact the seller or agent directly through the platform. The platform allows users to send messages to property sellers, asking for more information or to schedule a viewing. The platform also allows users to save properties they are interested in, allowing them to keep track of properties they have viewed and liked.
Premium Services
In addition to the basic search functionality, 99acres also offers premium services to property sellers and agents. These services include enhanced listings, priority search ranking, and analytics tools. Enhanced listings allow sellers to make their listings more visible by highlighting them on the website. Priority search ranking ensures that the property appears at the top of the search results, making it more likely to be seen by potential buyers. Analytics tools provide valuable insights into the performance of listings, allowing sellers to optimize their strategies.
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Brokerage Services
99acres also offers brokerage services, connecting buyers and sellers with real estate agents and brokers. The platform has a network of agents and brokers who help buyers and sellers connect with each other. When a property is sold or rented out through the platform, the broker earns a commission. 99acres takes a percentage of this commission, generating revenue for the platform.
History of 99acres
99acres was launched in 2005 by Info Edge India Limited, which is one of the largest online classifieds companies in India. The platform was launched as a response to the growing demand for online real estate listings in India. At the time, there were only a few players in the online real estate market, and 99acres quickly gained popularity due to its user-friendly interface and extensive database of properties.
In the early years, 99acres focused on building its user base and expanding its database of properties. The platform quickly became the go-to destination for people looking for property-related information. By 2008, the platform had over 1 million registered users and more than 5 lakh properties listed on its website.
Over the years, 99acres has continued to innovate and improve its platform. In 2012, the platform launched a mobile app, allowing users to search for properties on the go. In 2015, 99acres launched a new feature called ‘Price Trends,’ which allows users to view historical price trends of properties in various locations across India.
In 2019, 99acres launched a new feature called ‘Smart Search,’ which uses AI and machine learning algorithms to provide users with personalized property recommendations. The platform also launched a new advertising campaign in 2019, which focused on highlighting the benefits of using 99acres for property-related needs.
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Today, 99acres is one of the leading real estate portals in India, with over 10 million registered users and more than 8 lakh properties listed on its website. The platform has a strong presence in major cities across India and continues to expand its reach into smaller towns and cities.
How Does 99acres Make Money
Advertising
One of the primary ways 99acres generates revenue is through advertising. The platform has a large user base and an extensive database of properties, which makes it an attractive platform for advertisers. Real estate developers and agents pay to advertise their properties on the website, allowing them to reach a wider audience.
99acres offers various advertising options, including banner ads, sponsored listings, and display ads. These ads appear prominently on the website, ensuring maximum visibility for advertisers. As more and more people use the platform to search for properties, the demand for advertising on 99acres increases, allowing the platform to generate substantial revenue.
Listing fees
Another significant revenue stream for 99acres is listing fees. Property sellers and agents can list their properties on the platform by paying a fee. The fee varies depending on the type of property and the duration of the listing.
Once listed, the property appears in the search results, making it easier for potential buyers to find it. The listing fee ensures that 99acres has a constant stream of income, even if the property is not sold or rented out immediately.
Premium services
99acres offers various premium services to property sellers and agents. These services include enhanced listings, priority search ranking, and analytics tools. Enhanced listings allow sellers to make their listings more visible by highlighting them on the website. Priority search ranking ensures that the property appears at the top of the search results, making it more likely to be seen by potential buyers.
Analytics tools provide valuable insights into the performance of listings, allowing sellers to optimize their strategies. These premium services come at a cost, generating additional revenue for the platform.
Brokerage fees
In addition to advertising and listing fees, 99acres also earns revenue through brokerage fees. The platform has a network of real estate agents and brokers who help buyers and sellers connect with each other. When a property is sold or rented out through the platform, the broker earns a commission.
99acres takes a percentage of this commission, generating revenue for the platform. As more and more people use the platform to buy and sell properties, the demand for brokerage services increases, allowing 99acres to earn more revenue.
99acres Funding, Revenue & Valuation
99acres is owned by Info Edge India Limited, which is a publicly traded company on the Indian stock exchange. Info Edge India Limited is one of the largest online classifieds companies in India and owns several other popular online platforms such as Naukri.com, Jeevansathi.com, and Shiksha.com.
Funding
Since 99acres is owned by a publicly traded company, it does not have a separate funding history. However, Info Edge India Limited has raised funding from various investors over the years, including Temasek Holdings, Steadview Capital, and Naspers. In 2021, Info Edge India Limited raised approximately $95 million through a qualified institutional placement, which will be used to fund its existing and future investments.
Revenue
99acres generates revenue through various sources, including premium listings, brokerage services, and advertising. Premium listings allow property sellers to make their listings more visible on the platform, and brokerage services generate revenue through commissions earned on successful property sales or rentals. The platform also generates revenue through advertising, allowing companies to advertise their services and products on the platform.
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Valuation
As 99acres is owned by a publicly traded company, its valuation is a part of Info Edge India Limited’s overall valuation. As of September 2021, Info Edge India Limited had a market capitalization of approximately $6.7 billion. The valuation of 99acres itself is not disclosed separately, but it is believed to be a significant contributor to Info Edge India Limited’s overall valuation.
99acres Competitors
The online real estate market in India is highly competitive, with several players vying for a share of the market.
Some of the main competitors of 99acres are:
- MagicBricks: MagicBricks is another online real estate platform that connects property buyers, sellers, and renters in India. The platform offers similar search functionality and premium services as 99acres.
- Housing.com: Housing.com is another popular online platform that allows users to search for properties in India. The platform has a strong focus on data-driven insights and analytics, allowing users to make informed decisions when buying, selling, or renting out properties.
- CommonFloor: CommonFloor is an online platform that connects property buyers, sellers, and renters in India. The platform offers a range of search filters and advanced search functionality to help users find properties that meet their requirements.
- Makaan.com: Makaan.com is an online real estate platform that allows users to search for properties in India. The platform has a strong focus on providing a seamless user experience and offers a range of services to property sellers and agents.
- PropTiger: PropTiger is an online platform that connects property buyers, sellers, and renters in India. The platform offers a range of services, including virtual property tours and personalized property recommendations based on user preferences.
Conclusion
In conclusion, 99acres generates revenue through multiple streams, including advertising, listing fees, premium services, and brokerage fees. These revenue streams ensure that the platform has a constant stream of income, making it a profitable business. As the real estate market in India continues to grow, the demand for property-related information and services is only going to increase.
With its vast database of properties and its extensive network of agents and brokers, 99acres is well-positioned to capitalize on this growth and continue to be a dominant player in the real estate industry.