Studied this a bit more through last week, and I am extremely tempted to take a 2.5% position right away. PropTech is a massive whitespace which is just starting in India. It is a lot more mature in many other parts of the world.
I watched a couple of interviews of the founders of two of Aurum’s subsidiaries – Housemonk and BeyondWalls, and I liked what I saw. I have heard good thongs about Sell.do as well – lot of testimonials from RE players on this one. IN the concall Aurum ha smentioned that they will continue to look for inorganic opportunities to become an end to end integrated PropTech ecosystem. This will be one of a kind and unique in many ways – the cross selling potential in my view will be very large.
Aurum is also working on very interesting platform to allow part ownership of individual properties. In an REIR one gets a piece of a cluster of real estate, Aurum is wanting to do this for individual residential and commercial properties. This exists at the moment but minimum ticket size is 25 lakhs. Aurm is trying to do this for smaller ticket sizes – making RE investments accessible to retail folks. This can be a pretty big product in itself.
All of this for under 1000cr and with 400cr cash on books. While I learn more, I will likely initiate a start-up like position on this next week. Sold Affordable today at 147 to swap with Aurum. A better model in a better sector and better competitive structure for Aurum compared to Affordable in my view, and I have constraints of not wanting too many microcap investments with limited information, plus wanting to keep my total holdings to 20 or under.
Also evaluating swapping Allcargo for Gati. Have taken a tracking position in Gati earlier this week. Same pedigree of management, completely India focused business as opposed to global exposure for Allcargo, expected to grow faster than Allcargo, and not too much more expensive in terms of valuation. Seems like better risk-reward.
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