Revolutionizing Rental: How This Ahmedabad Startup is Changing the Game for Bachelor and Working Professional Accommodation

Navigating India’s Urban Housing Challenges for Working Professionals

In India’s bustling urban landscapes, thousands of working professionals, particularly bachelors, struggle to find suitable, scam-free accommodation that ensures safety, comfort, and a sense of community. Traditional online portals and broker networks often fall short, exposing them to scams, exorbitant fees, and subpar living conditions. Women, in particular, face additional safety and harassment challenges.

This issue hit home for Hemant Solanki when he helped a friend, a working professional dissatisfied with PG accommodations, search for a better flat. Despite exploring online portals like Magicbricks and Housing.com, Hemant’s friend received no assistance and fell victim to scams by two brokers.

Determined to find a solution, Hemant expanded his search efforts. He delved into online flat and roommate hunting groups, revisited online portals, and contacted over 100 individuals. This eye-opening experience revealed that the problem extended far beyond his friend, affecting countless others.

To address this widespread issue, Hemant founded Citynect—a secure and supportive community designed to connect bachelors in the city, providing them with reliable housing solutions.

The Initial Challenges

Hemant’s journey began with significant hurdles, including gaining a deep understanding of the market and the existing solutions offered by players in the PG and hostel segment.

During his research, Hemant discovered that most PGs and hostels were primarily designed for students, leaving working adults who desired more freedom and personal space underserved.

Another major challenge was building a trustworthy community. Instead of using Facebook, Hemant chose WhatsApp to create the community, allowing for better control and the ability to remove unnecessary members.

“Initially, people were hesitant to trust us, but we persisted in promoting the community. It grew from 3,000 to 10,000 members in just a few months entirely through user referrals, with zero spent on marketing. This built our confidence as people were paying us for our help,” Hemant shares.

Hemant recalls that in March 2023, they started with the idea of creating a networking app for single people moving to new cities for jobs or studies.

“But after surveying and talking to around 700 to 800 people, we found out they were mainly struggling with three things: finding a place to live, getting food, and making friends. We realized that finding a place to live was the biggest issue for them, so we shifted our focus to help with that,” he explains.

Standing Out from the Crowd

Citynect sets itself apart by catering to a diverse range of accommodation needs, including Sharing Flats, Flatmates, and Pre-occupied Flats (Main Category), along with PGs tailored for working professionals, corporate stay houses, and Private Flats for bachelors.

Founder Hemant explains, “While there are numerous PG and hostel platforms for students aged 16 to 18, and options like Magicbricks and Housing for individuals over 25, there’s a significant gap in the market for those aged 18 to 25. This is precisely where Citynect steps in.”

He underscores Citynect’s dedication to serving bachelors, especially working professionals, establishing it as a distinctive platform facilitating direct tenant-to-tenant connections. “That’s our unique selling point,” Hemant asserts, highlighting Citynect’s unparalleled focus and value proposition.

How Citynect Generates Revenue?

Citynect operates on a subscription model, collecting an initial subscription fee from users accessing its services. The company intends to expand its offerings to include supplementary services such as online background checks and rental agreements, enhancing its per-ticket revenue potential.

As Hemant explains, Citynect facilitates direct connections between property owners and tenants, particularly catering to bachelor accommodations. This approach enables property owners to sidestep brokerage fees, fostering a cost-effective and streamlined rental process.

Funding and Growth: Citynect’s Journey

Citynect embarked on its journey with a humble investment of just Rs 20,000, operating as a bootstrapped startup from inception. Notably, the startup secured an SSIP grant totaling Rs 1.3 lakh to fuel its early growth.

Hemant, Citynect’s founder, highlighted the strategic utilization of resources such as AWS credits to optimize costs. The presence of an in-house tech team further facilitated cost savings. Presently, the startup is poised to raise funds to accelerate its expansion endeavors.

Having facilitated accommodation for over 1,000 bachelors in Ahmedabad, Citynect recently introduced premium services, garnering over 250 subscribers and generating approximately Rs 2.5 lakh in pre-revenue.

Distinguishing itself from its funded counterparts, Citynect prioritizes organic growth and leverages interns to manage its operations. This approach has proven successful, boasting a profit margin exceeding 60%.

Future Strategies

Citynect sets its sights on global recognition within its specialized sector, providing an all-encompassing platform for accommodation, networking, and lifestyle management.

“We understand that the search for accommodation extends beyond India. Those relocating to regions like the Middle East or Europe for employment or education face similar obstacles,” explains Hemant.

While the startup concentrates primarily on Bengaluru, Mumbai, and Hyderabad, Hemant acknowledges the challenges posed by these cities’ established players.

“The key lies in grasping the intricate dynamics of these locales. Though we’ve been operational for a year and have observed users from Bengaluru and surrounding areas shifting to Ahmedabad, reflecting comparable user behavior, the primary hurdle lies in persuading property owners to embrace our platform,” Hemant elaborates.

Additionally, Citynect plans to integrate AI technology into its online platform to provide practical solutions and enhance user experience.

“In the forthcoming period, our paramount focus remains on crafting features that directly address genuine concerns and significantly enhance users’ lifestyles,” Hemant adds.