Bangalore based Flatchat has raised USD 2.5 million in seed funding from India’s leading real-estate listing site, CommonFloor.
Flatchat will be using the funds to hire more people for its product and engineering teams, as well as expand into cities where there are high concentrations of students, young professionals, and other people who need roommates. Currently Flatchat has about 40 employees.
The mobile based platform of flatchat claims to have racked up 50,000 users since launching six months ago. Most of their users are university students or single men, but the company plans to start marketing to female users. About 350,000 messages were exchanged through its Android and iOS apps in May.
By working with Flatchat, CommonFloor has a stake in a new market and can also potentially retain renters as users once they are ready to buy their own homes. In turn, Flatchat gets access to CommonFloor’s data, which helps them pinpoint what cities to target next.
Flatchat lets you connect with potential flatmates, prospective owners and other seekers to group with by providing you with location and requirement based matches. At present they have applications for android OS and iOS.
CommonFloor, which is backed by Google Capital, claims to be India’s leading real-estate listing sites, though competitors include Housing.com and 99acres.com.
Gaurav Munjal founder of flatchat said “the startup wants to save renters from combing through dozens of listings on multiple sites and paying broker fees. Users sign up for the app with their Facebook account, create a simple profile, and then filter potential roommates by area and price range. All communications are done through Flatchat’s built-in messaging feature.”
“You don’t need to call anyone, you interact with them through messages. Nobody was targeting this market before,” says Munjal. “We have become the fastest way to find a place or roommate.”