MIRA INFORM REPORT

Report Date :

22.10.2014

IDENTIFICATION DETAILS

Name :	MAXHEAP TECHNOLOGIES PRIVATE LIMITED
Registered Office :	#298, 299, SGR Towers, 7^th Cross, Domlur Layout, Bangalore – 560071, Karnataka
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	17.04.2008
Com. Reg. No.:	08-046105
Capital Investment / Paid-up Capital :	Rs. 17.436 Millions
CIN No.: [Company Identification No.]	U72200KA2008PTC046105
Legal Form :	Private Limited Liability Company
Line of Business :	The Main Object of the company is of providing Online communication and management tools to residential housing societies in India and maintenance of websites for this purpose.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

B (33)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 90000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The company possesses a moderate financial profile marked by acceptable networth base and comfortable capital structure backed by zero gearing along with sufficient cash balance during the year under review. Management has witnessed an increased revenue from its small scale of operations, whereas has reported consecutive losses which may affect the liquidity profile during FY 13. However, trade relations seem to be fair. Business is active. Payment terms are reported as slow but correct. In view of technical expertise and experience of the promoters, the company can be considered for business dealings with caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

N E W S

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION DENIED

Management Non-co-operative (91-80-49374000)

LOCATIONS

Registered Office :	#298, 299, SGR Towers, 7^th Cross, Domlur Layout, Bangalore – 560071, Karnataka, India
Tel. No.:	91-80-49374084
Fax No.:	Not Available
E-Mail :	sumit@commonfloor.com
Website :	http://www.maxheap.com

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Subrata Mitra

Designation :

Additional Director

Address :

A 401, Mantri Elegance Banneghatta Road, Bangalre – 560076, Karnataka, India

Date of Birth/Age :

29.09.1965

Date of Appointment :

30.09.2013

DIN No. :

00570124

Other Directorship :

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U92490KA2007PTC042699	Chakpak Media Private Limited	Director	30/10/2008	16/08/2007	-	Under liquidation	NO
2	U51507TN2005PTC065950	PERFINT HEALTHCARE PRIVATE LIMITED	Director	24/09/2007	14/09/2007	-	Active	NO
3	U72200KA2008PTC048012	FLIPKART ONLINE SERVICES PRIVATE LIMITED	Nominee director	30/09/2010	30/10/2009	09/05/2012	Active	NO
4	U72300KA2007PTC041799	Myntra Designs Private Limited	Director	29/09/2010	29/07/2010	23/06/2014	Active	NO
5	U73100KA2005PTC036337	PROBE EQUITY RESEARCH PRIVATE LIMITED	Nominee director	24/12/2010	24/12/2010	-	Active	NO
6	U72900KA2008PTC047489	Accel India Management Company Private Limited	Director	19/09/2011	20/01/2011	-	Active	NO
7	U72200KA2010PTC056374	REINDEER SOFTWARE SOLUTIONS PRIVATE LIMITED	Additional director	18/03/2011	18/03/2011	24/06/2011	Active	NO
8	U72200KA2010PTC055285	Funstar Studios Private Limited	Director	28/03/2011	28/03/2011	22/08/2013	Active	NO
9	U74900KA2011PTC060830	SALAR ONLINE WHOLESALE PRIVATE LIMITED	Director	05/12/2012	17/01/2012	23/03/2013	Active	NO
10	U72200KA2010PTC056036	CrowdANALYTIX Solutions Private Limited	Nominee director	18/05/2012	18/05/2012	-	Active	NO
11	U72200KA2012PTC062638	Moonlander E-commerce Private Limited	Nominee director	30/06/2012	30/06/2012	-	Active	NO
12	U72900TG2011PTC075505	MySmartPrice Web Technology Private Limited	Director	28/07/2012	28/07/2012	-	Active	NO
13	U72200KA2008PTC046105	maxHeap Technologies Private Limited	Director	30/09/2013	30/06/2013	-	Active	NO
14	U74900KA2013PTC069389	SCRIPBOX ADVISORS PRIVATE LIMITED	Director	14/10/2014	20/08/2013	-	Active	NO
15	AAC-0263	ERASMIC INVESTMENT ADVISORS LLP	Designated Partner	24/01/2014	24/01/2014	-	Active	NO
16	AAC-1038	ACCEL PARTNERS INDIA LLP	Designated Partner	19/02/2014	19/02/2014	-	Active	NO

Name :

Mr. Lalit Mangal

Designation :

Whole-time Director

Address :

Flat No. 002, Block 16, Sun City Apartments, Sarjapur Junction, Outer Ring Road, Bangalore – 560102, Karnataka, India

Date of Birth/Age :

12.10.1984

Date of Appointment :

24.04.2008

DIN No. :

02122750

Name :

Mr. Sumit Jain

Designation :

Whole-time Director

Address :

Flat No. 101, Golden Corner Apartments, Sarjapur Road, Bangalore – 560035, Karnataka, India

Date of Birth/Age :

13.06.1984

Date of Appointment :

24.04.2008

DIN No. :

02122751

Other Directorship :

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U72200KA2008PTC046105	maxHeap Technologies Private Limited	Whole-time director	24/04/2008	17/04/2008	-	Active	NO
2	U74120MH2013PTC245155	Flat Dot To Technologies Private Limited	Additional director	22/05/2014	22/05/2014	-	Active	NO

Name :

Mr. Lee Jared Fixel

Designation :

Director

Address :

101 S F T Lauderdale Beach Blvd, Unit 2005, Fort Lauderdale, FL 33316, United states of America

Date of Birth/Age :

23.02.1980

Date of Appointment :

06.09.2011

DIN No. :

02635091

Other Directorship :

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U72200MH2006PTC218082	IIJT EDUCATION PRIVATE LIMITED	Nominee director	03/08/2009	21/07/2009	04/02/2010	Active	NO
2	U80101TG1995PTC022594	TRIUMPHANT INSTITUTE OF MANAGEMENT EDUCATION PRIVATE LTD.	Director	22/07/2009	22/07/2009	08/01/2010	Active	NO
3	U72200KA2008PTC048012	FLIPKART ONLINE SERVICES PRIVATE LIMITED	Director	30/09/2011	10/12/2009	09/05/2012	Active	NO
4	U72300KA2007PTC041799	Myntra Designs Private Limited	Director	29/09/2010	28/07/2010	23/06/2014	Active	NO
5	U52393TN2007PTC064830	Carat Lane Trading Private Limited	Director	03/02/2011	03/02/2011	-	Active	NO
6	U72200KA2010PTC056374	REINDEER SOFTWARE SOLUTIONS PRIVATE LIMITED	Additional director	18/03/2011	18/03/2011	12/09/2012	Active	NO
7	U74900KA2011PTC072315	Moms Supplies Private Limited	Director	02/09/2011	02/09/2011	-	Active	NO
8	U74900MH2000PTC126237	MXC SOLUTIONS INDIA PRIVATE LIMITED	Nominee director	02/09/2011	02/09/2011	24/12/2013	Active	NO
9	U72200KA2008PTC046105	maxHeap Technologies Private Limited	Director	06/09/2011	06/09/2011	-	Active	NO
10	U72900MH2010PTC240894	ANI TECHNOLOGIES PRIVATE LIMITED	Nominee director	27/03/2012	26/03/2012	-	Active	NO
11	U18101KA2010PTC056411	Robemall Apparels Private Limited	Additional director	16/11/2012	16/11/2012	20/09/2013	Active	NO
12	U74140DL2011FLC226246	HIKE LIMITED	Director	01/10/2014	11/09/2014	-	Active	NO

MAJOR SHAREHOLDERS

As on 30.09.2013

Equity Shares

Names of Shareholders	No. of Shares
Lalit Mangal	24515
Sumit Jain	24515
Vikas Malpani	4260
Boddapaty Anand	805
Sameer	320
Nandini Hirianniah	320
Accel India Venture ll (Mauritius Limited)	100
Tiger Global Six India ll Holdings	100
Total	54935

Preference Shares

Names of Shareholders	No. of Shares
Accel India Venture ll (Mauritius Limited)	51333
Tiger Global Six India ll Holdings	76846
Total	128179

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	0.36
Directors or relatives of Directors	89.25
Other	10.39
Total	100.00

BUSINESS DETAILS

Line of Business :

The Main Object of the company is of providing Online communication and management tools to residential housing societies in India and maintenance of websites for this purpose.

GENERAL INFORMATION

Suppliers :	Airtel Vodafone ABODE Accord Consultants Private Limited Advin Media Solutions Aiswaryani Cateres Akansha Mishra Alpha Tele Systems Alpine Eco Apartment Owners Welfare Association Amit Swain Anand Kumar-Creditors Ananthula Kruthi Ankita Garg Ankit Negi Anthony Thanaraj ANZ Pest Control Services Atria Convergence Technologies Private Limited Averi Dulta Avinash Kumar Singh Azhar Kothawala Bescom Bethel Services Bhavana Anurag Brandbaron Marketing Private Limited Career Xperts Consulting Dazzle International Private Limited Dzinden IT Services Private Limited Elitmus Evaluation Private Limited Entertainment Network (India) Private Limited Exotel Techcom Private Limited
Customers :	BCIL Red Earth Developers India Private Limited Bennett property Holding Company Limited Bliss Tree Infracon Private Limited Blue Jay Enterprises Blue Rock E Services Private Limited Blue Valley Bon Voyage BRC Infra Private Limited Bren Corporation Brigade Enterprises Limited
No. of Employees :	Information declined by the management.
Bankers :	Not Available
Facilities :	Not Available

Banking Relations :	--
Auditors :
Name :	Ganapath Raj and Company Chartered Accountants
Address :	F- 113, 2A, Central Chambers,2^nd Floor, 2^nd Main Road, Gandhinagar, Bangalore – 560009, Karnataka, India
Tel. No.:	91-80-22262821 / 22256760
E-Mail :	cgraj@dataone.in
PAN No.:	AAHFG7712L

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
500200	Equity Shares	Rs.2/- each	Rs. 1.000 Millions
21467	Preference Shares	Rs. 478/- each	Rs. 10.261 Millions
156058	Preference Shares	Rs. 100/- each	Rs. 15.606 Millions
	Total		Rs. 26.867 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
54935	Equity Shares	Rs.2/- each	Rs. 0.110 Millions
21467	Preference Shares	Rs. 478/- each	Rs. 10.261 Millions
106712	Preference Shares	Rs. 100/- each	Rs. 10.671 Millions
	Total		Rs. 21.042 Millions

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.2/- each	Rs. 1.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
54735	Equity Shares	Rs.2/- each	Rs. 0.109 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	17.436	17.436	10.371
(b) Reserves & Surplus	14.338	111.938	-4.342
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	31.774	129.374	6.029
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.397	0.085	0.022
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	0.397	0.085	0.022
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	3.615	1.143	0.486
(c) Other current liabilities	2.205	0.823	0.910
(d) Short-term provisions	11.795	3.932	0.108
Total Current Liabilities (4)	17.615	5.898	1.504
TOTAL	49.786	135.357	7.555
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	0.000	0.000	0.000
(ii) Intangible Assets	6.806	1.140	0.383
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	9.269	6.608	3.464
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	5.176	1.129	0.300
(e) Other Non-current assets	2.698	6.787	0.000
Total Non-Current Assets	23.949	15.664	4.147
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	0.000	0.000	0.000
(c) Trade receivables	3.198	1.201	1.922
(d) Cash and cash equivalents	22.051	118.436	1.427
(e) Short-term loans and advances	0.462	0.042	0.059
(f) Other current assets	0.126	0.014	0.000
Total Current Assets	25.837	119.693	3.408
TOTAL	49.786	135.357	7.555

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2013	31.03.2012	31.03.2011
	SALES
	Income	48.235	7.686	7.686
	Other Income	6.274	7.035	NA
	TOTAL (A)	54.509	14.721	NA
Less	EXPENSES
	Employees benefits expense	88.909	20.453
	Other expenses	61.509	11.612
	TOTAL (B)	150.418	32.065	25.030
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	(95.909)	(17.344)	(17.344)
Less	FINANCIAL EXPENSES (D)	0.000	0.000	0.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	(95.909)	(17.344)	(17.344)
Less/ Add	DEPRECIATION/ AMORTISATION (F)	1.378	0.389	0.389
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	(97.287)	(17.733)	(17.733)
Less	TAX (H)	0.312	0.063	0.063
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	(97.599)	(17.796)	(17.796)
	Earnings / (Loss) Per Share (Rs.)	(1783.13)	(325.15)	(97.19)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(179.05)	(120.89)	NA
Net Profit Margin (PBT/Sales)	(%)	(201.69)	(230.72)	(230.72)
Return on Total Assets (PBT/Total Assets}	(%)	(240.11)	(13.77)	(433.46)
Return on Investment (ROI) (PBT/Networth)		(3.06)	(0.14)	(2.94)
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.47	20.29	2.27

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	10.371	17.436	17.436
Reserves & Surplus	(4.342)	111.938	14.338
Net worth	6.029	129.374	31.774
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	7.686	7.686	48.235
		0.000	527.570

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	7.686	7.686	48.235
Profit	(17.796)	(17.796)	(97.599)
	(231.54%)	(231.54%)	(202.34%)

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	No
24]	Banking facility details	No
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	-----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

PRESS RELEASE:

Business Standard

Building bridges between neighbours

An apartment management platform and a community-driven approach have helped CommonFloor break away from the clutter of property portals

An agitation by the residents of a housing society in Bangalore following a ruptured water pipeline in their complex saw three friends, all in their mid-20s, pool their technical expertise and savings on an online platform for apartment owners to address common issues.

In 2007, convinced they had a viable business idea at hand, the trio - Sumit Jain, Lalit Mangal and Vikas Malpani - gave up lucrative jobs at multinational companies to start their own venture. "We just wanted to create a product that would help apartment owners manage their property better and facilitate daily chores," says Jain, co-founder and chief executive of maxHeap Technologies, the company that runs CommonFloor.com. In December 2007, the trio kicked off Common Floor, three months after it was conceptualised, as a free collaborative apartment management software platform, and test-marketed it across 20 apartment societies in the city.

Cut to April 2013, Bangalore-based maxHeap Technologies runs a Rs 100.000 Millions business, with about 60,000 housing societies on its apartment management platform. Its revenues rose five-fold compared with Rs 20.000 Millions in 2011-12. Through the last two years, CommonFloor.com has morphed into one of the fastest growing property portals in the country, facilitating buying, selling and renting of properties, a segment that accounts for almost all the company's revenue.

What sets it apart is its apartment management platform is offered free to registered property owners. "This is akin to the Google model, in which the platform is free for the end-user (property owners), while the business customer pays for the service," says Jain, who claims to have about 1,000 paid customers.

The company's new office in Domlur has been a bee-hive of activity, with scores of interviewees fleeting in and out; the start-up recruited 100-odd employees through the last six months. This followed a second round of funding by two venture capital funds, Accel Partners and Tiger Global, in October 2012.

CommonFloor provides members regular updates on maintenance, track payment dues and complaints. Members can search for a plumber, carpenter or maid; create subgroups based on shared interests such as gardening, car pool or yoga. They keep themselves updated through email and SMS alerts, while a mobile app keeps neighbours connected on the go. The platform also helps resident welfare associations manage their expenses and accounts online.

This has created a growing community of property owners (five-million strong), a ready market for service providers and a database for buyers, real estate agents and developers to tap into.

Consider the case of Sandeep Gupta, joint secretary of the resident welfare association of The White House, a 165-flat complex in a tiny Gurgaon suburb. Gupta was introduced to the concept by a few residents who had chanced upon the platform in another city. "The society has been using the platform for six-odd months, maintaining accounts, sharing information with members and regularly updating the membership list," he says.

Jain says, according to research by the firm, at any point, typically, 40 per cent of property owners in a society scout for tenants, creating a constant churn of activity and deals. This flux creates a steady stream of visitors to the real estate portal. The visitors include prospective buyers, sellers, tenants, property brokers and developers. For Vinod Advani, vice-president, Maangalya Developers, a prominent Bangalore-based realtor, the platform offers a better conversion rate than most other property portals. "Their biggest strength is they are more end user- and owner-oriented," says Advani.

Hard knocks

Building the apartment management platform was perhaps the easiest part of the venture. Getting societies to use the platform, generating user-oriented content, and building a scalable business model around it was the difficult part. "We knew we had a winner in our hands, as there was nothing like this in the market," says Jain. But success didn't come without some hard knocks.

After giving up their cushy jobs, Jain and Mangal, software engineers from IIT-Roorkee and ex-colleagues at Oracle India, and Malpani, who had a stint at SAP Labs, operated out of their houses for about a year. It was their cumulative savings pool of Rs 0.500 -1.000 Millions that saw them through the early months. "We were prepared for a long haul," says Jain.

It took the trio six months of intensive word-of-mouth marketing, with help from friends and family, to rope in 700-odd societies. A four-month stint at the business accelerator programme of The Morpheus, a start-up accelerator, in mid-2008, came in handy. Sameer Guglani, co-founder, The Morpheus, and his team helped fine-tune the business model. "At that point, they operated within a closed user group. We looked at ways to make their database of property owners more publicly available and reach out to a larger market set," says Guglani.

Then, venture fund Accel Partners stepped in. It provided them a small office space in the heart of Bangalore and, in early 2009, invested in the company. "Only when we started operating out of an office did we realise the power of working together under one roof," says Jain.

After about a year of existence, the start-up started taking shape. The team strength grew from three to 30 by 2010, 300 in 2012 and 400 by this April. Through the last two years, the leadership team grew from three to one that had 10 members. "Hiring the senior management team was a challenge," says Jain. Today, salaries account for 70 per cent of operational expenses; the rest is spent on rentals and other operations. "We kept our cash burn low by relying largely on word-of-mouth marketing," says Jain. But that might have to change, as the start-up scales up beyond Bangalore and prepares to take on seasoned competitors such as 99acres and MagicBricks. New-age niche consumer-focused property portals such as Housing.co.in, too, are getting their act in place.

Entering enemy territory

In 2009, maxHeap Technologies launched its real estate portal, CommonFloor.com. Initially, this was like any other property portal, listing properties for sale and rental, offering developers online space to market their properties, or agents to list properties. However a growing community of registered users of the company's apartment management platform created a steady flow of traffic to the portal.

The advertising-driven revenue model gained traction, as the size of the community doubled from about 30,000 to about 60,000. Jain, Mangal and Malpani have set a revenue target of about Rs 125 crore through the next two years. Jain says the venture is already profitable. He, however, declines to share details of investment and profitability, citing non-disclosure agreements with investors.

But classified advertising is a space where rivals such as 99acres and MagicBricks have a head start. The advertising market for real estate portals is estimated to attract Rs 3000.000 – 4000.000 Millions a year. A few existing CommonFloor customers such as Advani of Maangalya concede the portal could do with some improvement in marketing properties to prospective buyers.

"Having access to property owners will provide advantage to CommonFloor in the rental market. For purchase of property, access to builders and agents would have to be built, just as other property classified players are doing," says Alok Mittal, managing director, Canaan Partner, a venture fund that has invested in Indiaproperty.com, a competing portal.

Bangalore is the only market in which CommonFloor claims to have a lead. "Bangalore is our bread-and-butter market," concedes Malpani, head of marketing and communities. It ranks third or fourth in other markets, primarily due to low brand awareness. Malpani says through the last six months, the company has set up marketing offices in eight cities across the country. Also, about a third of the headcount is now directed at marketing and sales-related activities.

As the business scales up, the challenge would be to retain its end-user focus. "CommonFloor's USP has been its B-to-C focus, with its community approach. They should not fall prey to competitive pressures while serving the needs of the paying customers," cautions Guglani of The Morpheus.

With several niche property portals targeting specific market segments such as bachelor pads, paying-guest accommodation for women, etc, it remains to be seen whether CommonFloor would be able to retain its focus on societal concerns, as they grapple with commercial pressures.

FACT BOX

Area of Business: Apartment management software & realty portal

Revenue: Rs 10 crore (FY12-13)

Target: Rs 125 crore by 2014-15

HOW COMMONFLOOR'S APARTMENT MANAGEMENT PLATFORM HELPS...

..Residents...

• Get things done from comfort of homes
• Stay updated
• Get issues heard and addressed
• Find service providers like plumber, maid, carpenter

...Associations...

• Ease of management
• Track collection of dues
• Maintain accounts & finances

...Service providers/vendors...

• Ready database of prospective customers

EXPERT TAKE

Incumbent leaders in the real estate portal space in India are six to eight years old, and they haven't changed much. They are just a listing site for brokers; usually, all you can find on the portal is the number of a broker. The market is very large and, recently, a lot of new players have emerged. These include Housing.co.in and the likes of Quickr. Most players have relied on media spend to pass their names to users. CommonFloor has taken a different route -they have a free give-away software for housing societies. Thus, they get their traffic without media spend.

However, merely getting users to your portal free of cost might not be enough. A real estate portal has to try to disrupt the market status quo. Nobody is giving you a social connect to your landlord and tenant, something that would add more trust to the transaction; nobody is saying 'we will eliminate brokers completely'; nobody is giving enough photos and research data online; and nobody has a solid mobile app. Some new players have come up with brave attempts and only those would survive in the long run. Just being a listing site such as Justdial wouldn't be enough in the long run. CommonFloor has to translate its initial advantage through its community software to more value-add for its customers.

Anand Lunia, founder-partner, India Quotient, a super angel fund that has invested in two-start ups in the property portal space

VIEW INDEX OF CHARGES: No Charges Exist for Company

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 61.29
UK Pound	1	Rs. 99.15
Euro	1	Rs. 78.58

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	SUB
Report Prepared by :	TRU

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		33

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

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