Ahmedabad-Based Startup Simplifies Brokerage-Free Accommodation for Bachelors and Working Professionals

In the bustling urban landscapes of India, thousands of working professionals, especially bachelors, face significant challenges in finding suitable, scam-free accommodation that meets their needs for safety, comfort, and community. Traditional online portals and broker networks often fall short, leaving individuals vulnerable to scams, high fees, and unsuitable living conditions. This issue is further compounded for women, who encounter additional challenges related to safety and harassment.

A Personal Journey Leads to Citynect

The problem became personal for Hemant Solanki when he assisted a friend—a working professional dissatisfied with PG accommodations—in searching for a more suitable flat. Despite exploring online platforms like Magicbricks and Housing.com, Hemant's friend found no help and had even been scammed by two brokers. This prompted Hemant to expand his search efforts, delving into online flat and roommate hunting groups, revisiting online portals, and reaching out to over 100 individuals. His eye-opening experience revealed that the issue was not limited to his friend but affected a vast number of individuals.

To address these challenges, Hemant founded Citynect, a safe and supportive community aimed at connecting bachelors in the city.

Initial Challenges and Community Building

The journey to establish Citynect was not without its hurdles. Hemant faced challenges in understanding the market and current solutions offered by existing players in the PG and hostel segment. His research revealed that most PGs and hostels catered mainly to students, neglecting working adults who sought more freedom and their own space.

One of the significant challenges was establishing a trustworthy community. Hemant opted to create a WhatsApp group instead of using Facebook, allowing for better control and the removal of 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.

In March 2023, Citynect began with the idea of creating a networking app for single individuals moving to new cities for jobs or studies. However, after conducting surveys and talking to around 700 to 800 people, Hemant discovered that they were primarily struggling with three main issues: finding accommodation, obtaining food, and making friends. Recognizing that the search for a place to live was the most pressing concern, the focus shifted to address that need.

Differentiating from Other Platforms

Citynect helps users find various accommodations, including sharing flats, flatmates, and pre-occupied flats (main categories), as well as sharing PGs for working professionals, corporate stay houses, and private flats for bachelors. “While there are multiple PG and hostel platforms for students aged 16 to 18, and platforms like Magicbricks and Housing for audiences over 25, the main gap lies in the 18 to 25 age group. This is where Citynect comes in,” Hemant explains.

He emphasizes that Citynect focuses on serving bachelors, particularly working professionals, creating a unique platform where tenants can connect directly with each other. "That's our unique selling point," he adds.

Revenue Model

Citynect operates on a subscription-based model, charging an upfront subscription fee from users who wish to utilize its services. The startup plans to offer additional services such as online background verification and rent agreements, which are expected to increase the per-ticket size.

Hemant explains that Citynect lists properties available for bachelors, allowing owners to connect directly with tenants and avoid brokerage fees.

Funding and Growth Trajectory

Citynect was launched with just ₹20,000 and has remained a bootstrapped startup since inception. Notably, the startup has received an SSIP grant of ₹1.3 lakh. “We utilized resources like AWS credits to save costs. Having an in-house tech team has also been beneficial in managing expenses,” Hemant noted. Currently, Citynect is looking to raise funds to fuel further expansion.

The startup claims to have helped over 1,000 bachelors in Ahmedabad find accommodation. Recently, it began offering premium services, attracting over 250 subscribers and generating approximately ₹2.5 lakh in pre-revenue.

Unlike other funded startups, Citynect prioritizes organic growth and employs interns to manage its operations. This approach has led to profitability, with a profit margin exceeding 60%.

Future Aspirations

Citynect aims to establish itself as a global brand in this specific niche, offering a comprehensive platform for accommodation, networking, and lifestyle management. “We recognize that the accommodation search challenge is not limited to India alone. Individuals relocating to countries such as those in the Arab region or Europe for work or study encounter similar hurdles,” Hemant explains.

While the startup primarily targets Bengaluru, Mumbai, and Hyderabad, Hemant acknowledges that these cities present significant challenges due to the presence of established players. “Understanding the deep roots of these localities is essential. While we have been active for the past year and have observed customers moving from Bengaluru and other areas to Ahmedabad, indicating similar user behavior, the primary challenge will be on the owner's side and their mindset towards our platform,” he elaborates.

Citynect also plans to integrate AI technology into its online platform to provide real solutions and enhance the overall user experience. “Our major focus will continue to be on developing features that directly address real problems and make a significant impact on users' lifestyles,” Hemant added.