Home renovation and construction in India is a tough business, given the unorganized nature of the industry. Every step, from ideation to completion, requires precise planning and execution.
, a Hyderabad-based startup, aims to simplify the process of building and renovating a home through a range of end-to-end construction services. The startup, incorporated by Sripad Nandiraj (founder and CEO) and Rohan Reddy (COO), started its activities in 2019.
how it started
Sripad and Rohan were old classmates. For a long time, they had been looking to build a business that would make life easier. An opportunity presented itself in 2013, when Rohan and his family were looking to renovate their home. Sripad and Rohan met to assess the construction market, the raw materials needed and the suppliers involved.
It was then that they realized that no company offered quick and easy construction solutions with all the required elements such as labor, raw materials and other resources. This is how the idea of a company was born that would simplify the construction process by bringing together all the entities involved in building a house.
Sripad and Rohan took a leap of faith and quit their full-time jobs to launch “Hocomoco,” which later gave way to the name “Wehouse” for better brand recall.
Wehouse is a technology-based aggregation platform that allows customers to build their home from the ground up by connecting them with people in the construction industry.
It offers a range of services for residential construction – project management, architectural structure, design, decoration and smart home interiors and legal permits.
The start-up process involves determining customer needs and cost, setting up meetings, implementing tasks, follow-up and final delivery.
Wehouse has partnered with construction industry brands to ensure a streamlined flow of resources throughout the supply chain. It has partnered with approximately 1,000 building material suppliers.
Sripad says the company operates on the four-pronged mantra of transparency, time-saving, tracking and technology adoption. “This helps maintain exceptional project quality and on-time project delivery.”
The founder says the startup makes a plan with a proper schedule and labor estimate ahead of time, so the project is completed on time.
Role of technology
Technology frameworks and web services play a crucial role in the areas of customer management, hardware management, and vendor management.
“With the help of technology, we avoid manual errors and ensure that we save time and money. The supply chain is also simplified, which means no waste of material and an efficient use of natural resources. “says Sripad.
Transparency and monitoring
Wehouse provides an electronic monitoring function that allows customers to check the progress of their work and the amount of material used online. It also assures the client of a secure project site with surveillance to prevent theft and damage and informs clients through photos and videos of work in progress.
“We ensure that our clients have access to all documentation, on-site CCTV and detailed weekly reports. Clients can easily communicate with all teams such as design, project management and finance. They can also use the Q&A feature on our platform to understand the progress of the project,” says Sripad.
Every project Wehouse assists with goes through more than 200 quality checks; there are quality sieves at each checkpoint, explains the founder. For example, cubes cast into slabs are sent to a laboratory to assess their strength.
Projects in Hyderabad and Chennai
The startup has completed over 200 projects in Hyderabad and over 400 projects are ongoing in Hyderabad and Chennai.
The company says it has completed 1 million square feet of built-up area to date. According to the founder, the Wehouse platform records an attendance of more than 75,000 monthly visitors.
In August 2022, Wehouse expanded into Chennai with the aim of acquiring a built-up area of five lakh square feet by March 2023. The startup claims to have around 120 projects in the city.
Construction project management contributes 50% of Wehouse’s revenue, while materials management contributes 30% and interior design projects contribute 20%.
The startup charges Rs 1,599 per square foot in Hyderabad and Rs 1,900 per square foot in Chennai, based on labor costs, material costs and land prices.
Each time a customer selects materials through Wehouse, the startup receives a commission from the building materials company.
Wehouse says it saw revenue growth of 295% in fiscal year 2019-20, 482% in fiscal year 2020-21 and 363% in fiscal year 2021-22. It forecasts revenue of Rs 120 crore by the end of this year, with growth of 620%.
According to GlobalData, the Indian construction market was valued at $609.6 billion in 2021 and is expected to grow at an average annual growth rate of over 6% between 2023 and 2026.
The home building services industry has many players such as RHUMBIX,and .
Financing and expansion
The founders of Wehouse had invested Rs 5 lakh of their personal savings to start the startup.
In May 2022, Wehouse secured $1 million in a pre-series round of Anthill Ventures and a group of angel investors to upgrade its technology platform, hire and grow. The startup plans to close another round of funding soon.
The startup plans to expand its operations to five more cities and the size of its team by adding 100 employees. It also plans to forge strategic partnerships with 500 partners by March 2023.