Prime Venture Partners funded MyGate, a community management platform, aims to touch 20,000 gated communities next year and is increasing its team size and working on its distribution strategy to reach this number.
Vijay Arisetty, Abhishek Kumar and Shreyans Daga had three main reasons to set up MyGate, a community management platform. One, they saw that more people were coming to urban India for opportunities. “They didn’t have any known people in the city and staying in gated community was a good option for them,” recalls Arisetty. This got the team interested in this sector especially since there was a 12 per cent growth in the real estate gated community last year. Second, people now got so used to ecommerce as a result more number of footfall from strangers in the form of delivery staff resulting in higher traffic through these gated communities. “Gated communities never allow people inside and now they don’t have a choice but to let in unknown people given the technology shift and rise in online shopping,” adds he. Finally, there are almost 80 lakh security guards employed in gated communities, corporates, shops and so on and there was no technology available to assist them. The trio saw a potential in this close to US 20 billion dollar security industry and entered this space.
MyGate provides technology-forward solution for gated communities. It simplifies the daily lives of residents, managing committees and security personnel across the country by providing hassle-free community management, access and security. With the help of technology, MyGate aims to build trust amongst key stakeholders: security guards, residents & community visitors by providing real time information and reducing friction at all touchpoints.
The Growth Story
Incorporated in 2016, the company enables more than one million homes on its platform. Explaining their growth pace Arisetty says, “In June 2017, we added 3 to 4 new gated communities per month, June 2018 this number increased to 70 to 80 new gated communities a month, and in June 2019 we added 800 new gated communities.” The company currently manages over 4000 communities and is present in top 9 cities in India including Bengaluru, Pune, Hyderabad, Chennai, Cochin, Ahmedabad and Kolkata. It has validated over 200 million visits in these gated communities.
The company has recently raised US $56 million in series B funding. The investment comes from Chinese internet giant Tencent Holdings, US-based JS Capital LLC, Tiger Global Management alongside existing investor, Prime Venture Partners. It has earlier raised US $11.5 million over two rounds of funding.
“The team has established a process and system in place to activate training of the new security guard who takes charge.”
There is a lot of information exchange happening today with a large number of visitors entering gated communities. MyGate facilitates real time information to the users, whether they are at office, in India or outside India. The company doesn’t have any size parameters and believes that any community is their potential client. It is organising a lot of information with the use of technology to help the communities with their domestic need.
Everything comes with its own set of challenges. The success and failure of the product depends on the security guard using it. And it makes it more of a challenge as it is a high attrition industry. This apart, there is still the risk of poor telecom and internet facility. “The main gate from which they are operated may not get proper internet signal. We have identified ways to adapt that,” shares Arisetty.
The team has established a process and system in place to activate training of the new security guard who takes charge. This apart, the devices that are given to the security are heavy duty devices. “We have internal controls to monitor the device performance and the moment something goes wrong, our staff go to the locality and sort it out,” says he. An operationally intensive company, MyGate has a 600 member team that works 24/7 to ensure that the processes are up and running smoothly.
Commenting on the customer acquisition strategy, Arisetty says that it has remained the same from day one. The company has a strong emphasis on customer service. “We give a great service to all the stakeholders that our services spread through word of mouth,” says he.
The company’s revenue model is based on the number of devices required in a building and charges a subscription fee for the gate. “In simple math, it works out to close to Rs. 10 to rs. 12 per month per flat to use our services. We want to make our services affordable to everyone,” shares.
Where to from here
MyGate has recently launched a silent and secure delivery experience for its users. For this first-of-its-kind feature, MyGate has partnered with multiple e-commerce brands, including Swiggy, Zomato, Dunzo and Grofers.
“From 800 in 2019, the company aims to add 4000 new gates communities per month in a couple of months, ” shares Arisetty. The company is increasing its team size, working on distribution strategy and gearing up to add this number. It is making structural and fundamental change and more importantly, ensuring that it services clients properly. The company is building infrastructure to ensure that it continues to service its clients and touch 20,000 plus clients next year. “Imagine the kind of operational set up we need to have to make this successful. We are working on this,” shares he on a concluding note.
Photo Caption: Vijay Arisetty, CEO and Co-founders
Funding: Series A funding of US$8.8 million led by existing investors Prime Venture Partners.
Business Profile: MyGate provides technology-forward solution for gated communities. It simplifies the daily lives of residents, managing committees and security personnel across the country by providing hassle-free community management, access and security. With the help of technology, MyGate aims to build trust amongst key stakeholders: security guards, residents & community visitors by providing real time information and reducing friction at all touchpoints.