Finding a property to rent in Mumbai or Bangalore isn’t only about location or the monthly rent, but also the gigantic security deposit that one has to make. Rental deposits can set tenants back by lakhs of rupees with the unwritten rule of 10 months’ rent as security. And most often, in a bid to evade taxes, landlords ask for payments to be made in cash—be it rent or the security deposit. It was this pain-point that Mukesh Chandra Anchuri, along with colleague Anusha Kurupathi Parambil and classmate Muralidhar Nayak set out to solve when they set up Paymatrix in November 2015. “One of us faced a unique problem of arranging a lumpsum amount of money to pay rental deposit to a landlord in Mumbai. It made us wonder why one cannot leverage the credit card to pay the security deposit. It propelled us to deep dive into the inefficient and untapped property rental market wherein most of the transactions were still in cash,” said Anchuri, CEO, Paymatrix.”
Today, the start-up has developed a digital rent management system, by which it is looking to disrupt the $4-billion rental property market by resolving the pain-points of tenants and landlords by formalising the rent management system in the country. An analytics-driven property rental management platform, Paymatrix’s dashboard provides solutions for end-to-end rent management including tenant screening, credit facilitation for rent deposits, rent documentation, rent automation, tenants’ and landlords’ insurance, and also better interaction between tenants and landlords. Incubated at T-Hub, the incubator run by the Telangana government and a part of Nasscom 10000 Startups programme, Paymatrix is working with Axis Bank on creating credit products for rent management.
It also got selected for the fifth batch of PayPal’s India Incubation programme. “We have templates of the rent agreement online where the landlord has to fill in the required details and that of tenants. They just have to pay the stamp duty online and we get the document franked, authenticated and then deliver it to their doorstep,” Anchuri says. And in states such as Karnataka, the start-up is working to leverage e-payment of stamp duty. Paymatrix offers a profiling service where a check is run on the tenant in terms of an identity, credit and psychometric analysis. “We charge `150 per tenant and give a comprehensive report based on 182 parameters so the landlord knows whom they are renting the house to,” says Anusha Kurupathi Parambil, CMO, Paymatrix.
Paymatrix caters to 6,000 landlords and tenants and has more than 2,500 properties registered on the platform. Its services are available in more than 10 cities. Paymatrix also has a business-to-business model where it provides its services to commercial and co-working spaces. It manages rental payments for its incubator T-Hub and manages rental collections for several property management players in Hyderabad and Bangalore. In November 2016, Paymatrix raised funding of an undisclosed amount from Xseed Partners. It is currently seeking funding of $500,000 for expansion in India and to chart an entry into international markets.