Hireavilla focuses on providing luxury villas on rents and has various properties across important tourist destinations in India. Founded by Saagar Panchal in 2016, Hireavilla has serviced over 2000 customers in a short span of time.
NewsBarons connected with the young entrepreneur ‘Saagar Panchal’ to understand his business model, business expansion across other geographies and plans to raise capital for the next growth phase.
NB: Brief us about your business model?
Saagar Panchal: Hireavilla is a full service vacation home rental startup, which is focused on standardizing vacation home rentals in India and to help people monetize from their property in idle time when they are not occupying it.
Our idea is to build a platform through which people can easily rent a private inaccessible space for example an private villa or an vacation home owned by individual or private yacht’s in the future, we want to build a platform through which this private spaces can be rented easily.
We want to convert underutilized real estate into comfortable vacation home and we will fulfill the needful service gap to make sure our guest will have an amazing experience at our vacation home’s, this model reduces build-out cost and time.
NB: What is your target in terms of bookings and in terms of customers?
Saagar Panchal: Our target for the upcoming year is a minimum of 2000 bookings and we are looking forward to cater more than 25,000 customers from various locations in our beautiful vacation homes.
NB: Which are the new places you are planning to expand?
Saagar Panchal: Our plan for next one year is to expand PAN india by starting our vacation home rentals in North Goa, Mukteshwar, Rishikesh, Manali, Kasauli, Kodaikanal, Jaipur, Udaipur, Coorg, North Goa, Alappuzha, Ooty, Nainital, Pondicherry.
NB: What is your revenue model?
Saagar Panchal: our business model has 4 sources of revenue
- Commission based model – where we charge a fixed percentage of commission per booking
- Minimum Guarantee of Business – in this model we help owners to monetize their property in idle time when they are not visiting their property which not only eliminates maintenance cost of the villa but also helps to earn an extra income, Based on the idle period we provide a minimum guarantee of business annually in exchange of exclusive rights to rent the property. This model is best suited for owners who visit their property frequently and would like to monetize from it in the idle time.
- Lease model – Best suited for owners who don’t visit their property and for them maintaining the villa is an overhead, in such cases we can long lease the property, maintain & upgrade the property at our own cost.
- JV model – This model is suggested for real estate developers, who have underutilized real estate’s we can help them turn their underutilized projects into an vacation home project in an joint venture by installing amenities and services at our own cost and developing the real estate as an comfortable vacation home with the help of our expertise.
NB: Your focus area going forward?Saagar Panchal: Currently our focus has been villa rentals in the vacation home sector but as we expand in the coming year we would also like to specialise in service apartments and hostel to cater guest’s of various budget and size. As a full service vacation home rental company we also want to focus on long term rentals and metro city short term rentals considering the current need of the market.
NB: Comment on your Capex plans?
Saagar Panchal: For our capital expenditure needs we are looking to raise funds in the near future to increase our inventory into various vacation home rental sectors and to standardize our services & amenities in our properties.
Our another major reason to raise fund is to build an efficient mobile application and platform which makes hiring vacation home rentals easier and to develops systems which can bring more transparency among vacation home owners, we are already into pipeline for developing them.