Justo Realfintech
- Justo Realfintech is coming out with an initial public offering (IPO) of 49,61,000 equity shares in a price band of Rs 120-127 per equity share.
- The issue will open on September 24, 2025 and will close on September 26, 2025.
- The shares will be listed on SME Platform of BSE.
- The face value of the share is Rs 10 and is priced 12.0 times of its face value on the lower side and 12.7 times on the higher side.
- Book running lead manager to the issue is Vivro Financial Services.
- Compliance Officer for the issue is Jyoti Bala Soni.
Profile of the company
The company is a full-service real estate mandate company based in Maharashtra, with operations in Pune, Mumbai Metropolitan Region (MMR), and Nashik, with additional presence in Aurangabad and Kolhapur. It provides solutions including decisions on pricing and sizing of the projects to real estate developers and enabling the delivery of the products to the end customers. It has established a considerable presence in Pune and is rapidly expanding its footprint in Mumbai. It distinguishes itself through its tech-enabled platforms that streamlines project onboarding, customer engagement and sales processes. Leveraging data-driven insights and digital tools, the company ensures enhanced visibility and conversion for its real estate developer partners. With a wide-reaching channel partner (CP) network and deep understanding of local market dynamics in which it operates, it offers end-to-end solutions across sales strategy, marketing, and execution.
Its role involves efficiently managing multiple aspects of the inventory of real estate developers and realizing through a large network of over 3,400 channel partners. It primarily works with a focused niche of real estate developers who primarily operate in the lower-to-mid segment residential and commercial developments. It also assists in arranging credit arrangements for their acquisition, construction and development from banks, NBFCs and other financial institutions.
Its business model focuses on providing services which include but are not limited to providing comprehensive advisory and execution services across business and sales strategy, marketing, CRM and financing solutions. Its endeavour is to take over and manage the end-to-end customer journey for real estate purchases from the initial inquiry stage to the final transaction while freeing up the resources of real estate developers to focus on their core competence i.e., obtaining statutory approvals and property development. This approach and service model is a novel proposition where the developer can completely concentrate on their core competencies, thereby building scale and faster growth in their area of operations.
Proceed is being used for:
- Meeting the long-term working capital requirements
- Funding investment in development of software and technological platform
- Repayment, in full or in part, of certain borrowings availed by the company
- General Corporate Purposes
Industry Overview
The real estate mandate industry is relatively nascent in India. Xanadu, Anarock, Guardians and JUSTO are the key organized mandate players in the industry. Xanadu was the first to begin operations in 2015, followed by Guardians in 2016, Anarock in 2017 and JUSTO in 2019. The mandate industry is well-established in Mumbai, Pune and Bengaluru. Apart from the organized players, numerous small players have mushroomed in every nook and corner of these cities – most of whom are ex-brokers and Ex employees of the above mandate firms. Small players keep on coming and going, but the big 4 have been consolidating their position. They together constitute roughly 80% of the real estate mandate industry in the 3 metros.
The mandate business is currently concentrated in the Mumbai Metropolitan Region and Pune, with minimal presence in other markets. In 2024, the combined market of Mumbai and Pune generated sales worth Rs 2.6 lakh crore, with 80% of the supply value coming from the segment between Rs 30 lakh and Rs 5 crore, where mandate players are dominant. As of 2024, the top four mandate players collectively generated Rs 27,631 crore in business, indicating an 11% market penetration. This is projected to increase to 17% (Rs 45,747 crore) by 2027. In 2024, the real estate market was largely focused on the luxury segment, but a shift toward the mid-segment is expected in the coming years. This trend benefits the mandate business, as the shift to the mid-segment aligns with their core focus.
The forecast shows despite stagnant growth in overall sales value in these markets, mandate business has the potential to grow at 18% CAGR from 2024 to 2027. The growth is driven by the expanding focus segment (Rs 30 lakhs to Rs 5 crore) and a growing interest from large and mid-level developers in adopting the solutions offered. The industry is becoming increasingly professional and competitive, creating a need for financial prudence, which requires skilled professionals. The mandate business model has proven to be cost-effective and efficient in recent times.
Pros and strengths
Strong and extensive network of Channel Partners: Channel partners are essential intermediaries, bridging the gap between developers and end customers. At Justo, it has built a strong and dynamic network of channel partners. CPs help it achieves shared business objectives and fuel its sales activities. Its extensive network of over 3,400 CPs serves as the backbone of its mandate business, acting as the primary customer touchpoint and assisting in the lead generation process. CPs act as a vital link between the company and potential buyers, ensuring a steady inflow of prospects based on their market insights and local level understanding of project and customer needs.
Custom-built integrated technology platform driving operational excellence: Its technology platforms are a pivotal strength of its business, enabling it to streamline processes, enhance transparency, and deliver desirable outcomes for its projects. By integrating its custom-built proprietary technology platforms into its operations, it empowers real estate developers, channel partners, and internal teams with tools designed to make the marketing, sales and customer engagement efforts more efficient and effective. Its core technology frameworks include JustoVerse and JustoWorks, which are custom-built proprietary platforms that seamlessly integrate with its business model to optimize workflows and drive efficiency. JustoVerse serves as a dynamic workflow management solution tailored to the needs of its extensive CP network.
Marketing and sales expertise supported by operational efficiency: It has a proven track record of marketing and sales efficiency in the real estate mandate sector, particularly in Pune and MMR. Its deep understanding of local and micro markets, the ability to craft tailored strategies for real estate developers in assisting them make decisions related to pricing and sizing of their projects as well as enabling delivery of real estate inventory to end customers have resulted in successful project outcomes for its clients, channel partners and the company.
Risks and concerns
Depends on limited number of clients: It derives a significant portion of its revenues from a limited number of clients. The company’s revenue from its top 10 customers accounted for 53.79% in FY 2024-25, 65.31% in FY 2023–24, and 56.48% in FY 2022–23. It might continue to derive a material portion of its revenues from its key clients. While the composition and mix of its top 1, top 5 and top 10 clients keep changing from year to year, if any or all of its key customers cease doing business or substantially reduce their dealings with the company, its revenues could decline, which may have a material adverse effect on its business, results of operations, cash flows and financial condition.
Relies heavily on channel partners: It relies on Channel Partners to provide its services to customers. Any delay in payment of commission fees from the developers to the channel partners can result in a loss of confidence, leading to the discontinuation of their collaboration with it. This disruption can adversely affect its ability to deliver sales targets to developers, consequently impacting its revenue and profits. If its key Channel Partners discontinue working with it for any reason, it can adversely impact its ability to sell properties within the stipulated time.
Geographic market constraints: It may expand its operations into new geographical locations, including Tier 1 and Tier 2 cities, where it has limited or no prior business experience. Entering new markets presents various challenges, including competition from established local players, difficulties in securing suitable business opportunities, and potential regulatory and operational hurdles. There is no assurance that it expansions efforts will be successful, and any failure to establish a foothold in these new locations could result in increased costs, operational inefficiencies, and a diversion of management’s time and resources. Failure to establish a strong presence or secure business opportunities in these areas could result in increased costs, resource allocation challenges, and competitive pressures.
Outlook
The company is a technology driven real estate service organisation collaborating with developers to facilitate & help developers in developing strategy and executing the marketing, sales, digital, home loans and CRM actionable for various real estate projects. The company develops strategy, positioning and the thought for executing sales, promotion and marketing activities for various developers. With the help of technology and customer centric approach it strives to improve efficiency, quality, market access, delivery timelines and customer experience for every stakeholder in the real estate value chain. On the concern side, it faces significant competition within the real estate mandate industry from Indian companies and local brokers. This competitive landscape may adversely affect its service pricing, profitability, and its capacity to secure new mandates, as well as increase in the costs associated with growing its customer base.
The company is coming out with a maiden IPO of 49,61,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 120-127 per equity share. The aggregate size of the offer is around Rs 59.53 crore to Rs 63.00 crore based on lower and upper price band respectively. On performance front, its revenue from operations increased by 37.00% from Rs 5,938.28 lakh in financial year ended March 31, 2024, to Rs 8,135.19 lakh in financial year ended March 31, 2025. The profit after tax increased from Rs 669.44 lakh in the financial year ended March 31, 2024, to Rs 1,521.13 lakh for financial year ended March 31, 2025.
Meanwhile, its custom-built proprietary tech platforms, JustoVerse and JustoWorks, plays a pivotal role in its business operations. Its existing tech stack is equipped to capture real-time data of all the walk-in customers across all its sites. It intends to introduce performance-monitoring applications, such as MIS dashboards, to provide real-time insights into project and team performance for developers and internal stakeholders. It aims to integrate advanced analytics, artificial intelligence, machine learning and augmented reality features to offer immersive property buying experiences and improve decision-making for end buyers of real estate inventories.
