Magicbricks to raise AI integration in products, eyes IPO in 2-3 years

Real estate platform Magicbricks, profitable for four years, plans an IPO in 2-3 years while expanding AI integration across products and growing home loans and interiors services

Magicbricks is eyeing a public listing in the next two to three years. The company is building out its home loans distribution business and is equally focusing on getting traction for its home interiors business — both of which are large areas of interest and spending for consumers.  

 

“We have been profitable for four years now and remain cash-flow positive,” said Chief Executive Officer Sudhir Pai in a video interaction. “A listing is possible in two to three years as our growth segments mature further."

 

The real estate platform said it plans to leverage its profitability to continue breakthroughs via artificial intelligence (AI) innovation, which it has been investing in. It intends to continue raising the bar for its adjacent services, including site visits, home loans, home interiors and legal support, for which demand has been increasing, Pai said.

 

“We are actively integrating AI into various workflows. The first phase is focused on productivity and quality enhancements internally. We have achieved significant improvements in listing moderation and document summarisation,” said Pai, noting that consumer-facing AI will begin to have an impact on listing verifications and smart recommendation engines.

 

Amid a real estate market boom over the last couple of years, the company has evolved into a full-stack platform, offering not only search and discovery, but also integrated services including site visits, home loans, home interiors, legal support, and property valuations.

 

“The Indian real estate market has seen transaction momentum and price escalation — average prices are up 24% this year; demand rose 9%. We have expanded to meet these needs with Magic Homes, our dedicated section for developer listings,” Pai explained.

 

Having launched Magic Homes, a section dedicated to homes under construction by developers, the company is looking to improve the segment for home buyers, Pai said.

 

He cautioned, however, that affordability was becoming a concern and may be a drag on demand sentiment. “India's price-to-income ratio is now above 7, compared to a global average of 5. Supply constraints at affordable price points are mounting," he said. 

 

A higher price-to-income ratio indicates a higher pace of rise in rentals, possibly leading to outpricing customers and pushing them towards housing with more expensive rentals.

 

Magicbricks, which has investments from media house The Times Group, is also growing its home interiors offering nationwide with an aggregator model, matching shifting consumer interest toward premium, centrally located, and larger homes since the pandemic.