South African startup investRand offers a user-friendly marketplace that connects property investors to profitable real estate investments, vetted service providers and financing options.
investRand was formed after Ezra Rasethe, the founder and CEO, purchased his first investment property, and identified a need for a streamlined investment process. He teamed up with Francois van der Merwe, CTO and advisor, to build the platform.
“The gap identified by investRand was the complexity and inaccessibility of real estate investing for everyday people, and the difficulty in finding credible service providers,” Rasethe said.
investRand, which also enables faster property sales to qualified investors for sellers and agents, essentially enables a new way of living, Rasethe said.
“Our median client is a 33-year-old, and about half of them are first-time investors. investRand attracts a new type of millennial investor who has to choose between buying a home, or renting in a better neighbourhood that gives them access to better amenities. Their conclusion is to rent where they live, and own what they rent to the next person, and make an income.”
A new way of living, then, and one that has caught on. Since launching its marketplace in March 2023, investRand has acquired over 1,000 users, with 60 per cent of customers being repeat clients.
“This demonstrates significant traction and positive customer engagement within a relatively short time frame,” said Rasethe.
investRand funded itself by generating sales as a bootstrapped startup.
“I always say I learned about the idea of startup “runway” from other startup founders while I was already in business, covering my expenses, and the company has been profitable since its inception,” said Rasethe.
The startup operates in the South African market, with investment criteria and a model that also fits properties in Africa, Australia and the United States.
“There’s an indication that the economic conditions are favourable for investRand to thrive in these regions, and a demographic of people who are looking for the solutions our marketplace offers suggests potential future expansion,” Rasethe said.
investRand’s business model includes charging five per cent of the property value, or a minimum of ZAR30,000 (US$1,500) on each transaction, whichever is higher.
“In the first year, we did over ZAR1 million (US$52,000) in sales with no advertising, in the second year, we almost doubled that and are profitable,” said Rasethe.
Early on, investRand realised there was no streamlined process for ordinary people to build wealth through property investing.
“Additionally, it was difficult to determine the credibility of service providers online, which further complicated the investment process for newcomers,” said Rasethe.
“We had to understand the customer deeply and intimately before building the technology because we were focused on building something that our customers wanted and would love to recommend to their friends. We came to the conclusion that we cannot just use technology to empower every ordinary South African family to invest in income-generating investment properties. We need to also support our clients with quality education, reliable information and impactful resources in order for them to build and grow their wealth in real estate for themselves and their families.”
