What are Kalise’s goals after raising 20 million euros?

Christian Captain | in | News

With the announcement of a €20 million fundraiser from Vilavi Group, Kaliz, the rental management platform, sums up its new ambitions. And recalls the basics of its model, which is largely geared towards real estate professionals. Interview with CEO Olivier Duverdier.

Jeremy Girard and Olivier Duverdier, co-founders of Kaliz – © DR

Can you remember the essence of Kaliz’s activities and tell us if your offer has changed since your inception?

Since launching in March 2020, our business has been the management and rental of residential and tertiary properties. As for the evolution of our offer, since autumn 2021 we have significantly accelerated marketing in BtoBtoC, i.e. through professional partners: real estate agents, agent network, asset management consultants and platforms. .

How are BtoBtoC relationships built with these real estate professionals?

He works with players who are not in the real estate management profession and who interact with rental investor clients, either in the process of building their assets or have already built them. So, as part of their journey to sell, support, or secure their owner-rental clients, they promote Kaliz and help us sign rental management mandates.

With these professionals, we rely on several forms of partnership: on the one hand, through the classic partnership, which obliges us to pay a commission to those who refer us (thus we share the commission with them); on the other hand, up to cooperation with larger partners. In such cases, these players, often quite large ones, ask us to integrate our solution as a “white label” into their brand environment. Thus, we produce a service for them, which is accompanied by a technological platform and a management team.

What does Kaliz weigh in terms of the number of lots and clients it manages?

To date, we manage just over 2,700 lots throughout the territory on behalf of several thousand owners. This amounts to approximately €500 million in assets under management and €20 million in annual rent collected on their behalf.

How is your model more effective than the one used by other participants in the rental management market?

I see several points of differentiation. Firstly, we are the only newcomers to the rental management market who have created their own management platform. This allowed us, on the one hand, to rethink the rental management business, and then simplify its stages. And, finally, to automate the processing of a number of operations performed manually by traditional players.

We broke down the 76 business processes we analyzed to see if they could run on a more automated platform. In this way, Kaliz allows professionals to increase efficiency and productivity.

The second element of difference is that at Kaliz we worked hard on the user interface. The result: all stakeholders, i.e. our managers, landlords, tenants and foremen, have access to the same platform, albeit with different perspectives. This allows us to provide everyone with real-time information as well as performance metrics such as profitability levels, number of vacations, or even the progress of the rental process.

In terms of prices, are yours more competitive than those offered by traditional real estate agencies?

For a landlord, we are on average 30-40% cheaper than a real estate agency. Our model is that if a real estate agency takes on this job of managing a small portfolio, it will pay off at best; if it is bigger and well organized, it will get 10 or 15 profit points at the end of the process. And if she works with us, then not only will she have a higher margin, but in addition, she will not have to worry about any operations: instruction set, software purchases, etc.

How many real estate professionals do you work with and what are your growth goals?

To date, we have over a hundred active partner real estate agencies, and we work with approximately fifty asset management consultants, all in seven months of operation. In terms of our goals, we aim to manage more than 50,000 parties over the next five years, three-quarters of which are indirect.

You claim that the funding round you just completed will enable you to implement your external growth plan. For which types of operators will these takeovers take place?

We are adventurers looking to acquire portfolios or structures that complement our geographic footprint or give us access to a category of clients we find interesting. To sum up, we have begun the process of analyzing the possibilities of acquiring a number of players in the rental management industry. We are unable to name names at this time. This will have to wait until the summer of 2022.

You have just raised 20 million euros from the Vilavi group. How did you convince him to accompany you?

I believe that we have had a number of significant demonstrations and, no doubt, more powerful than other new entrants in the market. Firstly, due to our ability to create reliable and efficient technologies. Secondly, to attract customers to BtoC at rates never seen before by these new entrants. And thirdly, our ability to demonstrate convincingly in the BtoBtoC market. All this combined with the entrepreneurial profile of the two co-founders of the company, combined with the originality of our positioning and the great potential it represents.

What are the main goals you set for yourself after this fundraising?

There are three. 1/ Continue to grow BtoC and BtoBtoC organically, which means hiring sales staff and managers: we currently have 33 employees, but we will soon launch a recruitment plan aimed at hiring fifty new ones during 2022.

2/ Complete the development of the technological platform and all its functionality to fully cover (and we are close to this!) rental and management.

3/ Purchasing portfolios to move faster and continue to consolidate the size of the managed portfolio.

Today we manage real estate throughout France, with a third of our portfolio located in Paris and Ile-de-France, and the remaining two-thirds in major cities of the country. We will of course continue our development in our two main regions, Ile de France and Occitania, but we are also looking for opportunities in major cities such as Nantes, Bordeaux, Lyon, Strasbourg and Lille.

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