CHENNAI: How would you like to own a Harley Davidson bike or a special edition omega watch for a day? This and more is possible through sabrentkaro.com, which will start its operations by the third week of the new year in Chennai, after having a successful run in Hyderabad, Vishakapatnam, Bengaluru and Delhi. “It all started when my son wanted the latest Play Station. I asked him how long will he use it and he said a week, I refused it right away,” laughs Raj Sivaraju, Founder and CEO of the website. “He then came up with an idea that he would create a group with his friends, and post what he wants. I was surprised that it worked. He got the Play Station for a week, he enjoyed it and returned it.”
Raj has been in the IT industry for 25 years and in 2015 he started working on this project. It was launched early this year. “I realised that in the online market you either buy or sell; there is no other option. I wanted to create a space where people can go to fulfil their short term needs,” he says. “I roped in many retailers and also those who wish to rent their products when they are away on vacation. We have customers who visit the US for six months and during that time they give their car or scooter for rent.”
He made the initial investment in the company through bootstrapping his own savings and was later joined by friends and family members. “They are still my angel investors. Currently, we are in talks with multiple potential investors who can invest to a tune of five to 15 million dollars,” he explains. They operate in a ‘rent to own’ model and are in talks with NBFCs (Non Banking Financial Company) to have a continuous flow of funds.
The website has more than 1,000 registered customers and around 18,000 products online. “From books to luxury cars we have everything. The fast moving ones are the luxury products as most of our customers are youngsters,” he shares.
The team first posts a questionnaire to the customer and requires a copy of their ID proof, which is checked at the time of delivery of the products as well. An initial deposit is made which in case of any damage will not be returned. “I must admit that most our customers are from the elite class and they know how to maintain the things they borrow,” he adds. The team picks up the product, packages it and delivers it too. The product is insured as well.
Sabrentkaro can help you set up office or house by renting products for a particular period of time. When they first started off, they conducted a focus group and many were not open to the idea of giving their assets on rent. “Their main concern was who will pick up and drop the item. We looked into those concerns and we have a team to do that,” says Raj. They will be tying up with a few companies in Chennai. In a survey they did, they have got the pulse of the Chennai market.
“Believe it or not, more than vehicles, people here want computers and furniture. This was new to us too,” he says. Raj’s favourite quote is ‘why buy when you can rent’ and that’s exactly what they are focussing on. “We have a lot of migrant population as our customers and the demand to set up a house with rented products has grown. We help them with just a click. As most of them are millenials, they like to enjoy these luxury brands. We see to it that we satisfy them. Now that we know what Chennai wants, I am sure we’ll be a hit here too,” he says confidently.
Sabrentkaro has partnered with furniture manufacturers who set aside a certain percentage of their products for this purpose. “Many toys manufacturers and electronic bike makers want to partner with us. Even Samsung is in discussion with us for a national BYOD (Bring Your Own Device) model,” he shares.