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Agencies & People

What next? Doorsteps to reveal update on financial status ‘very soon’

The online firm, which claims to be in the top 50 UK estate agencies by volume, says it will release an update on its latest development.

Nigel Lewis

doorsteps

Online estate agency Doorsteps is due to make an announcement about its financial status in the next few weeks.

This follows enquiries to the company by The Negotiator following the publication of its annual accounts for 2019 which show diminishing ‘cash at the bank’.

Upside Capital Ltd, the company behind Doorsteps, had £694,958 cash at the bank at the end of 2018 which reduced to £196,768 last year. Accounts for 2020 are not due yet.

Its founder, who has so far raised £1.4 million from investors via two crowdfunding efforts, says he cannot comment on the company’s financial position now.

In the past Doorsteps has presented as a considerable and rapid success story for its founder Akshay Rupernalia, which several newspapers have described as a ‘teen millionaire’.

Pre-money valuations

These claims were based on crowdfunding efforts in 2017 and 2018, which gave Doorsteps a ‘pre-money’ valuation of £12 million and £18 million respectively.

“Akshay says he is now on a mission to put traditional High Street estate agents out of business because they charge thousands of pounds in commission to sell a house – and he does it for just £99,” the Mirror said in 2017.

Rupernalia has told The Negotiator that an announcement would be made soon but that he was unable to comment further.

“However, despite the global atrocities of 2020, our performance was another consecutive improvement on the prior year, we’re glad to say,” he said.

Read more about Doorsteps.

January 12, 2021

4 comments

  1. This failed business model should be dumped by all and the get rich quick crowd should get a proper job. Its failed those who invested, its failed everyone!! Especially those gullible enough to pay upfront even before a first viewing, that’s of course if they ever got a viewing. The financial status will be embarrassingly awful.

  2. Online models do not seem able to get around the consistent cash burn, that has for many led to closure. If a traditional agent had raised 1.4M, from 2017, and used 200k to cold start seven branches, at a rate of two or three a year, then three of them would have repaid their start up capital in full, the third would do so in the next six, and the other two within 14 months.

    Instead, the realisation that you can not sell property for £100 or £500 as a sustainable model, usually hits online agents at the point the cash runs out. Online agents if they are to succeed must look to break even in 24 months, like all other agents, and from here look to generate gross profits at 18 to 28%, rather than being endless cash guzzlers.

    • Not sure I can fully agree online estate agents and high street agents are completely different business models and we need to stop comparing them. If you want to compare them in that way you need to class the local agent as a branch and with the low running cost that makes the branches profitable from virtually day one. Online target national housing market high street target local areas all completely different. If the high street was as profitable as you mention what happened to foxton just to name one truth is both online and high street as well as the growing independent agents are here to offer a choice to vendors and better competition. Keep providing the service you feel a vendor needs and they will decide

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