Startups hope better funding channels and easing ESOP taxation: Sunny Garg

Crib founder interview: Living in country’s urban centres is a dream of many who are looking out for a better lifestyle but under the glittering charisma of a smart city, there lies the challenge of finding a comfortable corner to live in. While technology is making the process easier for renting accommodations in crowded Indian cities, there are many aspects of the businesses which need to be automated and this is where Crib comes in. 

In an exclusive interview with Sunny Garg, the co-founder of Crib, a software solution that makes it easier to manage rental properties, Republic Business delved into the intricacies of Indian house hunting, the challenges faced by the industry, and what the startup space expects in the upcoming interim budget 2024.

Sharing the hopes of the industry from the upcoming Interim Budget 2024, Garg said, “The startup ecosystem in India is at a critical juncture, seeking essential support from the government in the upcoming interim budget. Anticipated measures include enhanced funding channels, tax incentives for research and development, and efforts to fortify the regulatory framework. Addressing ESOP taxation is vital, with a preference for taxing ESOPs at the point of share sale or transfer rather than upon exercise, alleviating liquidity concerns for employees.” 

“Additionally, aligning capital gains tax on the transfer of unlisted startup shares with listed shares is crucial. A budget addressing these aspects would catalyse growth, innovation, and resilience, nurturing the overall startup landscape in the country,” added Garg.

Solutions to common problems led to Crib

Sunny, who has a firsthand understanding of the challenges faced by property owners, having been a PG owner himself, shared insights into the genesis of Crib. "We understand the product because I have been a PG owner for years. I know the problems that we had to go through and what could solve them. We built by keeping the needs of the user in mind, and I am glad that it has worked well for us," he stated.

Highlighting the prevalent issues in the market, Sunny pointed out challenges such as rent collections, Aadhaar verification, providing community to the tenants, and effective complaint registration and management. These issues formed the basis for the inception of Crib, a platform aiming to streamline and simplify the property management process.

One of the major challenges faced during the initial stages was combining real estate with technology. Sunny admitted that being a non-tech background individual, he brought in a tech-savvy co-founder, Archit, to navigate through this complexity. 

"Combining real estate with technology was tough, but having a co-founder like Archit with a tech background proved instrumental in overcoming this challenge," Sunny explained.

Cash reliance created hesitation for digital tools

Addressing the industry's reliance on cash transactions, Sunny acknowledged the prevalent apprehension towards digital tools among business owners. However, he highlighted the need to embrace technology for the overall growth and efficiency of the industry.

Crib, primarily a service for landlords, operates on a subscription model that depends on the number of beds available for rent. Sunny underlined the role of his previous experience in running hostels, which played a crucial role in shaping the subscription model for Crib.

In the interview, he also touched upon the backing Crib received from industry stalwarts like Ghazal Alagh, Kunal Shah, Vijay Shekhar Sharma, and others. Sunny shared insights into the challenges of pitching the project to these influential figures, stating, "Looking for investors, they want a background - IIT, IIM, and have something done before. Storytelling and contributions from the co-founders in marketing, operations, and tech were vital in securing support."

From a broader perspective, Sunny noted a trend where people are shifting their trust from brands to individuals. He said that Crib, from a B2B brand perspective, focuses on the human element, portraying itself as more than just a service—it's about the people.

As Crib continues to expand its services, Sunny hinted at future plans such as entering the marketplace and finance sectors. Sunny told Republic Busines that the platform has successfully raised substantial funds, enabling its growth and development.