International property consultancy JLL India’s proprietary real estate technology investment vertical HAS made an investment in NCR-based Cloud1 Enterprises.
This is JLL’s second investment in the real estate technology space after its investment into Foyr.com in October 2016. Last year, JLL India formed a structured vertical to make proprietary investments into early-stage technology companies with the potential to disrupt the real estate business.
Cloud1 Enterprises is an end-to-end cloud based platform enabling corporates to deploy telematics technologies to bring efficiency to employee transportation, JLL said in a release. The company has not disclosed the investment amount.
“Estimated at $ 2 billion in India alone, the employee transportation sector is currently highly fragmented, inefficient and opaque. The potential for further optimization of company transportation costs via data analytics and telematics is phenomenal. Functionalities like mapping and routing have become basic features throughout the globe in this industry. Cloud1 will focus on data integration with traditional fleet management systems to convert telematics insights into fleet productivity,” said Anuj Nangpal, Head – India Real Estate Technology Ventures, JLL India.
Cloud1’s business model is not based on a high customer acquisition cost and corresponding burn rates as a result of deep discounting. Proprietary algorithms allow intelligent utilization of vehicles and real-time trip monitoring, which enables Cloud1 to squeeze ultimate efficiency out of the value chain and offer employers a dedicated trip based model.
“Adhering to global standards of compliance and transparency, Cloud1 – unlike other technology providers – has made up-front investments to tech-enable vehicles which are supported by a 24 x 7 Command Center. Our platform and solution completely de-risks our clients from having to invest in technology,” said Sumir Anand, Co-founder – Cloud1.
According to Anand, the grey area of employee transportation is one of the Indian industry’s biggest pain points. Cloud1 envisages a shift in this daily necessity – and the substantial operating expense it usually involves. “We have invested over 18 months in developing and perfecting the platform,” he added.
The current daily transportation cost per employee ranges between Rs 6,000 to 13,000 per month, and Cloud1 is confident that this figure can be reduced by at least 15%. In addition, up to 60% reduction can be realized in direct manpower deployed to service the organization’s transportation needs. Cloud1’s services can imply an overall saving of up to 20% towards this expense – while adding substantial safety and security for employees.
At current estimates, this could reflect an overall reduction in operational costs for the industry to the tune of Rs 1,200 – Rs 1,500 crores per year. Similarly, compliances that are invariably compromised or overlooked due to lack of real-time data are robustly assured with Cloud1, and employers can be confident that associated risks are mitigated through data analytics, the release said.