What are the results for fiscal year 2021 and what are the projects in 2022 for Les Agences de Papa?

by Christian Captain | The | Independent real estate agency

In an interview with ImmoMatin, Frederic Ibánez, co-founder of Agences de Papa, commented on the results of 2021, at the end of which the structure saw sales of 300,000 euros and losses of 7.5 million euros. He reaffirms, in our columns, the feasibility of his model and reveals the content and goal of his new project: to build a real estate ecosystem in the Metaverse region that should see the light of day in September 2022.

Frédéric Ibáñez and Nicolas Frattini, founders of the company. – © d

In the second half of 2021, it generated sales of 249,000 euros. How do you judge this report?

If we look at the whole year, 2021, in the first half, was marked by the creation of the company, and in particular our communication tools. We started delivering results from the second half, which featured a fivefold increase in our revenue compared to the January-June 2021 period.

For the first part of 2022, we’re anchored – that’s what we’ve announced to the market – on the same upward curve, because we’re dependent on an expected 500% increase in our sales, and that’s on sales only.

At the end of 2022, our goal was as follows: to achieve 1.5 million euros in sales, that is, 750 real estate sales were carried out.

As a reminder, our roadmap for 2021 was as follows: Creating the company so that we can later develop all our related products, whether it is rent, credit or operating our database and launch the Web 3.0 project, which embodies the company as a new spearhead.

So we’re part of the dynamic that we planned to follow, which is to install, as required in the startup model, on an upward curve so that we can raise the funds. Because investors, what they’re looking at is the company’s ambition. That is why our investors are so satisfied that they continue to follow us, such as the Holmarcom Group, which recently invested €2 million in Les Agensis de Papa.

The company, for the same fiscal year 2021, has debts of up to 7.5 million euros. When will Les Agences de Papa be profitable?

It is still difficult, today, to talk about the break-even point (the break-even point, editor’s note). When you advance in this way relative to the market, the impact on price can be significant. But what we can say is that the losses that we accumulated last year were the result of marketing and were in line with and consistent with what we announced to our shareholders.

The beginning of the project Les Agences de Papa was clear: to gain fame. And yet, 20% of the French know us, according to a study by Kantar. We now have a voice with a well-known company name. This now allows us to move forward on technical topics, and even more on the digitization side.

The profitability of the company will come. But today we remain firmly in the investment phase. And let’s also specify that, compared to 2021, we have 50% less cash burn than in 2021.

How do you respond to real estate professionals who claim that your model is still unprofitable?

I answer them this: Our model, you did not understand it. “We are not a real estate agency. We are not a sophisticated agency in franchising. Our model is an asset light, from the platform.

Baba agencies, for example, do not have a tag. If you take the example of Amazon – and all things considered, of course – it also does not have points of sale, even though it is the largest seller in the world.

In the real estate market, I am convinced that we are going to change the game: we did it in terms of price, and then in terms of digitization. Admittedly, many professionals are complaining that we attacked the market with a solid offer, but many professionals are joining us, and many will have an interest in being a part of our Web 3.0.

What about your dates for 2021?

In the first half of 2021, we barely won 300. In proof of our growing strength, in the second half of 2021, we signed over 2,800 mandates. Also knowing that we’ve been improving our conversion rate over the weeks: while it was minuscule at our launch, 2%, moreover, all digital real estate players are at 100%, it’s now down to 12% for us. So the increase is strong, which indicates public support for our model.

Can we call up the services that are included in your service, ie the amount of 2000 euros?

In this offer, everything is included: placing the product on the Internet, creating and publishing an advertisement, organizing visits if the owner wishes. And then these visits will be supported by a startup company, Flatsy. But in most cases, the owner himself wants to take over these visits and receive the customer.

Other services included in our service for 2000 euros – the amount of which has not changed since our launch: file configuration, which is automated, as well as posting ads on portals.

It advertises scaling your solutions, which it calls “related products”. What is it about?

Our goal now is to develop our Related Products. And by related products, we mean, on the one hand, credit: at this point we will soon launch a financing offer with a partner.

Other related products: the whole picture part, then insurance and finally rent. With regard to this last supply, the goal is to make up our inventory, that is, a stock of several thousand goods to begin to influence the level of supply. In the same way we have built our inventory of properties for sale, we have adopted the same strategy of building an inventory of properties for rent since October 2021.

On April 19, I announced the upcoming launch of your property ecosystem in the Metaverse area. What is its content and purpose?

The metaverse, to use simple words, is the link between the real and the unreal. It is the possibility of entering a virtual place in the near future by means of an avatar and access to a product.

Returning to the real estate world, it is possible, to be more realistic, to imagine a software for a real estate developer that will be built in 3D reality in the form of dad agencies.

Thus, our metaverse would be a clone of the real world. The goal is as follows: that people who go there be able to visit the properties of our partners and communicate, through their avatar, with the owners.

This tool, which will be operational by September 2022, will be a social network and a solution for conducting visits. It will indeed ensure the connection between the virtual world and the real world.

How did you fund this project?

In addition to relying on funding of €2 million from Holmarcom (the entry into the capital of the Agences de Papa capital of the Moroccan group was formalized on January 27, 2022, editor’s note), we have implemented an ICO (Cryptocurrency Fundraising), knowing that The amount of the ICO will not fund the entire project.

We are convinced that the metaverse is the drug of tomorrow. Credit borrowing rates will increase further, and thus margins will shrink. What are the main mechanisms that will be affected? No doubt about agency fees.

We’re moving toward a world where consumers want to save money, and platforms like the metaverse, which open the way more to negotiation between buyer and seller, will have their place here.

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