Anushruti Singh
The Indian rental market, especially in metropolitan cities like Bengaluru, has long been a challenging space for tenants. A recent tweet by Bengaluru-based Harnidh Kaur expressing her frustration at being asked to pay a deposit of ₹5 lakhs for a flat with a rent of only ₹40,000, has brought this issue to the fore. Her post on X (formerly Twitter) sparked widespread debate online.
While some defended landlords, emphasising the amenities provided, others sympathised with tenants burdened by such high deposits. This debate highlights a pressing issue in India’s rental ecosystem: the need for an alternative to security deposits.
This is exactly what CirclePe, a Gurgaon-based fintech start-up, is solving. Ankur Yadav and Navan Jaiswal, the Co-founders of CirclePe, have developed an innovative zero-deposit model that benefits both tenants and landlords.
How CirclePe is changing the rental landscape
CirclePe operates as a membership-based club that allows tenants to move into their chosen rental homes without paying a hefty security deposit.
“Unlike other platforms that focus on helping tenants find properties, our aim is to eliminate the burden of hefty security deposits altogether. Tenants can find their property via any broker or website and then connect us with their landlords. We handle the rest,” says Ankur Yadav.
The tenant can choose any rental property through the traditional means, and once they finalise a home, CirclePe steps in to handle the security deposit and related processes.
The process is simple:
- Tenants sign up with CirclePe.
- They finalise a rental property through any source—online or offline.
- CirclePe steps in, paying landlords the entire lease rent (9-11 months) upfront, along with a company-backed guarantee to cover any potential damages.
“We’re tackling a problem that has remained unsolved for decades. In India, cash is still king, and rather than attempting an insurance solution, we provide landlords with cash in advance for the lease term, along with a guarantee to cover any potential damages,” says Navan Jaiswal. This model not only simplifies the tenant’s experience but also gives landlords a reliable, cash-backed guarantee, ensuring that both sides benefit.
This model ensures that tenants retain their savings, while landlords enjoy the assurance of timely payments and property management services.
Inspiration behind CirclePe
The idea for CirclePe stemmed from the co-founders’ firsthand experiences of the rental market. “When I moved to Bengaluru for work, I was shocked by the deposits demanded,” Navan recalls, adding, “It’s a cash-first market, and young professionals often struggle to manage such high upfront costs.”
Living in rented homes over the past eight years, they repeatedly faced the pain of paying substantial security deposits up front. The frustration didn’t end there – getting these deposits back often meant dealing with landlords who imposed unfair or unreasonable deductions.
Their lived experience helped them to recognise the need for a solution. “The process of dealing with hefty security deposits and then recovering them without arbitrary deductions was frustrating. That’s when the idea for CirclePe was born,” Yadav elaborates.
Together, they envisioned a solution that would simplify renting, eliminate burdensome deposits, foster a rental ecosystem based on trust and efficiency, and disrupt the rental ecosystem.
Tackling cash-first market challenges
One of the unique aspects of CirclePe is its ability to work within India’s cash-heavy rental market. Unlike previous attempts that relied on insurance-based models, CirclePe addresses the problem with cash.
“We enable the landlord to receive the full lease rent upfront, which they can utilise immediately, and offer a company guarantee for damages. This creates a win-win situation for all the parties involved,” Jaiswal elaborates.
Also, CirclePe’s platform leverages advanced technology to streamline processes. Tenants can become members in just 30 seconds, thanks to a rule engine that evaluates key metrics like a tenant’s CIBIL, provident fund, occupation, salary, any address changes, credit products availed and many others.
“Our tech ensures that only trustworthy tenants gain access to the zero-deposit solution,” Yadav emphasises.
Building trust in a sceptical market
While the solution is innovative, the founders admit that they had to face their fair share of challenges while implementing it.
The major challenge that they dealt with was building the right technology to make it a seamless journey for the landlords and tenants while ensuring that the solution was RBI compliant in all ways.
“The entrepreneurial journey has been a very enriching experience for us,” says Jaiswal. “We have to comply by a whole set of rules for the good of the sector, but we have been lucky enough to navigate through all of them with the help of a strong compliance and legal team,” he adds.
However, with so many technological solutions in the market, building trust among consumers is another challenge that the start-up had to face.
“Introducing CirclePe is like introducing UPI for the first time,” says Yadav. “Though the utility and the value addition are very high, initially, people find the product too good to be true. Hence, establishing trust is very important. However, just like UPI has changed the flow of money over the years, I am confident that CirclePe’s model will change how renting has worked for centuries. Its adoption will require people to let go of their preconceived notions, which will be a by-product of product adoption and awareness,” he adds.
The market’s response has validated CirclePe’s approach. By working alongside discovery proptech platforms and launching unique marketing campaigns, CirclePe has quickly gained traction and visibility.
CirclePe’s impact is best illustrated through its users. One notable example is a young Chartered Accountant who recently moved to Bengaluru for her first job in a Big 4 accounting firm.
“Though she had a stable income, the initial costs of relocating to a new city were overwhelming. With CirclePe, she avoided a hefty deposit, enabling her to focus on settling into her new role without financial stress,” says Yadav.
Scaling to ₹100 crores and beyond
Currently, CirclePe generates revenue through a 7 per cent membership fee, shared between tenants and landlords. According to Jaiswal and Yadav, their start-up is financially strong, having raised $1 million in equity funding, with additional investments from the founders.
CirclePe has already disbursed ₹5 crores in advance rentals and is now aiming to scale to ₹100 crores by 2025. “We are working on two strategies; one is creating more awareness about the product. For this we are doing unique marketing campaigns. The other strategy we are working on is partnering with discovery proptech platforms. Our vision is to revolutionise renting in India. We want to help more tenants and landlords, while continuously innovating with technology,” says Jaiswal.
However, CirclePe isn’t stopping at just residential rentals. The start-up plans to extend its solution to commercial leasing and enter Tier 2 and Tier 3 cities by 2026. “Yes, that is definitely in the offing, and we are excited to eliminate security deposits completely from the commercial rental markets as well. Urbanisation in smaller cities is creating new opportunities, and we want to be at the forefront of that shift,” says Yadav.
Long-term vision for CirclePe
The co-founders envision CirclePe becoming a flagship name in India’s rental market, akin to what Paytm has achieved in digital payments.
“What we are building is unique, a product that has never been built before and we are the only ones to be successful at this stage, though if more players enter the space, that’ll also be a positive thing. It is always good to have more competition, it makes you better. But our ultimate goal is to eliminate security deposits entirely, making renting a seamless, stress-free experience for everyone,” Jaiswal contends.
With plans to innovate further, expand geographically, and tackle new sectors, CirclePe is poised to lead a rental revolution in India.
CirclePe’s journey of becoming a transformative force in India’s rental market is a testament to the power of fintech innovation. By addressing a critical pain point, the start-up is paving the way for a more accessible and efficient rental ecosystem.
As Yadav aptly puts it, “If you can avoid paying hefty deposits without compromising on your living standards, why wouldn’t you?”
