Acquisition project | Brick & Bolt

📄

Acquisition project | Brick & Bolt

Elevator Pitch

Brick&Bolt the one stop solution for all your construction and renovation needs for your sweet home. B&B consists of highly driven and motivated team of experienced professionals who remove the aggravation from home improvement projects, delivering top-grade results within the time limit anf budget.

Our extensive services, from design and planning to execution as well as post care, we promise hassle free journey. From renovating your house to building your dream home Brick&Bolt has it all covered to bring your ideas to life and put a smile on your face.

Our dedication to high-quality , attention to detail and customer oriented way has paved us the way to leading and trusted name in the industry. Let's join our hands gether to make your home dreams into reality.

What is Brick & Bolt ?

CRITERIA	DESCRIPTION
What is it?	Tech-Driven construction company
Founded	2018
Form Factor	1) Available as an app to download in Android and Apple stores. 2) Website for desktop and mobile.
Region(s)	1) Available all over India and immediate cost estimation available in 11 cities including Chennai, Bangalore & Hyderabad.
Value Proposition	1) Safe Money Transaction : Tansactions work on an Escrow Model. No advance payment is done to the contractor for any stage.No cost overruns. 2) Transperancy : Clear and detailed quote and online tracking of projects. 3) Quality Control : Stringent checks through high standard. 4) Zero delay policy.

Understanding Core Value Proposition

Easy and Secure way of building the home project

Safe Money Transaction

Brick&Bolt money transactions work on an Escrow Model. No advance payment is done to the contractor for any stage.
A project is typically divided into multiple stages. For every stage, customer transfers only the stage amount to Escrow.
Only once the project is approved by our project management team, the amount is transferred to the contractor.

Quality checks and Real-Time update

We assess all projects on the same quality standards called QASCON-BNB (Quality Assessment System for Construction - Brick&Bolt).
This has 470+ quality checks per floor of construction. Our project management team assess the quality on these parameters.

Zero Delays

Construction project management software helps to manage the construction activity to give us live updates and helps us to avoid any delays in construction projects.
In case of avoidable delays in the project, there's a strict policy where the customer is monetarily compensated.

Understanding the Users

Sample size : Was able to do a survey with 4 people who have recently finished constructing a home out of which 1 user has done this through Brick&Bolt.

Homeowners and Property Developers

First time home owners : People looking to build their first dream home , looking for safe and reliable construction.
Property developers : People looking for developing a residential and commercial who are seeking a partner for management and construction.

Technology driven Customers

People who are technology saavy and are interested in tech driven digital tool for management and communication.
People are interested in real time tracking and updates and expect transparency through online platform.

Time and Quality sensitive Customers

People who have strict deadlines for construction completion.
Customers who expect quality and follow proper construction practices.

Understanding your ICP

B2C Table

Criteria	User 1	User 2
Name	Shrivardhan	Anoja A
Age	50-65	29-40
Pain Point	Wants quality work at affordable cost.	Wants quality and latest tech in home at an afforable and market price.
Solution	Look for construction contractors through referals	Look for contractors through various social media including Youtube and Meta.
Behaviour	Old school thought process, reluctance in accepting the tech driven methods	Tech driven, always looking for better things and accepts the change through technology.
Perceived Value of Brand	Hard to convince , but once convinced and proved will stay loyal to brand. And will refer to others.	Less hard to convince , always looking for better brand.
Marketing Pitch	Referrals and erson meets to prove the brand point.	Through social media and through the app to prove the tech in this field.
Frequency of use case	Once or twice in lifetime	Twice or thrice in lifetime.
Value Experience of the product	Higher experience of product due to age factor, would have seen the market and design changes over the years and would expect the best.	Limited experience, higher exposure and higher expectations from the product.

Criteria	ICP 1	ICP 2
Adoption Curve	High	Low
Appetite to Pay	High	Medium

Frequency of Use Case	Low	Low

Competitors in the Market

Company	Location and year	Company stage	Total Equity	Remarks
Brick & Bolt	Bangalore, 2018	Series A	$16M	-
BuildNext	Ernakulam, 2015	Seed	$4.45M	Uses VR enabled walkthrough BPI (Building performance Indice) for optimization of space and ventilation
WeHouse	Hyderabad, 2017	Seed	$1.56M	Available only in two cities

Size of the market

Now it’s time for some math, calculate the size of your market.

TAM = Total no. of potential customers x Average Revenue Per Customer (ARPU)

SAM = TAM x Target Market Segment (percentage of the total market)
SOM = SAM x Market Penetration/Share

Total addressable Market

Urban Population according to IBEF (KPMG ,world bank census 2011)

501 Million ( 2024 )

542 Million ( 2025 Forecasted )

Average size of Indian Home- 1300sqft (2023) -source Property Consultant .

Average build cost per sqft - Rs. 1900/-

Calculation : 501,000,000 X 1900 = $11.2B

Serviecable addressable Market

ICP is aged 29 to 65 years of age (29-40 is ICP #2 and 50-65 is ICP #1)

1. Reason for ICP #1: Indians who work till the retirement age and have savings and intend to build a dream home for their family
2. Reason for ICP #2 : Indians who are middle in middle class and would love to get a home for family through their initial earnings and bank loans ( as a milestone achievement)

Took census projected in 2016 from 2011 census and narrowed on the age brackets

30-34
35-39
50-54
55-59
60-64

Service obtainable Market

33,60,50,000 - 33.6 crore Individuals

Considering wealth for home at 1% 3.36Lakh individuals

Brick &Bolt till date has completed 4500+ projects , it has achieved 1.5% of the market penetration.

Onboarding Journey

App Download -> Enter Mobile number -> Get OTP -> Enter the property details -> Get an Expert call you

Expert will guide you through the process and explain various available options for construction.

Website traffic and App analysis

Website	Monthly visits	Domain Trust	Page Trust	App Downloads
Brick & Bolt	22,400	49	16	10,000+
BuildNext	6,500	27	22	1,000+
Wehouse	201	30	9	-

Domain and Page Trust Score is marked (0-100) higher the number better the trust.

Website Audit

(Done through SE Tracking)

SE Tracking gave a the website a page quality score of 53 for Construction.

With few High priority suggestions for website improvement.

Designing Acquisition Channel

Organic search channel

Direct competitor BuildNext has optimised the organic keywords but loses out on the organic traffic.

Referral Program

Brick and Bolt runs a referral program through it's website

LTV and CAC cost calculations

Assumptions

Gross profit from each customer is 15-20% ( source: Google/Quora)
Average of 50 customers per month ( 4500 homes in 5 years and considering flats as a single customer)
Average size of each project ( 1300sqft-from Google)
Average cost of each project ( assumed Rs.1900/sqft)
Customer Life time = average of 1.25 year ( to build an house)
Retention rate of each customer is 0.20 ( assuming 2 out of 10 customers want to do another project with B&B)

Average revenue per customer (ARPC)

ARPC = Average revenue per project X no. Of project

= 1300 X 1900 X 1.10

= Rs. 27,00,000/-

Gross Margin

ARPC % 15

= Rs. 4,05,000/-

LTV

ARPC x Gross margin percentage x Customers Life Time

= 27,00,000 x 0.15 x 1.25

= Rs 5,10,000/-

Paid Ads

Calculating CAC based on paid Ads through Google and Social Media

Allocating a fund of Rs.50,00,000/- in total for all the paid ads

Channel	Search ads /Ad campaigns	CPC	Allocated Costs
Google Ads	Target keywords like construction, interior design, Building etc	Rs.50	Rs.25,00,000/-
Instagram/Facebook	Run an ad campaign targetting home/building searching users and ask them to fill a consultation form	Rs. 12.50	Rs.15,00,000/-
Youtube	Boost the existing youube channel and videos and add a landing page in the description box for searches like home building , renovation and similar terms	Rs. 0.50	Rs. 10,00,000/-