As one of the leading Total Real Estate Solution companies in Nigeria, Alpha Mead Group through its Alpha Mead Development Company, has proved and still letting the public understand its place in creating and delivering inclusive value to all stakeholders. From Call2FixIt, an app that enables property owners to have sustainable maintenance and repair of their damaged or malfunctioning facilities to Rent4Less, which assists Nigerians across socioeconomic status to pay for rent monthly, the Alpha Mead Group has proved its position of a company that inspires Africa.
In our earlier analysis, our analyst spoke with Olusesan Ogunyooye, the Head of Marketing and Corporate Communications, on the significance of Rent4Less in Nigeria’s real estate industry. He stressed how the product enhances and balances co-value creation and capturing. For scaling up of the product, the company raised a fixed-rate series one $1 million private placement bond.
From Engineer Femi Akintunde, the Group Managing Director, to Mr Damola Akindolire, the Managing Director of Alpha Mead Development Company, the fund will be appropriated for sustainable scaling of the product across its primary locations, where it is being deployed. According to them, the product will continue to be beneficial to developers, landlords, real estate investors and tenants.
Our analyst notes that since the rental market section of the industry is growing every year despite numerous challenges, Rent4Less has a high propensity of growing as well when existing challenges are mitigated with the best strategies and tactics by the company. Our analyst expects acquisition of some existing platforms, that also prioritises monthly payment, by 2024 because its recently raised fund and internal ones must have been deployed to critical areas of scaling the product between 2021 and 2023.
The inability to acquire or merge with the platforms such as Fibre, Handyhomesng, Spleet.ng, Muster, Trovit, PayMyRent and Kwaba would establish the needed competition within the ‘monthly rent value proposition space’. As Alpha Mead’s Rent4Less becomes more visible in the market, these platforms are expected to react using different strategies. Already, Rentsmallsmall had over 12, 000 monthly stay subscribers in 18 locations. It has also been able to save N132 million on legal and agency fees, according to its official website. Analysis of the business models of these platforms reveals insignificant difference in terms of the value proposition, customer focus, reaching the customer, revenue streams among other key blocks of their models.