BUSINESS

Rising Stars: Dhimaan Shah of Isprava Group is building beautiful holiday homes and a robust luxury lifestyle brand

By Arzoo Dina

19 May, 2023

The co-founder and COO of the luxury holiday homes brand lets us in on growing the business, setting exacting standards for the properties, and coming out stronger since the pandemic

It all started with a holiday in Goa. When Dhimaan Shah and his brother Nibhrant decided to take a break from their respective careers in banking (back in the United States), and try their hand at building something of their own, the sunshine state offered the perfect opportunity. “We fell back in love with Goa and were looking for holiday homes there. However, what we noticed was that most of the villas were cookie-cutter and traditional in design and style. There was a gap in the market for beautiful homes and we wanted to plug that,” says Dhimaan Shah, founder and COO of Isprava Group, a luxury hospitality firm in the real estate segment. 

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Dhimaan Shah and his brother Nibhrant decided to mortgage their family home in Mumbai and take a loan to kickstart the business

This was in 2016. Fast forward to today, the brand has grown to become a strong name in the luxury real estate segment with a presence in markets like Goa, Alibaug, the Nilgiris and now Kasauli as well. Isprava, a luxury home development company, has delivered about 167 homes to date with nearly 300 more villas in different stages of construction across the country. The company has also expanded into new verticals, launching Lohono Stays, a luxury vacation villa rental firm in 2019.  

Today, Isprava’s clientele ranges from HNIs and Ultra HNIs to Bollywood celebrities, among others. Their USP is offering a full-fledged, end-to-end service—so as homeowners, you’re not only getting a fully-furnished villa, but also additional perks such as 24/7 concierge service that takes care of everything from your favourite restaurant reservations to throwing an intimate soiree at your home, buying groceries, housekeeping and daily turndown service—almost like a luxury hotel but more personal.

Isprava Group, which has under its umbrella Isprava and Lohono Stays, has raised four rounds of funding till date, from family offices like Anand Piramal, Nadir Godrej and the Burman family office of Dabur India Ltd. The most recent round was led by Symphony International Holdings Ltd in January 2023, at ₹160 crore

For the 36-year-old investment banker-turned-entrepreneur, it was an idea he and his brother were willing to bet on, as the duo decided to mortgage their family home in Mumbai and take a loan to kickstart the business. Isprava Group, which has under its umbrella Isprava and Lohono Stays, has raised four rounds of funding till date, from family offices like Anand Piramal, Nadir Godrej and the Burman family office of Dabur India Ltd. The most recent round was led by Symphony International Holdings Ltd in January 2023, at ₹160 crore. 

Edited excerpts from a conversation with Dhimaan Shah: 

Tell us about the brand’s journey so far. How did Isprava come about?

We stumbled upon the idea of holiday homes, because we ourselves were in pursuit of one. From there, we nuanced it down to what Isprava is as a brand today. We asked ourselves, what are some of the biggest pain points in owning and managing a home that is not in your primary place of residence? We then went about addressing those issues. Simply put, we tell homeowners, “You bring your suitcase and we bring everything else.” 

We like to believe that we build some of the most beautiful homes in the world. No two homes are the same. We were sure from the get-go that we didn’t want to be a hardcore real estate company, rather, positioning ourselves as a luxury lifestyle brand. There was no one doing that, and that’s the opportunity we saw.

"Prior to the pandemic, especially in a place like Goa, land prices were doubling every 18-24 months. Now it’s doubling every 12-15 months"

"Simply put, we tell homeowners, “You bring your suitcase and we bring everything else” says Shah

How has the market evolved since the time Isprava launched?

There’s been quite a change [over the years] but I believe the COVID-19 pandemic just accelerated the industry’s growth. Let me give you some perspective. Prior to the pandemic, especially in a place like Goa, land prices were doubling every 18-24 months. Now it’s doubling every 12-15 months. What we thought would happen by 2025 happened by 2021, so it’s only the timelines that have changed.

We launched Lohono Stays in 2019 and the market was quite ready for a luxury product of this kind. As Indians, we typically like to travel with family and friends. In a traditional hotel set-up, you have shared common areas but with a villa, you have the entire space to yourselves, especially living areas where you can gather together and unwind. The only insecurity here is service and that’s what we have tried to solve. We’ve ensured that the service levels are consistent across the board, whether you’re staying at one of our villas in Goa or in Kashmir.

Tell us about the business model and how it works?

With Lohono Stays, it’s quite straightforward. You book a villa online, through our app or website, and pay per night. With Isprava, we sell one-of-a-kind homes matched with an unparalleled lifestyle. Each home is priced differently based on a variety of factors and ranges between ₹7 crore to ₹45 crore.

Is demand now outstripping supply in the luxury real estate segment?

I’d definitely say so—that’s been the case since day one. We’ve been growing at an average of 120 per cent for the last four years. Today, nearly 25-30 per cent of our order book in Goa for Isprava is from outside India. NRIs make up a chunk of this.

Demand from Online Travel Agencies (OTAs) like MakeMyTrip are also fuelling growth on Lohono Stays. We are seeing interest from corporates and law firms who want to host their offsites at our villas, be it bringing their partners or C-suite. Today, this segment makes up 17-20 per cent of revenue for us. Two years ago, this was zero.

"We’ve been growing at an average of 120 per cent for the last four years. Today, nearly 25-30 per cent of our order book in Goa for Isprava is from outside India. NRIs make up a chunk of this," says Shah

What were some of the challenges in growing the business?

There were several challenges, to begin with. When we started Isprava, the average market rate of a home in Goa was ₹1.5 crore. We listed our first home for ₹13 crore and sold it at ₹12 crore. We were confident that we were bringing something very different to the market. Of course, agents and brokers were wary but having sold our first villa also became our biggest strength.

With Lohono Stays, it’s not an easy business to scale. Running 10 homes is fine but when that becomes north of 100, you’re suddenly managing many more elements and ensuring it's seamless across the board. Lohono was just a natural extension of the brand philosophy. We currently have about 110 holiday homes on the platform, across Alibaug, Goa, Karjat, Mahabaleshwar, Shimla, Mashobra and Kashmir. We also have an international presence in markets across South and Southeast Asia like Thailand, Bali and Sri Lanka. 

How did you go about raising funds? Was it challenging?

We’ve been fortunate enough to have investors who have understood our vision from day one. These were also people who have personally experienced what our brands have to offer and liked the product. The beauty of working with family offices as investors is that they give us the time to grow. To date, on a corporate level, we have raised about ₹150 crore.

Isprava Group currently has 110 holiday homes on the platform, across Alibaug, Goa, Karjat, Mahabaleshwar, Shimla, Mashobra and Kashmir

They also have an international presence in markets across South and Southeast Asia like Thailand, Bali and Sri Lanka

Competition in the vacation home rental space is growing. How is Lohono Stays differentiating itself here?

We’re very focused on offering the best of hospitality. We have fully-trained staff who undergo rigorous training regularly, we have a full-blown F&B programme, so whether you want Jain or vegan food, these options are available. With our international stays, we offer a level of ‘Indianness’ with our service. This could be as simple as getting that morning cup of masala chai and poha for your breakfast. 

You’ve recently partnered with MakeMyTrip for Lohono Stays. What synergies does this partnership offer?

While we do have partnerships with other OTAs, this particular one is more strategic. There is a lot of demand they are witnessing on their platform for a product like ours, with clients looking for luxury options beyond just flights and hotels. It’s a mutually beneficial partnership and they have even committed some capital to us. 

What’s next for the Isprava Group?

I think the strategy is to just focus on the markets we are currently present in and go deeper there. That’s our focus for Isprava. We believe that over the next three years we will grow at a CAGR of 50-60 per cent. With Lohono Stays, we want to expand geographies and tap new markets. The ability to scale here is tremendous and we’re hoping to grow 100 per cent year-on-year for the brand. We’re also potentially looking at expanding verticals, at some point in the future.

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