The Built Environment Bulletin with Bharat Das, Pippin Title

Welcome to ‘The Built Environment Bulletin’, with Tabitha Francis, our Q&A focused on the PropTech and Built Environment space.

Our Q&A series is an opportunity for our Head of PropTech, Tabitha Francis, to discuss all things Built Environment, Start-ups, and Career with different founders from across the region. Each week we will ask Built Environment innovators burning questions and quiz them about their products. We hope you find it insightful and enjoy getting to know the founders as much as we have.

This week we have been in touch with Bharat Das, Co-Founder and CEO of Pippin Title.

Pippin Title offers comprehensive title search services across all 50 states, using advanced technology to deliver accurate and timely reports. Their cloud-based software saves clients time and money, streamlining workflows for title insurance brokerages, lenders, and attorneys.

What was the mission when you set out to create the business and what is unique about your business vs competitors?

When we set out to create our business, our mission was clear: to modernize the archaic process of land title transactions. My journey with land title began early in my career as an investor at a large fund, focusing on oil and gas investments. Land title played a crucial role in accumulating parcels, and my family’s involvement in commercial real estate gave me additional insight into the problem. The pain point we identified is the inefficiency in real estate transactions. Despite the digitization in various sectors, real estate transactions remain slow and cumbersome. While you can buy a stock on your phone in a day, real estate transactions, even for professionals, can take 45 days or more. Our goal was to change this, making the largest transaction most Americans ever make faster and more stable.

What are some of the challenges you have faced within the Built Environment sector given the macro-climate?

Managing the macro climate in real estate has been a roller coaster over the past few years. We started during COVID, a time when digitization surged as industry professionals needed to access information remotely. However, the market shifted dramatically with rising interest rates and a significant drop in home transactions. Some customers saw a 95% decline year-over-year, challenging us to adapt. We pivoted to focus on commercial real estate alongside residential purchases, leading to significant growth. Despite the weak market, our business grew almost 4x over the past year, with commercial real estate growing 31x. By honing our technology and efficiencies, we’ve been able to provide substantial value to our customers, navigating the challenging environment that all real estate-related startups have faced.

Congratulations on your recent funding! With that capital secured, what does the road ahead look like for your company?

Securing recent funding allows us to make long-term investments and strengthen our market position. We believe capturing market share in this down market will make us stronger as conditions improve. Our focus includes acquiring top talent, enhancing our product set, and rolling out AI features for automated document generation. We’ve also built integrations to expand our customer base. These efforts ensure that our platform remains robust and effective, setting us up for continued success as the market evolves.

What advice would you give to other startups seeking capital in this challenging landscape?

For startups seeking capital in this challenging landscape, it’s crucial to demonstrate product-market fit and the potential performance in a future market. It’s important to show that your business can thrive even in a downturn. We pushed ourselves to prove that we could grow despite the weak real estate environment, a key proof point for investors. Understanding the value your current customers see in your product and scaling that value are essential steps. Focus on the real, tangible benefits your product provides and how you can expand those benefits to a larger audience.

What are your predictions for the rest of 2024?

Predicting the rest of 2024 is complex. Many economists expected interest rates to decrease this year, yet the strong economy has prevented the Federal Reserve from cutting rates aggressively. Planning ahead involves risk management and preparing for various possible outcomes. I believe that at some point this year, we might see the Federal Reserve cut rates and inflation decrease, influenced by the upcoming election and potential policy changes. For instance, President Biden’s State of the Union address included points on the title insurance industry, which could impact our customers and competitors. Staying vigilant about economic and political changes will be crucial for navigating the rest of the year.