The beauty behind Amenify’s strategy is their two-sided marketplace is a win-win, and it has an opportunity to be an extremely large company. They took time to work on the business model, and it’s paying off. Amenify has grown revenue 5x in the last 12 months, and this revenue is coming from a fraction of nearly 500,000 homes/units that have signed up. This is a good sign.
In addition to that, there are 6 things that I felt made this a compelling investment:
- Big market + clear mission
- Strong team with strategic investors
- Disruptive change for home services
- Scalable solution for RE operators
- A virtuous cycle
- Future opportunities
Big Market and Clear Mission
Real estate managers have value that is currently not being used: data, consumers, and access to the home – but it requires a full-service platform to unlock this value. Amenify is doing that.
Strong Team and Strategic Investors
Amenify’s Founder, Everett Lynn, has 10+ years of experience in the real estate industry knows how to mold a business model to fit the needs of the largest real estate clients. More importantly, I think Everett has a good mindset that helps with recruiting and selling.
It’s magnetic to chat with someone who believes in helping the people at a community, and I think that Everett’s empathy for customers and partners is what has helped bring in strong leadership in 2021 for technology and operations—several executive members have led their companies through successful exits.
It is also important to mention that Amenify has compiled a ridiculous amount of strategic investors (more than 46) who control a portfolio of more than 2.5 million homes.
Many of the PropTech VC’s I respect have also invested in Amenify. Aggressive and scrappy, Everett learned the ins and outs of the industry working for a real estate-focused private equity group. With an innate empathy for others, Everett was astonished that conversations always centered around managing the property instead of improving the resident experience.
Disruptive Change for Home Services
Amenify focuses on services that can be improved with local network effects, data, and technology. By partnering with 30,000+ homes in a market they are able to achieve a significant improvement in efficiencies, helping both the Buyer and Provider of the service.
This concentrated group of customers is something small businesses can’t acquire on their own. As a result, Amenify allows them to scale their operation through improved software like routing tools, provider applications with language translation, and auto-dispatch engines for backfilling appointments. Service pros on the platform claim the number of jobs completed by in a day can increase over more than 100%.
These cost savings are what drive the opportunity for Residents, that ultimately are economically motivated. With Amenify, residents have transparency and trust into who is coming onsite, centralized real-time support, and an economic incentive that they would not get on their own. As one example, Amenify’s private meal delivery might cost $13 from a local ghost kitchen, which is half the price of other delivery platforms. The personalization, support, and convenience of Amenify is built for these increasing trends with all demographics. COVID has only accelerated the need for high-quality personal care from trusted sources.
Scalable Solution for RE Operators
- RE Operators benefit: plug-in economic boost; multiple service teams; without the work
- Residents benefit: trust, support, and economic value
- Service Providers benefit: immediate growth and efficiency, with better tools
The most important group is the Real Estate Operator. While they care about Residents, Amenify is working to solve their pain points. From a Real Estate Operator perspective, of course I want dedicated private teams visiting my properties at fixed times to help residents. What is a game-changer is the low-cost, which means Owners have the ability to plug in service teams across an entire portfolio (instead of just a few properties that can afford it). There is an immediate and quantifiable income boost.
The additional benefits here are major property integrations (Yardi, RealPage, etc.) as Operators don’t want things disrupted. Further, one platform for numerous types of services streamlines compliance; and standardizes everything across dozens of markets. Right now, Real Estate Operators are solving this piecemeal for every region and it’s a lot of work for property managers to take care of this.
Amenify: Cashing In on A Virtuous Cycle
Amenify has signed up hundreds of thousands of units and is on a mission to reach 1 million homes in the near future, an amount that unlocks more data, more demand, more supply, and more value for everyone in the network. The fact that the current investor base controls more than 2.5M+ homes makes this 1 million home milestone more realistic.