Zuma: Convert Apartment Leads to Leases Faster
The Challenge of Apartment Hunting and a New AI Solution
The process of finding a new apartment can range from a relaxed undertaking to an urgent necessity. Often, prospective renters will proceed to the next listing if they encounter difficulty reaching the leasing office, even if the initial property was of interest.
Recognizing this inefficiency, Zuma has emerged with a solution designed to provide rapid responses to inquiries. The company, which integrates artificial intelligence into sales engagement processes, has officially launched beyond its beta phase, securing $6.7 million in seed funding spearheaded by Andreessen Horowitz.
From Real Estate Consultancy to AI-Powered Leasing
Zuma was co-founded by Shiv Gettu, formerly a real estate consultant and currently the CEO, and Kendrick Bradley, the president, who transitioned from engineering roles at Boeing and SpaceX in 2018 to work within property management. Their combined experience highlighted significant challenges faced by real estate sales teams.
Initially, they established a technology-focused hospitality company resembling Airbnb, achieving $2 million in revenue within just nine months. However, the onset of the global pandemic necessitated a shift in their business model.
Faced with long-term lease obligations and a decline in travel, they repurposed their technology to create a virtual leasing office. This evolution ultimately led to the development of Zuma, as explained by Gettu in a recent interview.
The Importance of Immediate Response
Data indicates that a substantial portion of real estate leads arrive during off-hours – nights and weekends – when leasing agents are typically unavailable. This delay in response can dramatically reduce the likelihood of conversion, with a potential decrease of up to 100 times within just half an hour.
How Zuma's AI Agent, Kelsey, Works
Zuma’s core offering is an AI-powered agent named Kelsey. Kelsey is capable of addressing intricate questions regarding properties through text messaging, proactively engaging potential renters and encouraging bookings even outside standard business hours.
The system also incorporates a “human-in-the-loop” component, ensuring that complex inquiries beyond Kelsey’s capabilities are seamlessly transferred to a human agent for personalized assistance.
“We deeply understood the inherent value of leads and the critical need for effective nurturing,” Bradley stated to TechCrunch. “Text message communication provides immediate engagement. A prospective tenant may wait up to 48 hours for a response, but Zuma integrates with existing property management systems.
When a lead submits an inquiry, Kelsey promptly delivers information about the property and its policies, with the ultimate goal of scheduling a viewing and facilitating lease signing.”
Impressive Growth and Return on Investment
Since January, the company has experienced a tenfold increase in revenue. Current clients, such as Bungalow.com, have reported an average conversion rate improvement of 2.1 times within 30 days, alongside a 35 times return on investment, and a 50% reduction in sales staffing expenses.
Investment Details and Future Plans
The investment round was led by Andreessen Horowitz and included participation from Y Combinator, Range Ventures, Liquid 2, Day One Ventures, Soma Capital, and several individual investors.
These individual investors include Chris Erikson, co-founder of Apartment List, Qasar Younis, former COO of Y Combinator, and Austen Allred, founder of Lambda School. This latest funding brings Zuma’s total funding to $7.2 million.
Gettu indicated that the new capital will be allocated to the development of new features, expansion of the sales team, and strategic market penetration. Zuma is also exploring the application of its technology to other industries reliant on sales teams, including healthcare, automotive, insurance, education, and fashion.
“Zuma’s unique combination of human support and AI delivers a remarkably engaging conversational experience for potential customers, significantly boosting conversion rates,” commented Connie Chan, general partner at Andreessen Horowitz. “The Zuma team has demonstrated a tangible impact for property management organizations, and the potential for growth is substantial as this platform expands to serve and scale any industry requiring effective lead nurturing.”