ApartX — a startup that helps landlords save time

Kanat Keldibekov, 37 years old, city — Astana, founder and CEO of ApartX

About Me

I used to be an entrepreneur in various fields. At one point, I worked on short-term apartment rentals. At that time, I had a problem with key handover. For example, I managed up to ten apartments. Several tenants wanted to move into some of them simultaneously. I had to constantly ask someone for help or hire people. There were also inconvenient check-ins at night. Additionally, there was always a risk that an unauthorized person could make a duplicate key and subsequently enter the apartment illegally.

I started looking for solutions and came up with the idea of digitalizing keys.

Startup Launch

In the first stage, we wanted to digitize all access points so that people could open apartments, intercoms, parking lots, barriers, and all doors they encounter on their way using an app. Later, we decided to focus solely on short-term rentals. Thanks to my experience, I already knew how to build a product in this niche.

We launched in 2020. By the end of the year, we had our first sales and clients. This was a complex process that took a lot of time because we had to explain how our system worked to every potential buyer.

Initially, we found clients who owned a large number of apartments. We gave them one lock for free to test. Typically, after a month of use, clients would purchase our device for all their properties. We began to grow rapidly and currently hold 30% of the short-term rental market.

Target Audience

Our target audience consists of property management companies and individuals engaged in short- and medium-term rentals. We provide them with the ability to manage their real estate safely and remotely.

Our product includes integration with smart locks and biometric verification systems, digital contacts, and synchronization with online booking systems.

Clients can rent out apartments and premises knowing exactly who is staying there. Previously, they had to constantly stay in the city, drive around, search for keys, and deal with duplicates. We have freed up to 90% of their time.

After our solution was created, several bloggers emerged who teach how to build a short-term rental business using automation systems. They also promoted us to their audience.

ApartX has about 1,000 clients, and more than 3,000 properties are under management.

Acceleration Programs

We participated in accelerators such as:

— Google for Startups

— Silkway Accelerator

— MOST

— Kazakhstan Digital Accelerator

— Scalerator.

Accelerators teach how to test hypotheses and develop products. The most valuable aspect of such programs is the networking that occurs among participants in the cohort. It provides the opportunity to learn how other founders solved their problems. You can also share your own insights. This is a unique exchange of experience that significantly impacts business development.

Funding

Initially, we self-funded the startup. The first investment was $50,000, received through the Kazakhstan Digital Accelerator. Then, we raised $80,000 on Digital Bridge from Activat. Recently, we received $380,000 from Big Sky Capital and Activat.

Challenges

A founder's life involves constant financial and emotional ups and downs.

Burnout comes every three months, but you need to find ways to cope with it. You must get used to the idea that this will happen frequently.

There are always high expectations from all sides for a founder. You set high standards for yourself as well. Therefore, stress is common. It is necessary to know how to maintain concentration, work with the team, and find inspiration.

About 99% of startups fail. To avoid giving up, you need to believe in your idea. Success is also influenced by the team you work with.

Achievements

In 2022, we entered the Turkish market. We spent time and some money, but it didn't work out. I consider it an achievement that we tested a new market without spending too many resources. I now realize that we were unprepared, did not study the market thoroughly, and took on significant risk.

Another achievement is fivefold growth in Kazakhstan. This was made possible thanks to a referral system for partners and agents.

Plans

The main goal is to solidify our position in the Kazakhstani market. By the end of the year, we aim to capture 50% of the short-term rental market.

Another goal is to become the largest player in the Central Asian market.

We plan to explore Southeast Asian markets — Indonesia, Malaysia, and possibly Vietnam. We want to understand which business model we can use to enter these markets and open an investment round for scaling.