Proptech (property technology) brands in India are looking to scale up investments amid the boom in the real estate sector, which has also been technology-driven to a major extent. Leading firms like Square Yards and others have big investment blueprints lined up for the short to medium term for business expansion. The Indian real estate industry is on track to touch $1 trillion by 2030 in revenues, thereby contributing handsomely to the gross domestic product (GDP) of the country.
Proptech has now emerged as a key catalyst behind the growth of the industry. The proptech market in the country is anticipated to grow at 9.6% between 2021 and 2025, while potentially scaling the $100 billion opportunity mark by the year 2030. These brands utilize technologies like big data analytics, artificial intelligence, virtual reality, machine learning, and blockchain for completely transforming the purchase, sale, rent, or management of properties.
India’s foremost proptech entity Square Yards has planned to invest $30-40 million in the next couple of years, while it is also aiming at filing for an IPO (initial public offering) within this duration. Square Yards is also targeting revenues of Rs. 1,000 crore for 2023-24. The Co-Founder and Chief Executive Officer at Square Yards, Piyush Bothra, states that the company needs to make investments based on its growth perspectives and these will span technology, working capital, and interiors (a new business category).
Many other proptech players are also lining up investments in the sector, including the likes of Aurum PropTech, which is planning to put in Rs. 550 crore, including proceeds received from the sale and rights issue of two real estate assets in its portfolio, with backing from Aurum provisions. Another brand Housing.com is also planning to keep expanding its customer base throughout both mobile and web platforms. Spyre Proptech Venture Fund is also planning to pump in Rs. 400 crore over the next 24-36 months into several proptech startups as per reports.
A new accelerator platform is also being planned by Relata.io from Pune, which is planning an IPO by 2027-28 and investments of Rs. 3 crore in a year, while intending to raise Rs. 50 crore in two phases by March, 2025.
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Published Date: 3 April, 2024
