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Proptech startups increase investments as more people buy homes online

Proptech players in India are planning to increase their investment amid a booming real estate sector driven by technology. Leading proptech firms such as SquareYards, Aurum PropTech, Spyre Proptech, and Relata.ai have substantial investment plans in the short to medium term to expand their businesses.

As India’s real estate industry is expected to reach a revenue of $1 trillion by 2030, significantly contributing to the nation’s GDP, proptech or property technology has emerged as a catalyst driving this growth.

These proptech companies use technologies like artificial intelligence (AI), big data analytics, machine learning, virtual reality, and blockchain to revolutionise how properties are bought, sold, rented, financed, and managed. These technologies facilitate faster and more precise property valuations, automated platforms for property search and listing, streamlined rental processes, digitised documentation and contracts, online property auctions, and smart home solutions.

Square Yards plans to invest $30-40 million over the next two years as it prepares for an initial public offering (IPO) within that period. The company also aims to achieve a revenue of Rs 1,000 crore in FY24.

“From a growth perspective, we need to invest in technology, interiors (our new business segment), and working capital,” said Piyush Bothra, co-founder and chief executive officer, Square Yards.

Aurum PropTech announced plans to invest Rs 550 crore, including proceeds from the Rights Issue and the sale of two real estate assets in its portfolio, backed by provisions from Aurum.

“We aim to bring transparency, trust and digital transformation to the real estate sector through our integrated proptech ecosystem…We plan to attract more online customers using data analytics tools to identify the ideal clientele for rental and buying/selling real assets, and reach out to them through digital mediums,” said Ashish Deora, founder and chief executive officer, Aurum PropTech.

Housing.com is continually expanding its audience across web and mobile platforms. “With a superior product and user experience, our app audience has grown by 43 per cent. As we navigate the dynamic real estate landscape, our commitment remains steadfast in delivering exceptional consumer experiences and generating quality leads for our seller partners. We hold an optimistic outlook on our future business trajectory, without offering specific forward guidance,” said Dhruv Agarwala, group chief executive officer, Housing.com and PropTiger.com.

Spyre Proptech Venture Fund aims to invest about Rs 400 crore in the next 24-36 months in various proptech startups.

“Proptech is a niche segment. Over time, we plan to identify and include 30-35 startups in our portfolio. This will help them grow and gain market access,” said Murali Krishna, principal, Spyre VC.

Pune-based Relata.ai plans to introduce an accelerator platform to support startup growth and aims to invest over Rs 3 crore in one year. Additionally, it plans to file for an IPO by FY 2027-28.

“Our focus is to launch our accelerator program for the younger generation of startups. We also want to expand our network and add about 10 startups to our portfolio, in a year or two. We aim to invest time and money and give them access to our real estate network,” said Samudragupta Talukdar, founder, Relata.ai.

Relata.ai also intends to raise a total of Rs 50 crore in two phases – Rs 10 crore by June 2024 and Rs 40 crore by March 2025. Furthermore, it is eyeing expansion into international markets such as Dubai and Singapore.

Kaylie Pferten
Kaylie Pferten
A pilot of submersible crafts in a former life, now married to my husband David and writing about investment advice.

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