Property technology (proptech) players in India are looking to ramp up their investment plans amid a booming real estate sector driven by technology. Leading proptech firms like Square Yards, Aurum PropTech, Spyre Proptech, and Relata.io have major investment plans in the short to medium term to expand their businesses.
As India’s real estate industry is poised to reach $1 trillion in revenue by 2030, significantly contributing to the nation’s gross domestic product, proptech has emerged as a catalyst helping drive that growth.
According to reports, the Indian proptech market is expected to grow at a rate of 9.6 per cent from 2021 to 2025 to touch the $100 billion opportunity mark by 2030.
These proptech companies leverage technologies such as artificial intelligence, Big Data analytics, machine learning, virtual reality, and blockchain to revolutionise how properties are bought, sold, rented, financed, and managed.
These technologies enable faster and more accurate property valuations, automated platforms for property search and listing, streamlined rental processes, digitised documentation and contracts, online property auctions, and smart home solutions, among others.
Proptech firm Square Yards said it plans to invest $30-40 million over the next two years as it aims to file for an initial public offering within that period. The company also aims to achieve Rs 1,000 crore in revenue in 2023-24.
“From a growth perspective, we need to invest in technology, interiors (its new business segment), and working capital,” said Piyush Bothra, co-founder and chief executive officer (CEO), Square Yards.
Aurum PropTech said that it has plans to invest Rs 550 crore, which includes proceeds from the rights issue and sale of two real estate assets it holds in its portfolio backed by provisions from Aurum.
“With a superior product and user experience, our application audience has grown by 43 per cent. As we navigate the dynamic real estate landscape, our commitment remains steadfast in delivering exceptional consumer experiences to generate quality leads for our seller partners. Without offering specific forward guidance, we hold an optimistic outlook on our future business trajectory,” said Dhruv Agarwala, Group CEO, 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 some time, we plan to identify and have 30-35 startups in our portfolio. This will help them grow and get access to the market,” said Murali Krishna, principal, Spyre Proptech Venture Fund.
Pune-based Relata.io plans to introduce an accelerator platform to help startups grow and aims to invest over Rs 3 crore in one year. Additionally, it plans to file for an initial public offering by 2027-28.
“Our focus is to come up with our accelerator programme for young generation startups. We also want to work on our network and add about 10 startups to our portfolio, in a year or two. Additionally, we look to invest time and money and give them access to our real estate network,” said Samudragupta Talukdar, founder, Relata.io.
Relata.io 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, respectively. In addition, it eyes expansion to Dubai, Singapore, among other international markets.
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