Here’s how India’s PropTech Startups can boost the future of the real estate industry:
What is Proptech? Why buzz?
PropTech (Property Technology) is an information technology (IT) application that assists individuals and businesses in the research, acquisition, sale, and management of real estate.
In fact, it’s a type of technology that addresses the needs of the real estate market through digital innovation.
PropTech Startup We plan to simplify and integrate the process of buyers, sellers and landlords at all stages of the real estate industry. For example, virtual reality software allows website users to visually view properties, split rent payments, and crowdsource new real estate developments. IoT, smart lifts, drones and virtual reality are some of the technologies that have been used so far.
The ultimate goal of this real estate technology is to reduce paperwork while making transactions faster, more efficient and safer.
Financing status of various sectors
According to an analysis by Nasscom-PGA Labs, Indian start-ups raised $ 6.5 billion in the April-June 2021 quarter. As a result, 11 of them became unicorns. Similarly, 160 financing transactions were closed in the second quarter, up 2% from the January-March period.
The number of funds raised in the June quarter was $ 6.5 billion, up 71% from the previous quarter. Food delivery platform Swiggy raised $ 800 million this quarter, with ShareChat ($ 502 million), BYJU’S ($ 340 million), PharmaEasy ($ 323 million), and Meesho ($ 300 million). ) Followed.
In addition, according to GlobalData, India has the world’s third-largest high-tech unicorn ecosystem after the United States and China. During the COVID-19 pandemic VC Investor They are interested in companies such as e-commerce, social media, social networking, food delivery, EdTech and digital payments.
The most funded sector in 2021
FinTech was the most funded sector in the reported quarter, accounting for 27% of total transaction value.
Food Tech (13%) was followed by Enterprise Technology (11%), Ed Tech (9%), Media and Entertainment (8%).
As a result, growth-stage financing accounted for 61% of total transaction value. About 100 startups have acquired seed capital, accounting for 9% of total funding.
Urban Company, CRED, Misho, Glow, Share Chat, Farm Easy, Zeta, Browser Stack, Moglix, Gupusup and Charge Bee were one of 11 unicorns. Their business is currently worth $ 1 billion in the June 2021 quarter.
How much money did PropTech Startups in India have in 2021?
PropTech is a fusion of real estate and technology. Indian PropTech Startup We received a total investment of US $ 242 million between 2016 and 2018. PropTech’s funding in the country increased from US $ 3.4 million in 2018 to US $ 56.8 million in 2019.
Following the United States and China, India has emerged as the third largest startup ecosystem in the world. India has added three unicorns every month for the past year. As a result, the total number was 51, surpassing that of the United Kingdom (32) and Germany (18). Indian unicorns are currently worth about $ 168 billion, which exceeds Telangana’s GDP.
In fact, the most valuable Gazelle is Zilingo, and the most valuable Cheetah is the digital furniture platform Pepperfry. Mobile Premier League (MPL), Rebel Foods, Cure.fit, Spinny, and Mamaearth are one of the unicorn waves of the future. They are worth $ 36 billion, which is about one-third of Delhi’s GDP at current exchange rates.
Recently Raised Indian PropTech Startup:
Take a look at some of India’s most famous PropTech startups and their funding.
Founders: Aaditya Sharda, Souvik Sengupta
Funds Received: $ 161.5 Million
The infrastructure market is a marketplace for real estate and building materials on the Internet. Its centralized platform summarizes all client requests. Then match your supply chain with the right alternative credits and effective delivery tracking capabilities.
2.2. Square yard
Founders: Tanuji Shori, Kanika Gupta
Funds Received: $ 73 Million
Square Yards is a real estate technology platform that has raised $ 25 million in growth funding from Hong Kong-based investment management firm ADM Capital. Square Yards is a real estate marketplace that offers a fully digitized real estate experience, including search and discovery, transactions, mortgages, home interiors, rent, real estate management and after-sales service.
Founder: Madhusudhan AV
Funding: $ 350,000
Bangalore-based PropTech startup BricSpaces was founded as the first proptech in the country by embassy-backed WeWork Labs and is the first in the proptech space to support ending the real estate stream with digital transactions. That is.
Raised $ 350,000 in a pre-seed round from a well-known investor. Freshworks co-founder Shan Krishnasamy, serial startup investor Bharat Kapoor of 50K Ventures, and Eeva developer Vishal are among the investors.
Founder: Aditya Jhaveri
Financing: $ 2 Million (Post-Monetary Valuation of $ 12 Million)
Method & Madness Technology Pvt Ltd, a Mumbai-based technology-based consumer-centric real estate purchasing platform, raised $ 2 million in seed capital from Silicon Valley investors with an ex-post valuation of $ 12 million.
Justin Mateen, the founder of the dating app Tinder, led the funding round and was attended by a number of other prominent Silicon Valley investors.
Founder: Dr. EMuralidharan, Simar Kohli, Tarun Kumar, and Praseed KK
Funding: $ 250,000 (Renault 19 million)
ECOSTP Technologies, a bioengineering-based hygiene company, announced on Wednesday that it has received $ 250,000 (Rs. 19 million) from the shelter Terwilliger Center for Innovation. The result is a cost-effective, self-sustaining system that can treat millions of liters of sewage daily without the use of electricity, chemicals, or human involvement, saving up to 90% on operating costs. increase.
6.6. Props AMC
Founders: Anand Moussie, Natasha Moussie
Funding: $ 142K by Jeetendra Patel, Aneeta Chopra and 2 others (October 7, 2020)
Props AMC, a data analytics, wealth management and real estate service provider, was purchased by the real estate platform Square Yards.
The entire Props AMC team, including the co-founder, will join Square Yards and continue to operate under a larger umbrella of the same brand name. The collaboration aims to provide Square Yards B2C and B2B customers with significant value and signal their entry into the data intelligence space.
Founders: Anindya Dutta, Sandeep Dalmia
Funds Received: $ 120 Million
Stanza’s business concept is based on the enormous demand for a small guesthouse called PG in India, providing affordable food and accommodation for students and employees migrating to India’s fast-growing metropolis. increase.
In addition, India-controlled accommodation provider Stanza Living is seeking to sign a deal to raise up to $ 120 million in a Series D investment led by an Abu Dhabi-based investor.
Founders: Ashish Srivastav, Sudhanshu B
Funds received: $ 413,941 (3 rupees)
Settlin, founders Ashish Srivastava and Sudhanshu, are currently operated by Linking Spaces Technologies Pvt Ltd. The company claims to provide an end-to-end stack that allows clients to start and complete transactions in less time.
Settlin, a residential property that buys and sells PropTech startups, has raised 3 rupees (about $ 413,941) in an angel fundraising round. In addition, Bangalore-based Settlin claimed that the funding came from a GSF accelerator. The Ventures Angel Platform.
Founders: Nikhil Sikri, Akhil Sikri, Sneha Choudhry
Funding: $ 56 million
Zolo, a communal PropTech startup, has students and young professionals, with additional funding to invest in technology, secure more inventory, develop AI-driven operational platforms, and accelerate expansion. Used for.
In addition, Investcorp and Nexus Venture Partners have led a $ 56 million Series C loan to communal startup ZoloStays. Zolo has already raised a total of about $ 90 million.
Founder: Vikram Kotnis
K2V2 holds a significant market share in real estate CRM, sales automation, and marketing.
Majesco, an IT consulting and services company, has acquired a 51% stake in Pune-based software technology company K2V2 for a transaction of 40 rupees.
Impact of COVID-19 on Venture Capitalist Investment
Despite the extremely difficult economic conditions caused by COVID-19, venture capital investment in India increased in the third quarter of 2020. 1.3 billion.
$ 41.4 billion according to IVCA-EY’s monthly PE / VC Roundup in 2020 Private Equity / Venture Capital Investment There are $ 4.9 billion exits for all 852 transactions and $ 4.9 billion exits for all 129 transactions. This includes open market exits, which account for 47% of all transactions in value.
Overall, the private-equity / venture capital industry continues to be a pillar of India’s PropTech startup strengths and is expected to drive innovation, job creation, entrepreneurship and infrastructure development.
Global Proptech Startup Ecosystem Update
India is ranked 20th out of the top 100 countries in the Global Startup Ecosystem Index 2021. It was 17th in 2019, but by 2020 it lost 6th to 23rd. According to the report, India’s PropTech startup ecosystem will benefit from improved infrastructure and internet speeds.
Forty-three Indian cities, including Bangalore (10th), New Delhi (14th) and Mumbai (16th), are among the top 1000 cities in the world. The United States, United Kingdom, Israel, Canada, and Germany are all in the top five this year, as they were last year.
The future of Indian Proptech startups
RealtyNXT believes that the adoption of advanced technology in a variety of disciplines and industries will open up a whole new world of possibilities. Artificial intelligence and virtual reality are just the tip of the iceberg in expressing how far we have progressed in terms of technological progress.
The global expansion of 5G cellular networks has the potential to provide a significant boost to the real estate market. With multi-gigabit peak data rates and ultra-low latency, 5G is up to 100 times faster than its predecessor.
Data intelligence not only helps extract detailed insights into foot traffic patterns, but also tracks psychographic patterns. With a virtual reality headset, house hunters can explore PropTech’s properties on a realistic 360-degree tour without the need to be present. The Contec ecosystem is a vision of construction where everything is digitally connected in real time.
Maintenance, cleaning, housekeeping, plumbing and security of appliances such as air conditioners and lighting systems will benefit from 5G involvement. Autonomous machines such as AI-powered rover, scout sites, and heavy goods transportation are popular in India because they help prevent human death. Integrated Facility Management (IFM) ensures improved efficiency, reduced operating costs, and a happier and healthier workplace in the future.
The collaboration between PropTech and Fintech can significantly minimize the friction that occurs during the development of new sites. This allows developers to spend less time and money developing sites that are economically infeasible. The feasibility of a plan and its ability to fund it are already intricately linked.
Finally, it was an unquestionably challenging year for all of us. It only added to the importance of focusing on the financial position of our business and projects as a real estate expert. Therefore, the Fintech and PropTech collaboration makes perfect sense. In addition, we promise to reduce errors and improve the efficiency of thorough investigations.
Here’s what RealtyNXT has to say about the future of Proptech in India:
https://realtynxt.com/2021/09/15/heres-what-realtynxt-have-to-say-about-the-future-of-indian-proptech-startups/?utm_source=rss&utm_medium=rss&utm_campaign=heres-what-realtynxt-have-to-say-about-the-future-of-indian-proptech-startups Here’s what RealtyNXT has to say about the future of Proptech in India: