India's Proptech sector is booming, securing $4 billion in investments between 2009 and 2022 with a CAGR of 49%. Co-living and co-working platforms dominate, followed by construction technology. Major players like NAREDCO Maharashtra are launching dedicated funds to accelerate innovation in real estate and support start-ups. Brigade REAP, backed by Brigade Enterprises Limited, has mentored 62 start-ups with a 40% success rate in securing external funding. HDFC Capital's HeART Platform and Gruhas Aspire are also actively fostering Proptech innovation through accelerator programs, further driving growth in this dynamic sector.
India burgeoning real estate sector is witnessing a wave of Proptech investments. According to recently published reports, Indian Proptech firms secured $4 billion in investments between 2009 and 2022, with a CAGR of 49 percent, even amidst global economic uncertainties. Shared economy platforms such as co-living and co-working took up a lion’s share at 64 percent of the total fund inflow, followed by construction technology at 15 percent. Government bodies and private firms are taking notice, with several big names having set up incubators, accelerators and funds catered to this segment specifically.
The National Real Estate Development Council (NAREDCO) Maharashtra, the foremost governing body representing real estate developers, is set to launch the RealTech Fund (RTF) with an initial investment of Rs 50 crore. This fund is dedicated to catalysing and expediting innovation and technological advancements within the Indian real estate sector. Additionally, it will extend its support to startups operating within the real estate domain.
According to a statement by NAREDCO, the initial corpus of Rs 50 crore is just the beginning, and further expansion of the fund will be contingent upon the response it receives. This platform for real estate stakeholders will engage in discussions on a wide range of topics, including government policies, private equity investments, real estate financing, strategies for commercial and retail growth, and the future of redevelopment, among others.
In July this year, Brigade REAP, India’s pioneering real estate accelerator welcomed five innovative start-ups from a pool of 150 applicants during its much anticipated 14th Cohort. Amongst the chosen ones were a hospitality start-up called Raho, Vividobots that builds robots to paint exteriors of high-rise buildings, Uni-AM which is focused on reducing carbon footprint in cement production, Spatic which is location based intelligence platform that assists in retail expansion and Paving+ which focuses on sustainable waste solutions. Since its inception Brigade REAP has mentored 62 start-ups and has had a 40 percent success rate in securing funds for them from external sources. It operates under the auspices of Brigade Enterprises Limited, a leading real estate development company in India.
Similarly, in November 2022 at the HDFC Real Estate Tech Innovator’s Challenge, the HDFC Capital backed HeART Platform announced it has shortlisted 10 start-ups that it intends to support and fund. The finalists included companies focused on construction technology, fintech, sustainable technology and sales technology. The HDFC Affordable Real Estate and Technology (HeART) programme was launched in 2019 with the goal of promoting technologies to make affordable housing more accessible. It provides a platform to real estate technology companies with innovative products that lower costs in every part of the development cycle of a real estate project.
Another accelerator worth its salt is Gruhas Proptech, Anthill Ventures and DLF Family Office backed Gruhas Aspire. In April this year, the company announced it would be hosting its second cohort and welcomed participants. Under its six month accelerator program, the three organisations will participate in mentoring start-ups that are focused on improve productivity and sustainable practises in construction and real estate. In its first cohort, participating start-ups were able to cumulatively raise Rs 22 crores from the founding partners and external investors.
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