Cumulative Proptech Investments In India Cross $4 Billion

Segments such as co-living and co-working accounted for 64% of the total fund inflow

In the first half of 2023, cumulative proptech investments in India surpassed the $4 billion milestone since 2009 with segments including co-living and co-working securing the majority share, according to property firm Housing.com.

Between 2009 and mid-2023, proptech investments in India witnessed the shared economy sector as the frontrunner, comprising 40 per cent of total investments, followed by sales and marketing with a 24 per cent share. Furthermore, the investments in India have grown at a CAGR of 49 per cent since 2010 with segment such as shared economy and sales and marketing seeing significant investments in value terms.

Additionally, funding in proptech firms reached $719 million, showing a slight decrease from the previous year’s $742 million. Even though the funding saw a marginal decline, certain segments within the industry drew substantial investor interest, such as co-living and co-working, which secured the majority share, accounting for 64 per cent of the total fund inflow.

This surge of investor confidence can be attributed to the perceived growth potential in these segments. “Investments in the proptech space remained stable throughout 2022, even amidst global turmoil. Over the past decade, the real estate sector has made significant strides in adopting innovative technologies, particularly in the last three years. The Covid-19 pandemic and subsequent lockdowns served as catalysts, accelerating the adoption of technology across the industry,” said Dhruv Agarwala, Group CEO of Housing.com, PropTiger.com, and Makaan.com.

Additionally, companies offering construction technology solutions received 15 per cent of the total funding in 2022. This trend reflects real estate developers’ growing emphasis on reducing construction time while maintaining quality standards. In countries including India, where extended construction cycles inflate project costs, these solutions are increasingly being leveraged for effective project management.

The report noted that investment deals include debt, PIPE (private investment in a public entity), PE investments in special purpose vehicles (SPV), project-level investments, pre-IPO PV deals, and buyouts. However, deals with undisclosed amounts were excluded from the analysis to maintain transparency.

Despite the fact that the sector experienced a marginal dip in funding in 2022, its overall growth trajectory is expected to remain positive. The robust investment in shared economy platforms and construction technology solutions underscores the industry’s commitment to leveraging technology for sustainable progress and development, the report added.