Brigade REAP, a proptech accelerator program which aims to help companies build technology-based solutions for sustainable businesses, created a fund in 2021 called PropTech@REAP, “India’s first PropTech syndicate,” which it says will invest in proptech companies through seed and pre-Series A stage fundings.
The program says it will invest in five to seven companies every year, claiming to have it “mentored” more than 55 startups since 2016.
The Indian Brand Equity Foundation (IBEF) released a report which found that the Indian real estate industry size is projected to reach $US 1 trillion by 2030.
This estimates a compound annual growth rate (CAGR) of 14.6% between the fiscal years 2017 and 2030, comprising 13% of the country’s GDP by 2025, according to the report.
Looking ahead, digital approaches are increasingly being used to tackle ongoing environmental and sustainability related goals and challenges. Along with this, proptech technology is being adopted throughout the real estate industry, converging with sustainability efforts due to the high percentage of carbon produced in the “built environment”.
Environmental sustainability
Proptech startups in India are aiming to reduce their carbon footprint and are adopting strategies that are environmentally sustainable. They are also focusing on making properties cost-effective, and attractive, using greener equipment and raw materials alongside waste and power management solutions.
The following startups are examples of Indian proptechs following this trend:
- WEGoT Utility Solutions, which developed an IoT-based water consumption tracking product that gets data on a real-time basis. Its mechanism has saved more than 5 billion liters of water until date.
- PotholeRaja is yet another proptech that focuses on making pothole-free roads, which is an ongoing issue in India. The startup has reduced 2040 tons of Carbon dioxide emissions with its eco-friendly model.
- Strawcture Eco, a proptech that converts agricultural wastes like “bagasse, paddy straw and wheat straw” into eco-friendly construction panels. It also “stored 6000 MT of carbon by saving 900 MT of straw from being burnt.”
Technology
Another trend that observed is proptechs’ focus on AI, robotics and other technologies in the design, construction and home maintenance sectors. Management of issues comprises air purification, potholes and marketing, among others.
Some examples include:
- PropVR which uses real estate visualizations and 3D applications,
- MetroGuild which takes a data driven approach to sales,
- IQ Next that uses IoT for smart building management),
- Snaptrude, an automation and Intelligent BIM-powered cloud-based collaborative building design (PropTech @REAP led the investments for this “oversubscribed” proptech),
- ClairCo working in air purification, and
- Reomnify that provides point-of-interest data to drive insights for real estate, retail, hospitality and insurance sectors.
Costs
Proptech startups are also saving money by using technology.
Since it is mitigating problems that stop companies from growing, investors and venture capitalists are eager to invest in this sector.
According to the Center for Real Estate Technology & Innovation 2021 Real Estate Tech Venture Funding Report, private investments in the propTech sector reached a record of $32 billion in 2021, a 28% increase from 2020.
It is increasing yearly by almost 36%.
In other recent proptech news, FinLedger spoke with Kyle Finney, the business development manager at Arize about amenities as a service in smart apartments, smart devices offering risk mitigation and driving NOI and what these mean for the multifamily industry today. KB Home also announced a series of single-family community openings, including Bristol in California, Woods Creek Highlands in Seattle and Copper Ridge in Florida.