DealmakingM&A / FundingProptechReal Estate Tech

CREDAI and Venture Catalysts to set up $100M proptech fund

The fund will invest in real estate startups focusing on technology, data analysts, AI, AR and blockchain.

A partnership between The Confederation of Real Estate Developers’ Associations of India (CREDAI) and Venture Catalysts, a startup incubator, is set to establish a $100 million proptech fund, according to a press release.

The aim of the fund is to invest in real estate startups focusing on technology, data analysts, AI, AR and blockchain. Startups working in residential, commercial, institutional and industrial real estate segments come under the ambit of the fund.

The fund aims to support the digital advancement initiatives undertaken by the Indian government, including ‘Make in India’ and ‘Techade’ in the real estate industry, estimated at around $300 billion. This is projected to cross $1 trillion by 2030, according to a report by the Indian Brand Equity Foundation (IBEF).  

CREDAI president Harsh Vardhan Patodia says the venture will align with the Indian prime minister’s chants of “Make in India” and help the country emerge as a “startup hub.”

“Make in India”, on the other hand, has garnered criticism from analysts as a failed enterprise, owing to a heavy reliance on foreign capital.

“With the rapid development in the proptech domain, the use of AR/VR or AI to help homebuyers expedite the process of closing deals will help provide developers with better liquidity as the processes gradually become more efficient, resulting in enhanced asset returns, decreased friction and increased transparency,” Patodia said in the statement.

The statement states the company will also give startups access to its network base of more than 13,000 members belonging to 256 industrial fields in the real estate industry, including developers, vendors, channel partners and promoters. It also promised to provide mentorship to portfolio startups.

Venture Catalysts is also investing in real estate startups like OYO, Basic, Grexter, Sharenest, Home Capital and Rentomojo, among others.

President-elect of CREDAI, Boman Rustom Irani, told Economic Times that 5G internet is a platform for entrepreneurs to “disrupt” and overcome challenges in the real estate industry.  

“We are witnessing a revolution as we marked a 15,400% increase in the number of startups as it rose from 471 in 2016 to 72,993 by June 2022,” Irani said in a statement. “While there has been a remarkable rise in the number of startups, it is integral to support the growth of these innovators to help drive the growth of the sector and even the nation.” 

Proptech companies in India are limited to residential markets like MagicBricks, NoBroker, 99Acres,, and the like. However, technology caters to “all the important aspects of real estate — right from searching for a residential property to helping technology plan large industrial spaces,” says Anuj Golecha, co-founder of Venture Catalysts.

According to Golecha, real estate was one of the few sectors that adopted technology before the COVID-19 pandemic. “However, post COVID era, this adoption has further increased to boost sales and experience both and hence there is a need for a dedicated fund that would help propel growth in the sector,” he added.

In other recent proptech news, The National Multifamily Housing Council (NMHC) appointed Sharon Wilson Géno as its president-elect, effective October 11. Arrived Homes, a real estate crowdfunded investment platform allowing ownership of single-family rental properties, will expand into short-term vacation rentals.

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