The funding round saw participation from marquee names such as HDFC Capital, Oberoi Realty and Anarock
HDFC made the investment through its HDFC Affordable Real Estate and Technology Program (H@ART)
Homexchange claims to have executed transactions worth about INR 120 Cr so far
Proptech startup Homexchange has raised $4 Mn in a funding round that saw participation from marquee names such as HDFC Capital, Oberoi Realty and Anarock.
The Mumbai-based startup will use the funding to expand its footprint and to shore up its technology platform. The startup will also invest in developing partnerships and ramping up hiring across multiple verticals.
“We’re a consumer-focused brand that brings customers, developers, channel partners, and lenders into a certainty-driven transactional environment. That is the big opportunity in a sector with $100 billion in transactions annually and is growing,” Homexchange chairman and cofounder Shirish Godbole said.
Homexchange, founded in 2020 by Shirish Godbole and Jesal Sanghvi, allows consumers to exchange their old property with a newer one. The startup is currently operational in Mumbai, Thane and Bengaluru.
HDFC Capital made the investment via HDFC Affordable Real Estate and Technology Program (H@ART). According to the company, the H@ART initiative seeks to mentor, partner and invest in proptech companies to bring efficiency, transparency, and trust in the real estate ecosystem.
Homexchange claims to deploy proprietary algorithms and models to gauge the price of a property and then makes a counter offer to customers. This offer can then only be redeemed against properties listed on Homexchange’s platform. The startup charges a 2% service fee on the offer price on all deals done on its platform.
The proptech player claims to have executed transactions worth about INR 120 Cr so far and has partnered with big names such as L&T Realty, Rustomjee, Oberoi Realty, Puravankara, Assetz, among others.
According to a report by the Confederation of Indian Industry (CII) and Colliers, investment in the proptech space is expected to zoom to $1 Bn by 2025. This is part of the larger growth trend in the Indian real estate sector, which is expected to soar to $1 Tn market size by 2030 from $200 Bn in 2021.
While Homexchange has no direct competitor, it competes with players such as Ivy Homes, Makaan, Magicbricks and others in the digital real-estate sale market.
Earlier today, proptech startup PropReturns raised an undisclosed amount of investment from a clutch of investors, including CRED’s Kunal Shah. Earlier this month, BuildNext raised $3.5 Mn via equity financing as part of its pre-Series A round led by Madhumala Ventures.
Last month, Bengaluru-based PropShare raised $47 Mn from WestBridge Capital and Pravega Ventures. Prior to that, another such startup Ivy Homes raised $7.05 Mn via equity and debt in a seed round.
