Proptech Startup Square Yards Raises $25 Mn From ADM Capital

Indian integrated real  estate (proptech) platform Square  Yards today announced that it received $25 Mn (~INR 185 Cr) in growth financing from Hong Kong- based ADM Capital, a global investment manager with $2.4 Bn assets under management across Asia Pacific and Europe. 

Square Yards was founded in 2014 by a husband-wife duo of Tanuj Shori, an investment banker and IIM-Lucknow alumnus and Kanika Gupta Shori, a Wharton alumnus. It last raised its Series B funding in 2019. 

The current capital infusion serves as the first tranche of the company’s ongoing plan of larger growth capital raise of $100 Mn+ in the near term. Square Yards will use the capital to continue to expand and invest in various verticals across the value chain.

The Gurugram-based startup is a real estate aggregation and transaction platform which enables the complete lifecycle of owning and living in a home including research, due diligence, selling, financing and more. 

It recently acquired platform capabilities in rentals/property management, data intelligence and VR space and has also launched its full-service platform offering home furnishing and home interior services with the acquisition of startups like PropsAMC, Azuro and PropVR.

“ We have been fairly capital efficient since inception with a clear focus on delivering high ROI. With significant operational benchmarks met over the last 12 months, like profitability and pilot success of new  initiatives like rental and property management, home interiors, among others. We believe we are now at the cusp of an accelerated growth curve,” said Tanuj Shori, founder and CEO, Square Yards.

Square Yards also offers B2B SaaS services to real estate agents, property developers, banks and other financial institutions and is present across global markets like the Middle East, Australia and Canada.

Christopher Botsford, cofounding partner and joint chief investment officer, ADM Capital, said, “Square Yards’ extensive customer and partnership network, capable sales team and market leading fully-integrated software uniquely positions it for success in an industry poised for growth. We are also pleased with the company’s willingness to enhance its environmental and social  policies and given ADM Capital’s proven ability to mitigate ESG risks and improve borrower governance, are available to share our expertise.”

ADM Capital first entered the Indian market in 2004 and has since disbursed in excess of $670 Mn across 18 private financings.

PropTech In India

Proptech is a term that refers to the application of digital technologies in the real estate industry. Its scope includes everything from project design and construction management to new construction materials and technology, from innovative financing mechanisms to property management and from property registration to escrow services.

The proptech sector in India is fuelled by rapid urbanisation and rural migration to cities. India has one of the largest number of proptech startups in Asia-Pacific. In recent times global 3D software modelling giant Autodesk has acquired Indian construction software startups like Pype and Manufacton. 

Globally the proptech industry has been moving to integrated plays. Leading players like Zillow, Beike and Compass are creating an integrated digital consumer experience in all parts of the transaction, on both the buy- and sell-side which enable them to capture more of the transaction.