Square Yards Likely To File DRHP For INR 1,500 Cr IPO In 2 Months

SUMMARY

The offer will include both fresh shares and offer for sale

In July 2021, it raised $25 Mn in growth financing from Hong Kong- based ADM Capital

In Q1FY22, revenue of Square Yards rose 50% year-on-year to INR 100.8 crore

Gurugram-based proptech startup Square Yards is eyeing to raise INR 1,500 Cr through an initial public offering (IPO) including both fresh issue of shares and an offer for sale (OFS).

The startup is expected to file its draft red herring prospectus (DRHP) with the market regulator SEBI within the next two months, said people in the know of the developments.

The integrated real estate startup has also finalised the investment bankers for the IPO, they added.

The startup, however, did not respond to queries sent by Inc42 till the time of publishing.

Founded in 2014, so far, Square Yards has raised $97.8 Mn. In July this year, it raised $25 Mn in growth financing from Hong Kong- based ADM Capital.

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

It was founded by husband-wife duo Tanuj Shori, an investment banker and IIM-Lucknow alumnus and Kanika Gupta Shori, a Wharton alumnus. The startup had raised its Series B funding in 2019.

Earlier this year, it acquired proptech startups PropsAMC, Azuro and PropVR.

Square Yards’ Financials

In the first quarter of FY22, revenue of Square Yards rose 50% year-on-year to INR 100.8 Cr. The gross transaction value (GTV) rose 80% over the year ago to INR 2,197 Cr. At 3,916 deals, the proptech startup also recorded an 80% year-on-year jump in property transactions.

The startup’s gross margins stood at 32% during the quarter.

Startup IPOs In 2022

The startup IPO scenario in the country is set to gain momentum in the coming year with 17 startups including Square Yards likely to go public in 2022.

Bigwigs in the Indian startup ecosystem likely to hit the public markets in 2022 include hospitality unicorn OYO, Bhavish Aggarwal-led mobility unicorn Ola and logistics major Delhivery, ecommerce giant Flipkart among others.

So far in 2021, nine startups have got listed on the stock exchanges, raising funds to the tune of $5.86 Bn. These include INR 43,678 Cr ($5.76 Bn) in the domestic market and $100 Mn by Freshworks in its US IPO.

Growing Proptech Space

Proptech 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.

The pandemic has further added to the demand and adoption of proptech services.

Last month Bengaluru-based real estate platform NoBroker became India’s first proptech unicron as it raised $210 Mn in its Series E round taking its total fundraising tally to $361 Mn. Led by existing investors General Atlantic and Tiger Global Management, the round also saw participation from US-based Moore Strategic Ventures.

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