Exclusive: Square Yards In Talks To Raise $100 Mn At A Unicorn Valuation In Pre-IPO Round

SUMMARY

The full-stack proptech platform is in talks with a couple of private equity firms to raise fresh funds at a valuation of over $1 Bn

The pre-IPO round will be a mix of equity and debt. Square Yards is looking to go public in FY26

The startup closed FY24 with a topline of INR 1,000 Cr and achieved EBITDA breakeven during the year, sources said

Delhi NCR-based proptech startup Square Yards is in talks with investors to raise around $100 Mn in a mix of equity and debt, sources told Inc42. However, they added that the funding amount could go as high as $120 Mn.

This will be the full-stack proptech platform’s pre-IPO round as it is looking to go public in the next financial year (FY26), the sources added.

Square Yards has initiated conversations with a couple of private equity (PE) firms for the fresh funding round at a unicorn valuation, the sources said.

“The pre-IPO round will help the startup associate with the right names and help it determine its valuation,” one of the sources said.

Square Yards last raised equity funding in 2019 from Bennett Coleman & Co Ltd (BCCL), Genkai Capital, among others, at a valuation of around $300 Mn.

The Kae Capital-backed startup is aiming to go public with a revenue of about INR 1,500 Cr.

While Square Yards is yet to file its financial statements with the Ministry of Corporate Affairs, the sources said it closed FY24 with a topline of INR 1,000 Cr and achieved EBITDA breakeven during the year.

The startup’s operating revenue rose 74% to INR 664 Cr in FY23 from INR 382 Cr in the previous fiscal year, while net loss grew 14% to INR 256 Cr from INR 225 Cr in FY22.

A query mail sent to Square Yards on the funding round, valuation, and IPO plans didn’t elicit any response till the time of publishing this story. The article would be updated on receiving a response.

Square Yards was founded in 2014 by husband-wife duo Tanuj Shori, an investment banker and IIM-Lucknow alumnus, and Kanika Gupta Shori, a Wharton alumnus.

The platform allows customers to search for homes for buying and renting, facilitates home loans, provides interior design and packers and movers service, among others. Square Yards also has a presence in the global market and claims that it gets more than 25% of its revenue from the Middle East, Australia, and Canada.

The sources cited above told Inc42 that Square Yards currently generates almost 86% of its revenue from its real estate portal and financial offering (Urban Money). Besides, it is also seeing healthy growth in other verticals such as interior design (Interior Company), and virtual reality platform PropVR.

It is pertinent to mention that Square Yards was earlier aiming to go public around 2021 and 2022 but deferred its plans due to market volatility.

Square Yards cofounders and top management currently hold around 55% stake in the startup. The startup competes with the likes of NoBroker, MagicBricks, 99 Acres, and Livspace.