Funding in proptech players dips 3% to $719 million in 2022: Report | Mint
Active Stocks
Tue Feb 20 2024 15:54:00
  1. Power Grid Corporation Of India share price
  2. 287.95 4.16%
  1. HDFC Bank share price
  2. 1,453.75 2.59%
  1. Tata Steel share price
  2. 141.05 -0.60%
  1. NTPC share price
  2. 345.65 2.01%
  1. ITC share price
  2. 406.05 -0.77%
Business News/ Industry / Funding in proptech players dips 3% to $719 million in 2022: Report
BackBack

Funding in proptech players dips 3% to $719 million in 2022: Report

Proptech players has witnessed a cumulative investment of nearly $4 billion between 2009 and 2022, boasting an impressive compounded annual growth rate (CAGR) of 49%.

Funding in proptech firms marginally declined from $742 million in the previous yearPremium
Funding in proptech firms marginally declined from $742 million in the previous year

New Delhi: Despite global economic uncertainties and a funding winter seen in the startup sector at large, investments in proptech firms dipped by a mere 3% to $719 million in 2022, according to a report by Housing.com.

The report highlights that the sector has witnessed a cumulative investment of nearly $4 billion between 2009 and 2022, boasting an impressive compounded annual growth rate (CAGR) of 49%.

Funding in proptech firms marginally declined from $742 million in the previous year, but certain segments within the industry drew substantial investor interest. Shared economy platforms, including co-living and co-working, secured the majority share, accounting for 64% of the total fund inflow. Investors have shown great confidence in these segments, considering their perceived growth potential.

Additionally, PropTech players offering construction technology solutions received 15 per cent of the total funding in 2022. This trend reflects the real estate developers‘ increasing emphasis on reducing construction times while maintaining high-quality standards. In countries like India, where extended construction cycles inflate project costs, PropTech solutions are increasingly being leveraged for effective project management.

Dhruv Agarwala, Group CEO of Housing.com, PropTiger.com & Makaan.com, said, “Investments in the PropTech space remained stable throughout 2022, even amidst global turmoil. The real estate sector has made significant strides in adopting innovative technologies over the past decade, especially in the last three years. The covid-19 pandemic and subsequent lockdowns served as catalysts, accelerating the adoption of technology across the industry."

Despite facing challenges during the pandemic due to temporary closures of schools and colleges, the co-living segment made a remarkable recovery with the reopening of educational institutes and offices. Co-living operators that withstood the pandemic storm experienced a V-shaped recovery, witnessing substantial demand for superior quality rental accommodations.

The report encompassed various investment deals, including debt, private investment in public entity, PE investments in special purpose vehicles (SPV), project-level investments, pre-IPO PV deals, and buyouts. Deals with undisclosed amounts were excluded from the analysis to maintain transparency.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Industry News, Banking News and Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 01 Aug 2023, 06:08 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App