Highlights
Proptech Sector Recovery in 2024
The proptech industry experienced a significant resurgence in 2024, with funding reaching $416.49 million following several years of decline. Leading players such as Oyo, HomeLane, and Rentomojo were at the forefront of this fundraising surge. Established companies including Oyo, WeWork India, and Livspace continued to dominate revenue generation. Domestic and international investors, including AC Ventures, Accel, and Blume Ventures, played a crucial role in driving innovation within the sector.
Year-on-Year Funding Trends
Funding patterns in the proptech sector have seen considerable fluctuations in recent years, reflecting broader market trends and investor sentiment:
- In 2021, the sector attracted a substantial $1.31 billion.
- Funding sharply decreased to $632.5 million in 2022.
- Continued decline in 2023 saw funding drop to $122.81 million.
- By 2024, there was a notable recovery, with funding bouncing back to $416.49 million.
Top Fundraisers of 2024
During 2024, several companies emerged as leading fundraisers:
- Oyo: $175 million
- HomeLane: $27 million
- Rentomojo: $25 million
- Anarock: $24 million
- Amber (global student housing): $21 million
- Smartworks (co-working space): $20.24 million
- EPACK (turnkey solutions for pre-engineered buildings): $20 million
- Stanza Living (managed accommodation): $13.21 million
- Guardians (real estate): $12 million
- Incuspaze: $8 million
Financial Performance of Leading Proptech Companies in FY24
In FY24, Oyo achieved the highest operational revenue of Rs 5,388.79 crore. It was followed by:
- WeWork India: Rs 1,665.14 crore
- Livspace: Rs 1,185.73 crore
- Smartworks: Rs 1,039.3 crore
Other companies that made it to the top 10 revenue-generating firms include Square Yards, Awfis, IndiQube, SILA, HomeLane, and Simpliwork.
Profitability was also a significant achievement for many startups. Oyo reported a profit of Rs 229.58 crore, primarily due to Rs 453 crore income from exceptional items, which included a fair value gain of Rs 240 crore from the acquisition of OYO Hotels Cayman, as well as the reversal of a financial liability of Rs 249 crore. Isprava, a real estate solutions provider, posted profits of Rs 62.71 crore, while Anarock reported Rs 44.94 crore.
Conversely, Livspace faced the highest losses, reporting Rs 413.82 crore. IndiQube, Housing.com, and WeWork India also experienced losses. Nevertheless, these firms are actively implementing economies of scale and cost-cutting measures to reduce losses year-on-year.
Leading Investors in Proptech Startups
2024 saw considerable investments from various domestic and international venture capital firms, marking an increased interest in proptech solutions. Notable investors included:
- Z47 (Matrix Partners)
- Accel
- Inflection Point Ventures (IPV)
- Blume Ventures
- Capria Ventures
- Chiratae Ventures
- Gruhas
- AC Ventures
- Singularity Ventures
- Stellaris Venture Partners
- Peak XV’s Surge Ventures
These investors actively supported a diverse range of tech companies, including Accacia, Stanza Living, HouseEazy, Wify, Rentomojo, Settl, Furnishka, Flaer, Nestasia, ELIVAAS, Aeria, Trampoline, The Quorum Club, Homversity, Jugyah, Truva, and Vaaree.
Consolidations in Proptech
The proptech sector witnessed three significant merger or acquisition deals in 2024:
- Oyo acquired G6 Hospitality, the operator of Motel 6 and Studio 6, for $525 million.
- Oyo also purchased the Paris-based premium rental homes company Checkmyguest for $27.4 million.
- HomeLane announced its intention to acquire DesignCafe, a leading player in the home interior market.
Race to IPOs
Awfis became the first Indian co-working startup to go public, marking a significant milestone for the industry. Smartworks has made strides by obtaining SEBI approval for its proposed IPO. Reports indicate that several other proptech companies, including WeWork India, Simpliwork, Table Space, DevX, and IndiQube, are preparing for public offerings, while Oyo and Pepperfry are awaiting favourable market conditions. It is expected that the co-working sector will lead in the IPO landscape within the Indian startup ecosystem.