The raised capital is the first tranche of the $100-million funding that Square Yards is set to raise in the near term, the company said in a news release. The proceeds will go towards expansion and investment into various verticals across the real estate value chain.
Commenting on the funding, Tanuj Shori, founder and CEO of Square Yards, said: “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, etc., we believe we are now at cusp of an accelerated growth curve. And with a strong institutional partner like ADM Capital, we believe we can now aggressively push towards brand and personnel investments to achieve a much faster trajectory.”
Investor ADM Capital manages assets worth $2.4 billion across Europe and the Asia-Pacific. India-based businesses account for nearly $670 million of the total investments. Commenting on the investment into Square Yards, Christopher Botsford, co-founding partner and joint chief investment officer of ADM Capital, said that 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 pleased to support Square Yards in its pursuit of scale and will continue to seek opportunities to support Indian corporates attempting to digitally disrupt traditional industries. 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, we are available to share our expertise,” Botsford added.
The latest round takes Square Yards’ total equity funding till date to $75 million. The company has also raised $25 million in debt funding. It was recently in news following the launch of its new segment for interior design services. The new service is part of Square Yards’ strategy to create an integrated real estate platform that offers end-to-end real estate services, including search and discovery, online rental agreement, and interior design.
Despite the pandemic-induced downturn in the Indian real estate ecosystem, Square Yards managed a 17% year-over-year growth in revenues for FY20-21. The successful fiscal year also saw the company make strategic acquisitions, including PropVR, a 3D visualization platform, and PropsAMC, a data and property management platform.
Founded in 2013 and headquartered in Gurugram, India, Square Yards is an integrated real estate platform with market footprint in Australia, Canada and the Gulf. The company boasts an extensive network of 500+ real estate developers, 150,000+ agents and 100+ banks and NBFCs.