HDFC Capital Advisors-backed property tech program gets 400 proposals

HDFC Capital Advisors-backed Real Estate Technology Innovation Program has received over 400 proposals from property technology start-ups seeking investment and hand-holding.

HDFC Capital Advisors, a subsidiary of mortgage lender HDFC, has raised over Rs 500 crore through global investors at the first close of its property technology fund. It would invest a part of this fund in companies participating in this program, said Vipul Roongta, MD & CEO of HDFC Capital.

The work on screening for proposals and shortlisting may end by the middle of next month. While the private equity player had indicated funding to at least three investment-worthy proposals, it may review the plan to scale up commitments.

HDFC Capital manages three funds combined to create a $ 3 billion platform targeting the development of affordable and mid-income housing in India.

There are about 75,000 start-ups in India but the tally of real estate start-ups is just about 800-900. Almost half of them have approached for support under the program.  

The program was flagged off in late September 2022 jointly by HDFC Capital and Invest India — the investment promotion agency of the government of India. The aim is to support disruptive innovations within the real estate ecosystem in the construction, sales, fintech, and sustainability tech verticals.

Currently, the construction industry is one of the least digitised sectors in the world – the real estate sector spends less than 1.5 per cent of its revenue on technology. However, there is now increasing recognition that technology can help to address issues that result in project delays.

"Proptech will drive efficiencies in construction & sales, payment & working capital management solutions and sustainable living", Roongta said.

Some of the proptech innovations include construction using drones for site selection, site survey, project monitoring, use of robotics in construction processes and IoT-based solutions for electricity generation. In the Fintech space, innovations cover supply chain solutions via online procurement and better working capital management.