Top 10 Proptech Companies In India In 2023
Proptech is currently everyone’s favorite buzzword. It is frequently referred to as the new disruption force and innovation driver, as well as the modern solution for real estate professionals who are burdened by mountains of paperwork and a high-yield asset class for investors looking for novel investment opportunities.
Today’s businesses and industries are incredibly reliant on technology. Along with other causes including increased urbanization, digitization, and the rise in disposable incomes, technology has been a key driver of this trend.
Technology development has opened up a wide range of opportunities in numerous businesses and areas. Virtual reality and artificial intelligence are merely the tips of the technological iceberg in terms of how far we have come. The real estate sector is not exempt from technological changes. The paradigm change affecting the global real estate market has also had an effect on the Indian real estate market.
Proptech: What Is It?
Proptech is the collective term for all the technical resources used by real estate experts to speed up the process of purchasing, selling, researching, marketing, and managing a property. These cutting-edge technologies are also known as Real Estate Tech, Retech, Realtech, and CRE Tech, depending on whose perspective you’re seeing through. Proptech always alludes to a close integration of real estate and technology, but that is only the beginning.
Investment platforms that connect retail investors with real estate assets or property management platforms that manage residential, commercial, and retail properties are two examples of disruptive technologies in the real estate industry.
Consider your most recent vacation spent in a lovely Airbnb apartment or a boutique hotel, which you chose from among many other stunning locations generously listed on the platform – and at a much lower price than you would have paid for a hotel in the same area. If property technology seems somewhat remote from the individual consumer. If this resonates with you, you have witnessed personally how technology has transformed the real estate sector.
Together with Zoopla, Causeway, and Purplebricks, they all once took the risk and combined century-old technology with real estate, just as Uber has altered the transportation industry. By far, Airbnb is one of the first proptech tech startups challenging the real estate industry.
The PropTech sector
The greatest asset class in the US is real estate, and as a result, the sector is always experiencing new developments. The real estate industry innovates and modifies its initiatives to meet demand, from coworking to coliving. Since 2014, the PropTech sector has been clearly exhibiting robust growth. According to a report from RE: Tech, venture capital investments began at 186 million USD globally in 2011 and increased to 2.67 billion USD by 2016 and 12 billion USD in 2017. According to MetaProp’s Mid-Year 2018 Global Proptech Confidence Index, “Ninety-six percent of investors plan to make the same or more PropTech investments over the next 12 months.
Pandemic effects on PropTech
Although the U.S. PropTech industry has developed and grown over the past several years, the Coronavirus epidemic would have had a considerably greater impact on the real estate market. Since the epidemic began, brand-new tools have been developed for locating and learning about possible properties. The platforms enable purchasers to follow each step of a real estate purchase transaction from the comfort of their homes.
This market will most certainly experience a significant increase in the near future given the increased use of technology in the home buying process, including virtual reality, drones, big data, and artificial intelligence. It is clear that the nation’s real estate industry will reach $1 trillion in sales by 2030.
The value of the real estate brokerage industry in India is projected to be $1.4 billion, or $1,400 million. The data from Housing.com states that the majority of business is done offline. Additionally, it is evident that PropTech has developed in India because more than half of all purchasing decisions are now made online, even though the final transaction still takes place offline. There will be one billion internet users by 2025, creating a significant opportunity for businesses in this sector.
Due to technology’s multiple ways of transforming the sector, all stakeholders are creating greater opportunities.
Cost-effectiveness boosted by technology
The sector benefits from technology in terms of cost efficiency as well. Industry players have much better control over expenses by implementing new tools. It is now easier to take charge of the costs. As a result of cost optimization, they are able to charge their clients lesser prices for their homes.
Ten years ago, the industry could not have envisaged using technology to complete its tasks. Real estate is becoming more transcendent as a result of technology and a new level of professionalism. Along with producing high-quality work and completing projects on time, developers can change the way that customers are treated. Companies will use more technology as it continues to advance and become more efficient.
The effects of PropTech on the real estate sector
A PropTech business employs technology to boost real estate transparency, lower friction, and improve asset returns. But compared to other industries, the real estate sector has not adopted technology as quickly.
Real estate is going through a paradigm transition as a result of AI and the rollout of 5G, which threatens to upend the entire RE value chain. The COVID pandemic has caused investments in PropTech to keep growing.
Real estate companies are motivated to investigate digital investment opportunities and work with PropTech for a variety of reasons, which ultimately causes the balance of power in the industry to shift from conventional developers to higher-achieving and more technologically advanced New Age Real Estate Companies. An effort has been made to get a glimpse of how PropTech is changing the real estate industry.
Development
Early decision-makers in the real estate development sector blended their intuition with established facts, such as occupancy rates or property prices. Developers now have access to previously inaccessible data thanks to advances in big data analytics and the drive to build Data Lakes. -Nontraditional data sources can be used to find regional trends, such as traffic data gathered from GPS devices.
The planning, building, operation, and use procedures for real estate developments in the future will all be heavily influenced by Internet technology from the outset. Construction has always been at the forefront of innovation, creating structures that are stronger, taller, more energy efficient, safer on the job sites, and more productive for workers. Due to the rapid development of new technologies nowadays, investors and construction industry professionals are paying close attention to it.
Formulating & Design
It will be simpler to construct intelligent wearable devices with increasing bandwidth availability. IoT’s expanding adoption offers information into how spaces are used and utilities are run. The installation of substantial data centers and the micro antenna networks necessary for 5G networks will likewise influence future building designs. The ability to measure wellness using new technology will also have a big influence because it goes beyond energy conservation.
Construction
Construction has one of the lowest levels of digitization internationally despite being one of the most labor- and resource-intensive industries. With better quality and unheard-of speeds, robotics and 3D printing will change the building sector. Drone utilization will advance present technology.
Customer Experience
Interactions between many individuals in a non-digital process are referred to as digital customer experiences. Augmented reality, virtual reality, and bot technologies will be used to improve and replace these encounters. Technology has drastically changed this procedure, offering users access to tools that help them browse apartments, houses, businesses, and hotels online with the press of a mouse.
The process of buying and selling houses has been made simpler by proptech. While sellers can advertise their properties instantly, buyers can search and compare a wide variety of properties. The renting procedure and banking transactions have both undergone improvements of a similar nature.
The introduction of augmented and virtual reality as well as advances in bandwidth will fundamentally alter the consumer journey and offer never-before-seen convenience and transparency.
Ownership
Blockchain will change real estate by enhancing and removing different inefficiencies. With the help of blockchain technology, an object’s ownership can be completely tokenized, allowing it to be “split” and bought in smaller digital quantities. Additionally, there is a chance that blockchain technology will lessen fraud and boost transparency. Most people cannot access investment real estate since it involves a significant amount of money, knowledge, and effort.
This problem has been addressed by businesses offering cutting-edge real estate investment services by giving investors the chance to purchase “shares” in a building or real estate project as well as other tools, platforms, and support services to increase transparency, efficiency, and accuracy throughout the entire investing process. We witnessed C2C equity lending platforms earlier this year that opened up new investment opportunities by bringing together lenders and borrowers while giving banks an additional or alternative method of funding enterprises. Loans obtained through these platforms may be used for investment, construction, or remodeling projects by both small businesses and significant institutions.
Property Administration
In the real estate sector, there are substantial structural changes occurring in how landlords provide services to tenants. In the past, landlords only collected rent, but they are now providing more services. Property as a Service, in which the renter is relieved of all administrative and overhead tasks and is provided with a customized property service, is becoming more and more popular. This novel idea is changing the way we live, work, and shop. PropTech solutions strive to assist property owners and landlords manage their assets more effectively, swiftly, and flexibly by creating goods and services that will help people save time, and money, and make their lives more affordable.
Why do we create PropTech?
Numerous other industries have been transformed by technological progress. Consider services like Uber, Airbnb, Opendoor, Seamless, and so on. The real estate sector can and can reap the same rewards as other sectors, including improved consumer experience, streamlined efficiency, and simplified operations. Traditional real estate has a number of challenges, including the following:
- Unaffordability (supply-constrained) (supply-constrained)
- Arduous manual leasing and payment procedures
- Not being flexible
- Inadequate community
With PropTech, businesses are attempting to address these issues, give each step of the procedure a cutting-edge edge, and breathe new life into outdated systems.
How widespread is real estate technology change?
Although Common is not a startup in the PropTech space, we are unusual in that we incorporate PropTech into our operations while simultaneously developing new, cutting-edge technologies with the help of our in-house Dev team. We can increase real estate market efficiency with the help of these technologies, improve the leasing experience for our members, and provide our employees with the tools they need to be better property owners. Examples of PropTech we use:
- For a lease guarantee and no security deposit, use HelloRented or Obligo.
- For any property issues, use the online ticketing system.
- Join via the Common App (event RSVP, directory, live chat, perks)
- Virtual travel (Matterport)
- To sign leases, use Docusign
We must continuously innovate, scale, and grow if Common is to serve 700+ members across the nation. We are able to achieve it thanks to PropTech.
A Synopsis of the History and Impact of Proptech
Proptech has been developing for many years, despite its more recent surge in popularity. According to Forbes, real estate organizations started looking for more effective ways to handle investment and portfolio management in the 1980s, which is when proptech first appeared on the tech scene. While Excel had long been used in the real estate sector, software providers began looking for fresh approaches to problems like underwriting and analytics, opening the door for innovations in the housing market.
The early 2000s saw a turning point in the development of proptech as internet usage soared and tech firms started to influence the future of online commerce. During this time, real estate technology firms like Zillow, Redfin, and Trulia developed and made names for themselves as leaders in the proptech industry. These types of businesses viewed the housing industry as a hub for disruption, which sped up and greatly enhanced the development of proptech.
Proptech company launches started to decline around 2014, however, since 2012, these businesses have steadily increased their fundraising. Startups and IT firms from all across the nation have profited from this capital-rich industry over the past ten years, overcoming obstacles in the residential, commercial, and industrial sectors.
According to a Deloitte analysis, global proptech companies raised $43 billion between 2012 and 2020. In an effort to recoup from the effects of COVID-19, fundraising reached a record high in 2021 as the sector transitioned toward a rising reliance on technology.
According to a 2021 year-end survey by MetaProp, 96% of proptech investors feel the pandemic has accelerated the adoption of new technologies, and 85% of respondents said the companies in their portfolio are growing their client bases at or above projections.
To help you have a better understanding of this thriving and fast-paced industry, we’ve gathered the best proptech businesses.
Future Trends in Proptech
As there is a growing need for information about house buyers and sellers, proptech startups and established real estate players are progressively closing the information gap. Whatever the specifics of the current trends, all of them have the potential to improve the consumer experience. Here are a few instances:
- Artificial intelligence and data automation in the real estate
- Big data and the digitization of property data
- Constructing and maintaining with environmentally friendly methods
- With IoT and IIoT, drones can offer 360-degree views.
- Chatbot-based automated client support
- Technology that enables property owners to operate more luminous stores
Indian real estate is ultimately implementing and favorably incorporating these improvements for developers, brokers, investors, and consumers, despite initial hostility towards the ongoing changes.
Indian consumers seek comprehensive Lifecycle Support from Proptech businesses, including details on buying and selling data, in order to make long-term decisions with accuracy.
The Top 10 Indian PropTech Startups:
- Magicbricks
Founded in: 2006
Office location: Noida, Uttar Pradesh
$300M was obtained in funding
Property buyers and sellers in India can look for and enquire about homes using Magicbricks. The website’s Property Pulse section offers information on real estate, mortgages, taxes, and legal issues as well as professional comments and trend analysis. A real estate ebook called “Buyer’s Guide” describes the critical procedures and phases of purchasing a property. It offers short hints, seasoned counsel, and solutions for what to search for and how to manage the process. Currently, investors and buyers of real estate in select important locations can use the PropIndex service to track changes in supply and pricing trends for residential apartments in India.
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NoBroker
Founders: Amit Agarwal and Akhil Gupta
year of founding: 2014
Received funding: US$214.5M
The peer-to-peer property listing platform offered by NoBroker helps to increase the efficiency of real estate transactions. Customers may discover and buy homes using the NoBroker site without paying brokerage fees, and they can sell homes without receiving commissions.
- Infra.Market
Founders: Souvik Sengupta and Aaditya Sharda
year of founding: 2016
Thane, Maharashtra, is the headquarters.
Received funding: US$161.5M
The online building materials market operated by Infra Market offers both real estate and construction materials. Through a centralized platform that recognizes clients’ needs and matches them to its supply chain along with appropriate credit alternatives, it offers clients fair pricing and a superior technical experience.
- NestAway
Amarendra Sahu, Deepak Dhar, Jitendra Jagadev, and Smruti Parida are the founders.
Established in 2015
Received funding: $104.2M USD
Online reservations for rental properties are possible on the NestAway marketplace. The location filter can be used by users to register and search for properties. They can secure properties through the website as well. Owners must give the location, images, costs, and regions when listing their properties. There are different apps for iOS and Android.
- Livspace
Anuj Srivastava, Ramakant Sharma, and Shagufta Anurag are the founders.
Year of founding: 2014
Received funding: $101.7M USD
Livspace offers designers, services, and home furnishings. Through the online purchasing platform, customers may choose ideas for their dream homes as well as furnish them. There are additional services for home interiors. A platform specifically made for the interior design sector is called Canvas. Homeowners will have a distinctive experience, whereas interior designers’ jobs will be simpler.
- PropTiger
Dhruv Agarwala, Kartik Varma, and Prashant Agarwal are the founders.
Founded in 2011
Administration: Gurgaon, Haryana
Received funding: US$ 85M
The founders of PropTiger, who are former students of Harvard Business School, IIT, and ISB, have years of combined real estate expertise in both India and abroad. In India, real estate professionals can be found in Noida, Gurgaon, Mumbai, Pune, Bangalore, Chennai, Kolkata, and Ahmedabad. Members of the workforce are knowledgeable about many elements of buying residential real estate. The expert will assist you throughout the entire process, from reducing your alternatives to locating the best home for you and concluding the papers required to close the sale.
- Yard squares
Founders: Tanuj Shori and Kanika Gupta
Founded in 2013
Administration: Gurgaon, Haryana
Money received: 73M USD
Square Yards, a real estate platform, offers aggregation and transactional technology. Square Capital, Square Connect, and Square Marketing Technology are among the products offered by Square Yards. Square Capital, a digital lending platform, provides loans to both consumers and companies. A distinctive mobile aggregation platform called Square Connect is available to real estate brokers. Brokers now have more direct access to property listings because of this platform. Square Marketing Technologies, often known as SquareMartech, is a Full-Service Digital Marketing Agency.
- Living Stanza
Founders: Sandeep Dalmia and Anindya Dutta
Year of Inception: 2017
Administration: New Delhi
Money received: $70.2 million USD
The tech-enabled co-living area at Stanza Living is available to students and working professionals moving to a new city. It offers a high-quality, shared living model that places the new-generation immigrant at the center of the development, design, and implementation process in order to alter India’s multi-billion dollar student housing and co-living sector. The business claims to be India’s largest startup for shared housing with 55,000 beds managed across 14 locations.
- Furlenco
Entrepreneurs: Ajith Karimpana
Founded in 2012
Karnataka’s capital is Bengaluru.
Money received: 69M USD
Furlenco offers customers a subscription-based platform that allows them to rent furniture each month. Startups have appeared that provide excellent furniture that is accessible, affordable, and versatile enough to be switched out as needed by customers.
- Settlin
Ashish Srivastav and Sudhanshu B
Year of founding: 2016
$30M in funding was received.
At the very end of the resale value chain lies Settlin, a technology-driven, scalable, buyer-centric real estate transaction platform. With this online-offline-online paradigm, a consumer can browse 4 times as many properties online, offline, and online, filtered with 80 factors, and close the sale in 5 visits. The user is guaranteed, through its legal aid, to complete the sales deed and registration in four months, which is 50% less time than the industry standard. Through a pay-per-visit arrangement, 15 greeters have accrued 4000 visits over the past year.
AIMING FOR WHICH REAL ESTATE PROFESSIONS IS PROPTECH?
Therefore, it is now fairly obvious that the emergence of PropTech poses a danger to all segments of the real estate market. In the management of rental properties, The Guarantors or SMS Assist is making strides; in real estate sales, TenX, OpenDoor, or Purplebricks; in commercial real estate, VTS; in real estate construction, Habiteo; etc. These are only a handful of the examples I used to make my argument; there are many more startups in each industry. No industry is exempt.
But there is a clear distinction between new and old construction. Numerous startups are set up to displace and replace professionals in the real estate market. Startups, on the other hand, typically serve as intermediaries or as vendors of high-tech tools for developers when it comes to new buildings. That is, for the time being.
In addition, new trends are appearing in every area of the real estate market: co-working is upending the office space market, co-living is presenting fresh options for residential property, crowdfunding is changing new development and real estate investing, and home swapping is becoming more and more common for seasonal rentals. Along with traditional vocations in the real estate sector, several new occupations have also emerged. Examples include drone pilots, experts in virtual home staging, and data aggregators. Additionally, you can expect that brand-new concepts to completely or partially revamp the real estate sector are being proposed once every five minutes.
These forces are inspiring business owners and innovators to consider diverse parts of the market and to launch firms that cater to very particular demands.
REAL ESTATE PROFESSIONALS: HOW SHOULD THEY RESPOND TO PROPTECH’S GROWTH? WHAT SOLUTIONS ARE AVAILABLE?
Overall, it’s a pretty simple process. It starts with the acceptance that change is genuine, unavoidable, and will occur whether or not real estate specialists are involved. But there’s no need to be afraid of change; all you have to do is accept it and carry on serving your clientele, both present, and future. Here are some pointers to aid you in your journey:
Keep up with industry news by often visiting specialized websites. Your capacity to predict market developments and meet your customers’ requirements wherever they may be will improve the more knowledgeable you are.
Invest in marketing resources and equipment to keep up with the latest technological advancements.
Try this: You’re in luck. You work with current clients and spend every day in the field. Test out fresh strategies to see which ones work best.
Innovate: Each week, devote at least two hours to considering ways to enhance your workflow or client happiness. This will guarantee that you stay competitive in the market regardless of what PropTech-related developments occur.
Work on adding value; this is essential. Try responding to the following query: “Why do clients come to me? Once you’ve come up with the answers, be sure to regularly execute them so that they won’t want to look elsewhere.
Keep in touch with your customers and go above and above. As for feedback, ask your customers. Do they think you’d be a good fit for their friends? why not Serving your clients’ requirements is the best method to increase client satisfaction.
Keep up with the younger generations by being aware of their shifting consumption habits and remaining open-minded. The customers of tomorrow are younger generations.
