PE investments in proptech companies went up by 35% to $741 mn: Report  

Private equity investments in proptech companies went up by a whopping 35 per cent to $741 million during 2021. Average deal size of PE investments in proptech went to an all-time high of $25 million in 2021 on growing investor confidence, according to a report titled 'PropTech India Monitor 2022' by digital real estate firm Housing.com.  

The report further stated inflow of funds into proptech firms stood at $551 million in 2002, while adding the industry received total private funding worth $3.2 billion between 2009 and 2021. Moreover, private equity investments in proptech firms grew at a compound annual growth rate (or CAGR) of 55 per cent since 2010. 

Tech firms doing sales and marketing and providing construction technology had 69 per cent of the total $741 million investments received during 2021. Share of construction technology in total PE investments stood at 36 per cent whereas proptech firms dealing in sales and marketing got 33 per cent of the total PE investments last year.   

These sectors were followed by proptech firms in co-working and co-living (13 per cent), shared economy (14 per cent), interior design services (11 per cent), furniture rentals (3 per cent), property management (2 per cent) and virtual reality (1 per cent).  

"The pandemic has definitely turned out to be a crucial turning point for the proptech space in India. Like many other sectors, real estate managed to leverage the digital acceleration witnessed during this period. The adoption of new age technologies such as artificial intelligence & machine learning, virtual & augmented reality and blockchain has opened-up new opportunities for start-ups and prop tech,” Group CEO of Housing.com, PropTiger.com and Makaan.com Dhruv Aggarwala said.  

Investments tracked for collating this report are private equity, venture capital, debt, private investment in public entities (PIPE), project level investments and pre-IPO private equity deals at early, growth and late stages.