2016, a year of consolidation for real estate tech sector

2016, a year of consolidation for real estate tech sector
15/10/2016 , by , in News/Views

For the Indian realestate tech sector, 2016 seems to be a year of consolidation with more buyout deals likely to be announced in the coming weeks, according to a report by startup research firm Tracxn.

The report says that the sector has already witnessed six acquisitions this year including the $100-million buyout of Commonfloor by classifieds portal Quikr. The other significant deals were PropTiger’s acquisition of Proprates and 3DPhy, MagicSpace by the Indiannetwork.in and Lifepad by Fellahomes.


2014 was a breakout year for India’s real estate tech startups in terms of funding, with $222 million secured in just 11 rounds. Despite a slump in the real estate market, close to 300 companies have emerged in this sector since 2015, with the pace of investment too picking up with $60 million invested in 20 deals ($61 million from 30 deal rounds in 2015), the report added.

Some of the most notable investment rounds by ticket size for the year were bagged by Nestaway ($30 million), Housing ($15 million), NoBroker ($10 million), DoorKeys ($2 million) and BHIVE Workspace ($1 million).

Co-working spaces

Co-working spaces have seen a spurt in formation activity since 2015, with close to 60 companies emerging till date in this sub-sector alone. In the year-to-date, around four companies in this sub-sector, including the likes of BHIVE Workspace, SpaceMunk, WiredHub and Qdesq, have secured funding. Delhi-based awfis is currently the most funded ($10 milion) player in this sub-sector.

Accel Partners (PropTiger, Commonfloor), Helion Venture Partners (Housing, Indiahomes.com), Tiger Global Management (NestAway), SAIF Partners (NoBroker) and Foundation Capital (IndiaHomes.com) were the most active investors in this sector, Tracxn said in its report.

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