Tech Areas That Will Attract Funding
STAGNANT PROPERTY PRICES, NEED FOR GREATER CONSUMER CONNECT AND TO DRIVE OPERATIONAL EFFICIENCIES, REALTY PROFESSIONALS HAVE BEEN ADOPTING PROP-TECH AT A FEVERISH PACE OVER THE LAST FEW YEARS. LET’S TAKE A LOOK, WHAT WILL BOOST MORE INVESTMENTS IN 2021?
If the trends are any indicator, the funding for prop-tech companies will continue to rise in 2021 ensuring that the coming years will be witness to experimentation with newer technologies by the start-ups. For instance, AGNIi programme of the Office of the Principal Scientific Adviser to the Government of India, helps commercialise Indian technological innovation. Harshan V.V, Assistant VP, AGNI Mission, Invest India explained that the primary objective of this mission is to help innovators and early start-ups to gain access to commercialization opportunities. “Across sectors we are trying to develop India’s capabilities for innovation and also to meet the goals of Atmanirbhar Bharat.”
Similarly, 100X.VC, the first VC to invest in early stage startups using India SAFE Notes works closely with startups helping them get to the next round of funding and beyond. Ninad Karpe, Partner, 100X.VC was of the view that with the increasing real estate demand, there is also a rise in need for finding the organised ways to cater to each and every demand. “Customer interaction and peripheral aspects like accounting, managing assets are basic steps to complete an asset deal where technology can be a great support.”
Sumeet Sharma, Global Contracts Director, Workplace Services, Capgemini stated, “The contribution of start-ups can helps us become resilient and can prove to be a smart move for many leading companies. About 60% of B2B tech start-ups were launched in 2020, they were adaptable & flexible in technical work approach, thereby enabling larger organizations to overcome many a roadblocks in the challenging times.” The real estate industry is changing with the rise of technologies that capitalize on the huge amounts of data generated in the world of real estate to make more informed decisions. According to Gaurav Burman, VP & Country President- India- 75F APAC, the developers and occupiers attention towards smart building will get stronger going forward. “Some of the tools for smart building operations to drive cost efficiencies are, Artificial Intelligence, Cloud and Machine Learning for asset management. The new trend is the digital twin, a computer program that uses real world data to create simulations that can predict how a product or process will perform. These programs can integrate the internet of things artificial intelligence and software analytics to enhance the output.”
Vijay Kumar Arisetty, Co-Founder & CEO – MyGate explained, “In India we look more at efficiency rather than automation. So we need to look at ground reality and the supporting environment for new technology. Operational efficiency is a very important aspect in India in terms of executing any new technology.”
PrudhviRam Kanakamedala, Managing Director, KMV Spaces LLP said, “Improvement, efficiency and integration was the key to drive technology. Right from the design phase and construction to marketing and facility management, it is important to understand how we can integrate these functionalities.”
FUTURE PROSPECTS FOR PROP-TECH
The Indian realty focus has now shifted towards online marketplaces, integration of digital technology, and innovative business models. In sync, the proptech market is also expanding as seen in the heightened investment activity in the sector.
As per Ninad Karpe, said, “Use of AI and block chain will make a big difference. Industry needs to encourage and adapt more smart ideas for rapid growth in a shorter time.”
With India’s real estate sector expected to balloon to a $1trn market by 2030, up from the $120bn in 2017, and expected to contribute 13% to India’s GDP by 2025, the future of proptech seems fairly promising.
Gaurav Burman feels, “A lot will depend on the amount of capital needed for a particular technology and its financial returns. However, the pandemic has fuelled the demand for online transactions and smart building operations.”
Sumeet Sharma said, “2021 will be the decade of larger collaboration for start-ups and deep tech. India has a huge market for property related technologies and government too is taking policy initiatives to boost technology.”
Government should also promote prop-tech companies by providing credit guaranteed loans and address the concerns of the prop tech start-ups.
PrudhviRam shared that real estate developers have understood the execution of technology and its benefits. In the next 3-5 years we will see the next phase of even more complex technologies across realty segments.”
Vijay Kumar Arisetty mentioned, “In prop-tech space your ability to scale or distribute a product becomes a very critical factor. While solving the problems we need to think more about how to deliver on time. In the real estate sector every region’s market is different from the Tech companies need to understand the end-users requirement, region, its ecosystem and development to play a significant role.”
Harshan concurred, “To raise funding, companies will have to build scalable business model. With prop-tech segment maturing, the years to come seem optimistic.”