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Thursday, October 5, 2023

Homexchange secures $4M from HDFC, others to expand its business

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Proptech startup Homexchange has secured funding of  $4M. HDFC invested via its HDFC Affordable Real Estate and Technology Program (H@ART).

Homexchange, a proptech firm, has secured $4 million in a round of investment led by HDFC Capital, Oberoi Realty, and Anarock. The cash will be used by the Mumbai-based business to expand its reach and strengthen its technological platform. The business will also spend in building alliances and expanding its recruiting across several industries.

“We are a consumer-focused brand that brings together customers, developers, channel partners, and lenders in a transactional environment based on assurance. That is the enormous opportunity in an industry with $100 billion in transactions annually and expanding,” said Shirish Godbole, chairman and cofounder of Homexchange.

Shirish Godbole and Jesal Sanghvi created Homexchange in 2020 to allow customers to exchange their old property for a modern one.

The company is now active in Mumbai, Thane, and Bengaluru. The investment was made by HDFC Capital under the HDFC Affordable Real Estate and Technology Program (H@ART).

The H@ART project, according to the firm, strives to mentor, collaborate with, and invest in proptech startups in order to improve the efficiency, transparency, and trust in the real estate ecosystem.

Homexchange promises to use proprietary algorithms and models to determine the value of a property before making a counter-offer to consumers. This offer may thereafter be redeemed exclusively against properties listed on the Homexchange platform. On all transactions completed through its platform, the firm levies a 2% service fee on the offer price.

The proptech player claims to have completed deals worth INR 120 Cr so far and has collaborated with prominent names like L&T Realty, Rustomjee, Oberoi Realty, Puravankara, and Assetz, among others.

Investment in the proptech industry is predicted to reach $1 billion by 2025, according to a research by the Confederation of Indian Industry (CII) and Colliers. This is part of a bigger trend in the Indian real estate sector, which is predicted to reach $1 trillion in market size by 2030, up from $200 billion in 2021.

While Homexchange does not have a direct rival, it does compete in the digital real-estate selling industry with businesses such as Ivy Homes, Makaan, Magicbricks, and others.

Proptech firm PropReturns acquired an unknown amount of funding earlier today from a group of investors that included CRED’s Kunal Shah. BuildNext secured $3.5 million in equity funding earlier this month as part of a pre-Series A round led by Madhumala Ventures.

PropShare, located in Bengaluru, secured $47 million last month from WestBridge Capital and Pravega Ventures. Prior to that, another such firm, Ivy Homes, raised $7.05 million in a venture round through stock and loans.

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