Funding in PropTech firms dips slightly: Report

economictimes.indiatimes.com:

Funding in PropTech firms experienced a slight dip in 2022, reaching USD 719 million, according to a report by housing.com. However, the PropTech sector has demonstrated resilience, with a cumulative investment of nearly USD 4 billion between 2009 and 2022, boasting a remarkable compounded annual growth rate (CAGR) of 49 per cent. «Investments in the PropTech space remained stable throughout 2022, even amidst global turmoil.

Over the past decade, the real estate sector has made significant strides in adopting innovative technologies, particularly in the last three years. The COVID-19 pandemic and subsequent lockdowns served as catalysts, accelerating the adoption of technology across the industry,” said Dhruv Agarwala, Group CEO of Housing.com. While funding in PropTech firms marginally declined from USD 742 million in the previous year, certain segments within the industry drew substantial investor interest.

Between 2009 and mid-2023, Proptech investments in India witnessed the shared economy sector as the frontrunner, comprising 40 per cent of total investments, followed by sales & marketing with a 24 per cent share. In H1 2023, the Proptech investments in India surpassed the $4 billion mark (Since 2009), highlighting the sector's significant growth and transformative potential. Notably, shared economy platforms such as co-living and co-working secured the majority share, accounting for 64 per cent of the total fund inflow.

This surge of investor confidence can be attributed to the perceived growth potential in these segments. Additionally, PropTech players offering construction technology solutions received 15 per cent of the total funding in 2022. This trend reflects the real estate developers' growing emphasis on