Funding in proptech players dips 3% to $719 million in 2022: Report

livemint.com:

New Delhi: Despite global economic uncertainties and a funding winter seen in the startup sector at large, investments in proptech firms dipped by a mere 3% to $719 million in 2022, according to a report by Housing.com. The report highlights that the sector has witnessed a cumulative investment of nearly $4 billion between 2009 and 2022, boasting an impressive compounded annual growth rate (CAGR) of 49%. Funding in proptech firms marginally declined from $742 million in the previous year, but certain segments within the industry drew substantial investor interest.

Shared economy platforms, including co-living and co-working, secured the majority share, accounting for 64% of the total fund inflow. Investors have shown great confidence in these segments, considering their perceived growth potential. Additionally, PropTech players offering construction technology solutions received 15 per cent of the total funding in 2022.

This trend reflects the real estate developers‘ increasing emphasis on reducing construction times while maintaining high-quality standards. In countries like India, where extended construction cycles inflate project costs, PropTech solutions are increasingly being leveraged for effective project management. Dhruv Agarwala, Group CEO of Housing.com, PropTiger.com & Makaan.com, said, “Investments in the PropTech space remained stable throughout 2022, even amidst global turmoil.