Square Yards, a major player in the real estate property business, has recently raised a sum of 10 million USD from investors via convertible notes.
The company is well known in the field of online advisory real estate business and has been a fantastic successful startup story in the recent years. The current capital raise is to ensure that the company continues on the same path of success for the forthcoming future, according to CEO and founder Tanuj Shori. “A part of the investment will go into strengthening all the three verticals — NRI market, global real estate, and mortgage broking. The funding will go into it to grow the market share. Another part of the investment will be utilized to launch some new initiatives such as broker aggregation and property management. The new financing will help us accelerate our expansion into newer international geographies and at the same time strengthen our existing distribution network in over 10 countries,” explained the CEO.
The statement makes clear the intent of square Yards in the years to come, ensuring that the company maintains a healthy bottom line while allowing enough capital influx to ensure the growth continues at the same rate. The raised capital will go a long way in helping Square Yards' expand its operations into the newer segment while polishing up on the current infrastructure and maintaining adequate customer service. Convertible notes are the best suited for companies at fast-growing stage, as it allows the company to take in capital for the growth without having to give up much equity immediately. The notes are based in a fixed equity rate based on current valuation. They have a term of maturation, after which it can be either converted to equity are cashed in at the predetermined rate.
This set of capital raise wasn't the company's first capital raise drive in recent years, as it had garnered nearly 12 million USD just 3 months earlier, as a part of the capital raise from the Private group of Reliance group. The company had also taken in a significant 11 million USD investment last year from a group of high profile Asian businesses from Hong Kong and Singapore, a movement well lauded. The company has now taken in a total investment of nearly 33 million USD since it was formed back in 2013. The investments seems to be well justified, as the company reports a net revenue of about 1.5 million USD per year, and boasting a staggering 1billion USD in net property value sold through the Square Yards interface. The astronomical growth of the company has seen them take up a leading spot in the transactional property market online.
The general scenario in the Indian property market is changing. The story of Square Yards' success in recent years marks a rising trend in the property market displaying a shift to the online marketplace for property hunting. The real estate market in India is set to touch an approximated 180 billion USD by the year of 2020. Even more significant is the fact that the housing industry in India contributes to 5-6 of the national GDP. This trend has given traction to multiple startups in this sectors, many of which have shown significant growth. Square Yards with its timely capital raise and well functional operational set up, has led the way, and looks to continue doing so in the near future.
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Square Yards is a technology-enabled, global real estate aggregator and India’s largest player for primary residential real estate. It’s subsidiary Square Capital is one of the largest marketplace for secured mortgages in India. Square Yards platform offers an integrated consumer experience & covers the full real-estate journey from search, discovery to research, transactions, home loans and post-sales service – fully integrating buyers to an extensive network of 500+ partner real estate developers, and 90+ banks & NBFCs. Square Yards is led by accomplished professionals, ex-bankers, and Ivy school alumni and is backed by the competence of more than 2500 employees in 30 cities and ten countries.