Anil Ambani-led Reliance Group’s private equity firm has invested USD 12 million in real estate brokerage firm Square Yards, the realty firm said on Wednesday. The brokerage firm will use the proceeds to strengthen its distribution network. Square Yards, an online to offline (O2O) real estate transaction player, has “raised US$12 million investment from the Private Equity arm of Anil Ambani led Reliance Group.”
Square Yards has secured first institutional investment from Reliance Group after it had raised USD 11 million from a clutch of high net worth investors last year. With the fresh capital infusion, Square Yards aims to strengthen its distribution network across Indian and global markets, the company said in a statement.
The company is targeting a double digit market share in Indian real estate distribution, expanding to 25+ countries and becoming largest mortgage advisory and developer marketing firm in India. Founded in 2013, Square Yards is distributor for primary residential real estate in India, and focuses on the Non Resident Indian (NRI) markets.
“With this collaboration, the Company will be able to draw on Reliance’s extensive experience, particularly in scaling up the business to a higher growth trajectory and creating significant shareholder value in the process,” Kanika Gupta Shori, Founder & COO, Square Yards, said “Besides capital, we will also get access to best practices in running large consumer businesses at scale, with the participation of Reliance,” Shori added.
“Timing of this investment could not have been better for us, with Government’s blow on black money and RERA kicking in soon, Real Estate will get consolidated, organised and institutionalized,” Tanuj Shori, CEO and Founder said.
“Secondary market will be most impacted (prices will drop) but eventually volume surge will help us win even more market share. This is beginning of organised real estate in India,” the CEO added. The company said it has been able to generate exceptional growth in all key business metrics, and currently has net revenue run rate of $1.5Mn – $2Mn per month (annualized ~ $25Mn) and transaction run rate of 600-800 unit/month.
Square Yards is a technology-enabled transaction and aggregation platform for global real estate.