[Funding alert] Square Yards raises $25M from Hong Kong-based ADM Capital

Gurugram-based integrated real estate startup Square Yards has raised $25 million (Rs 185 crore) in growth financing from ADM Capital, a global investment manager with $2.4 billion assets under management across Asia Pacific and Europe. 

This capital infusion serves as the first tranche of the company's ongoing plan of larger growth capital raise of over $100 million in the near term. Square Yards said it will use the capital to continue to expand and invest in various verticals across the value chain. 

Tanuj Shori, Founder and CEO, Square Yards, said, 

“We have been fairly capital efficient since inception with a clear focus on delivering high ROI. With significant operational benchmarks met over the last 12 months, like profitability and pilot success of new initiatives like rental and property management, home interiors, etc.; we believe we are now at the cusp of an accelerated growth curve."

"With a strong institutional partner like ADM Capital, we believe we can now aggressively push towards brand and personnel investments to achieve a much faster trajectory.”

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Square Yards claims to have been building an integrated ecosystem of services organically as well as inorganically. It recently acquired platform capabilities in rentals/property management, data intelligence and VR space and has also launched its full-service platform offering home furnishing and home interior services.

Christopher Botsford, Co-founding Partner and Joint Chief Investment Officer, ADM Capital, added, 

“We are pleased to support Square Yards in its pursuit of scale and will continue to seek opportunities to support Indian corporates attempting to digitally disrupt traditional industries. We are also pleased with the company’s willingness to enhance its environmental and social policies and given ADM Capital’s proven ability to mitigate ESG risks and improve borrower governance, are available to share our expertise.”

Established in 1998, ADM Capital is providing flexible credit solutions to Asia Pacific’s leading mid-sized corporates. ADM Capital first entered the Indian market in 2004 and has since disbursed in excess of $670 million across 18 private financings. In conducting all its investment activities, ADM Capital focuses on the promotion of strong corporate governance and environmental and social compliance.

Globally, the proptech industry has been moving to integrated plays. According to the real estate startup, leading players like Zillow, Beike, and Compass are creating an integrated digital consumer experience in all parts of the transaction, on both the buy-and-sell side, which enable them to capture more of the transaction. Square Yards said it has been pioneering this integrated ecosystem model and is one of the few real estate platforms globally that offers the full stack digital real-estate journey from search and discovery, transactions, mortgages, home interiors, rentals, property management and post-sales services.

It also offers B2B SaaS services to real estate agents, property developers, banks and other financial institutions.