HDFC, HDFC Life Insurance Acquires Stake in Xanadu Realty
HDFC Life Insurance Company and its subsidiary HDFC Development Finance Corporation recently acquired stakes in a real estate accelerator company, Xanadu Realty. The strategic investment for a significant minority ownership in the company is valued at roughly Rs 1,000 crore in pre-money terms. HDFC and HDFC Life Insurance Co.'s investment is expected to support Xanadu Realty's proposed strategic expansion plans as well as the development of unique technology platforms. Both HDFC and Xanadu confirmed the transaction, but declined to comment on the deal size and valuation. Xanadu, founded by industry experts R Karthik and Anurag Singhvi, has assisted real estate developers in completing a thorough turnaround of their portfolio. It has created and implemented end-to-end product, design, marketing, and sales strategies for developers. “I have great faith in the professionals running Xanadu. I have known the founders, Karthik and Anurag for over a decade, and they are building an outstanding tech-driven, real estate organization focused on delivery of unique solutions for the large Indian real estate ecosystem,” said Deepak Parekh, Chairman, HDFC HDFC Capital Advisors, a subsidiary of HDFC Bank, recently invested in Loyalie IT Solutions, a real estate digital amenities supplier, as part of its effort to invest in technology firms that benefit the real estate ecosystem. Xanadu Realty, which was founded in 2016, pioneered the notion of offering end-to-end product-to-market services using its patented full-stack marketing and sales platform, which allows it to take over the whole revenue generation portion of real estate developers' projects or portfolios. “This investment is a validation of our differentiated approach to transform the real estate space with cutting edge technology solutions. This strategic partnership will go a long way in unlocking exponential potential for Xanadu Realty and Indian real estate sector at large,” said R. Karthik, MD & co-founder, Xanadu Realty. Xanadu has worked with over 55 projects of 36 real estate developers including Hiranandani Group, Runwal Group, Tata Realty & Infrastructure, Ajmera Group, Raunak Group, Paranjape Schemes and Kumar Properties. The company’s client sales stood at over Rs 2,000 crore in 2021-22. “We have grown 10 times in sales delivery since our inception. With over 600 employees across Mumbai, Pune and Bangalore offices, we have achieved sales of over Rs 2,000 crore for our clients in FY22 and this number is expected to double in FY23,” said Anurag Singhvi, MD & co-founder, Xanadu Realty. The transaction between HDFC and Xanadu Realty was advised by Trustcap, a Mumbai-based real estate focused investment bank. On its X-Intel platform, a database management system built by Xanadu, the company manages a database of 65 lakh consumers in the Mumbai Metropolitan Region (MMR). By the end of this fiscal year, the platform will be active in Pune and Bangalore, with additional significant markets following suit. To fulfil the company's business ambitions in the fiscal year 2021-22, the company conducted over 80,000 face-to-face customer encounters and over 1 million interactions.
Tags : HDFC HDFC Life Insurance Acquires Stake Xanadu Realty R. Karthik MD & co-founder Xanadu Realty Deepak Parekh Chairman HDFC