HDFC Capital Advisors a subsidiary of private mortgage lender HDFC has raised over Rs 500 crore as the first close of its property technology fund through global investors, for investments into start-ups that drive innovations and efficiencies within the affordable housing eco systems said the persons with direct knowledge of the development.
Through its initiative HDFC Affordable Real Estate and Technology Program (HeART) it is looking to provide a platform to real-estate technology companies with innovative products that would create competencies and lower costs in each phase of the development cycle of a real estate project.
The HDFC Group entity has already made a few investments including HomeExchange, and Loyalie, and has already committed to more than 15 investments in Proptech Companies Operating in India.
As part of this initiative, HDFC Capital is soon launching the HDFC Tech Innovators Programme in partnership with the government of India, other global and Indian funds, academia, and industry associations to identify the most innovative Proptech companies. This will be an ongoing initiative in the quest to identify and partner with innovative technology companies in the affordable housing segment.
“HDFC Capital seeks to address the demand-supply gap in affordable housing in India through a combination of financing, partnership, and technology. We look forward to bringing together multiple stakeholders, including developers, consultants, construction companies, global companies, global institutions, venture funds, incubators, and accelerators,” Vipul Roongta, MD & CEO, HDFC Capital Advisors.
A key challenge faced by the technology companies operating in the real estate sector is the lack of scale and access to the right partner developers. In addition to financing, HDFC is also looking to create industry-wide ecosystems including stakeholders from the government, academia, developers, private equity, and venture capital funds to prompt policy initiatives.
It will also partner with accelerators and tie up with academic institutions to further the ideas related to enhancing housing development. The HDFC subsidiary is also likely to tie up with international funds to explore synergies and provide global context to Indian real estate innovations. HDFC will also tie up with established companies to create solutions for real estate and help them access the market through its real-estate investee companies.
