BENGALURU: With an idea to back high-growth start-ups that solve challenges in the built world through sustainability and innovation, Brigade Group has partnered with Gruhas, the investment arm of Nikhil Kamath and Abhijeet Pai to launch Rs 300 crore Earth Fund (Rs 200 cr SEBI-registered Category II Alternative Investment Fund with an additional Rs 100 crore green-shoe option).
Nirupa Shankar, Joint MD, Brigade Enterprises told media on Tuesday that this Earth Fund will invest in Pre-Series A and Series-A tech start-ups that are innovating in real estate, construction and sustainability. The fund will invest Rs 8-12 crore in each start-ups and are targeting 15 start-ups that have a demonstrated product market fit and are looking for capital to scale their solutions.
Nirupa Shankar pointed out that proptech is gaining momentum now but funding in this space is still low compared to other countries. "There are seven unicorns from the proptech space and we expect more in the future," she said.
The Earth Fund's focus areas include UrbanTech-covering proptech, construction tech, real estate solutions and asset utilisation, sustainability, including climate, clean tech, smart mobility and energy solutions.
Abhijeet Pai, co-founder of Gruhas said many start-ups are being considered for the Earth Fund. "Earth Fund aligns with our vision of using technology to drive sustainable growth in real estate and construction. Modernising our built environment is more urgent than ever. Earth Fund is not just capital, it is a catalyst for change," he said.
Shankar stressed on the importance of tech in real estate and said, "Our aim is to identify and support start-ups that will redefine urban development."
According to Grand View Research, the India proptech market generated USD 918.1 million in revenue in 2022, and is expected to reach USD 3,797.6 million by 2030. Apart from Nikhil Kamath, Abhijeet Pai, Nirupa Shankar, the fund will also see investments from family offices and HNIs.
Nirupa Shankar also said through Brigade REAP they have mentored and invested in over 80 companies over the last eight years across the urbantech and sustainability value chain and this Earth Fund looks for backing Pre-Series A and Series A start-ups in real estate, construction and climate-focused technology.