Property brokerage firm Square Yards has raised USD 25 million (about Rs 185 crore) as debt from Hong Kong-based ADM Capital to expand its business.
With this debt funding, Square Yards has so far raised USD 50 million in equity and USD 50 million in debt financing since its inception in 2014.
Anil Ambani-led Reliance group’s private equity arm had invested USD 12 million in Square Yards in November 2016. In September 2019, Square Yards raised USD 20 million equity capital from a clutch of investors including Times Group, Genkai Capital, Founders of PropertyGuru — Steve Melhuish and Jani Rautiainen; Koh Boon Hwee ex-Chairman Singtel and DBS.
In a statement, Square Yards said it has ”received USD 25 million (around Rs 185 crore) in growth financing from ADM Capital.” The Delhi-NCR based firm will use the capital to expand and invest in various verticals across the value chain. A senior company official said that the USD 25 million fund has been raised from the ADM Capital in form of ”venture debt”.
There is no change in equity shareholding structure of Square Yards. ADM Capital is a global investment manager with USD 2.4 billion assets under management across Asia Pacific and Europe. ”This capital infusion serves as the first tranche of company’s ongoing plan of larger growth capital raise of over USD 100 million in the near term. To expand its services, Square Yards has recently acquired platform capabilities in rentals/property management, data intelligence and VR space. It has launched its full-service platform offering home furnishing and home interior services.
Tanuj Shori, Founder and CEO – Square Yards, said the company has 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 cusp of an accelerated growth curve.”
Square Yards offers 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. Square Yards posted a 17 per cent increase in revenue at Rs 348.8 crore last fiscal from India and overseas business.