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HDFC Capital concludes 2nd H@ART summit; commits investments to 15 startups

Capital concluded the second H@ART (Housing and Affordable Real Estate and Technology) summit on November 14, 2022 in Mumbai.

Capital through its H@ART platform has committed to more than 15 investments in Indian prop-tech startups and has already invested in like Loyalie, HomeExchange and Monsoon Credit.

A subsidiary of Housing Development Finance Corporation Ltd, is the real estate private equity arm of HDFC Group.

Recently, the H@ART Platform raised over Rs 500 crore through global investors as the first close of its property technology fund.

Under H@ART, HDFC Capital has set up a ‘not-for-profit’ tech platform which serves as a melting pot for all stakeholders – global and domestic investors, developers, real estate funds, VC and general private equity funds, start-ups, academia and industry associations.

“H@ART Platform had launched HDFC Real Estate Tech Innovators 2022 challenge in partnership with Startup India, receiving an overwhelming response with over 537 startups categorised under Project Management & Construction Tech, Sales and FinTech and Sustainability Tech.” the company said in a press release.

This innovators challenge concluded on November 14, 2022 at the Trident, Nariman Point, in Mumbai.

The startups that applied for the challenge went through a jury process overseen by Ernst & Young with jury members from the Indian and global real estate and financial sectors, academic institutes, and other venture capital funds.

Out of the 10 finalist start-ups, four were focused on construction tech and three each in sustainability tech and sales & fintech.

Union Minister for Housing & Urban Affairs and Minister for Petroleum & Natural Gas, Hardeep Singh Puri, said, “We have observed that the degree of absorption and adoption of technology in the real estate sector has so far been slower than in other infrastructure segments.”

Praising HDFC Capital’s initiative to amp up Prop-tech in India, Puri said, “Such platforms are essential for the Real Estate industry which is the second largest employer in India and is expected to contribute 13 per cent of GDP in 2030. I am certain that these efforts to enhance adoption of technology in Indian real estate will encourage more start-ups to build more disruptive innovations targeting and further strengthening the India housing eco-system.”

Calling ‘H@ART’ a unique initiative for real time interaction between demand (industry), supply (start-ups) and financiers to accelerate adoption of technology in real estate world, the HDFC Ltd’s Chairman Deepak Parekh, in his inaugural address said, “We at HDFC, firmly believe that technology will play a significant role in the development of a sustainable, efficient real estate ecosystem and in meeting India’s ‘Housing for All’ goal.”

“H@ART provides a seamless platform for all stakeholders including global investors, developers, start-ups and vendors to access latest technology and financing innovations to develop sustainable and smart affordable homes in India,” said Vipul Roongta, MD & CEO, HDFC Capital Advisors.

HDFC Capital is the investment manager to HDFC Capital Affordable Real Estate Fund 1 (H-CARE 1), HDFC Capital Affordable Real Estate Fund 2 (H-CARE 2) and HDFC Capital Affordable Real Estate Fund 3 (H-CARE 3), which are registered with SEBI as a category II alternative investment funds.

These funds combine to create a $ 3 billion platform targeting the development of affordable and mid-income housing in India.

Prop-tech includes construction tech, sales tech, fintech and sustainability tech. Prop-tech is an established asset class globally with $110 bn being invested in prop-tech in the last 6 years giving rise to over 42 unicorns.

While proptech in India is still in its nascent stage, it is expected to experience exponential growth over the next few years in line with the growth in the country’s real estate sector which is expected to contribute 13 per cent to GDP by 2030.

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