Times Property | HDFC Capital To Invest In 15 Start-Ups To Drive Affordable Housing

Dec 27,2022

Everyone knows that establishing a startup is no easy task. One of the most difficult tasks while starting a business is finding the right partner to believe in your project to fund it adequately. Hustling to keep up with the ongoing trends while pitching your ideas to investors to build something you put your soul into is indeed a challenging venture. And the competition increases with the booming start-up industry in the country at the moment. And just in the right time HDFC Capital seems to have come to the rescue of many such entrepreneurs who are trying to make a mark for themselves in the housing sector.

Hdfc housing

HDFC Capital Advisor 
HDFC Capital Advisors, a division of the Housing Development Finance Corporation (HDFC), has completed a proptech platform HDFC Real Estate Tech Innovators 2022 in collaboration with Startup India. It was developed as part of HDFC Capital's HDFC Affordable Real Estate and Technology (H@ART) platform to uncover, recognise, and award breakthroughs in the domains of finance, the sales tech, construction tech, and sustainability tech.

The H@ART platform has committed to investing in more than 15 prop-tech start-ups, including at least three start-ups from the HDFC Tech Innovators competition, and has previously invested in companies such as Loyalie, HomeExchange, and Monsoon Credit. 

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HDFC Capital has collected over 500 crores from global investors as the first close of its property technology fund for investments in start-ups that promote innovation and efficiency within the affordable housing ecosystem.

The HDFC Real Estate Tech Innovators 2022 competition, which was run in collaboration with Startup India, garnered a massive response, with over 537 firms competing in categories such as project management and construction tech, sales and finance, and sustainability tech.

According to Mohamed AlQubaisi, Executive Director of Real Estate, ADIA, residential real estate is the next industry that ADIA anticipates Proptech impact. To cut expenses, boost efficiency, and increase sales, we must embrace Proptech. His expectation is that Proptech would help ADIA and HDFC achieve their goal of funding the construction of 1 million homes in India.

According to Union Minister Hardeep Singh Puri, the degree of absorption and acceptance of technology in the real estate sector has been slower than in other infrastructure categories thus far. He also expressed his gratitude to HDFC Capital for organising the HDFC Real Estate Tech Innovator's Challenge 2022 through its revolutionary Housing and Real Estate Technology Platform in collaboration with Invest Indian.

The Union Minister feels that such platforms are critical for the real estate business, which is India's second-largest employment. He claimed that he is certain that the attempts to increase the usage of technology in Indian real estate would drive more start-ups to be inventive and boost India's housing ecosystem.

What Is HDFC Capital Fund?
As their official site reads HDFC Capital Advisors Limited is a specialist Real Estate Private Equity Investment Manager that attempts to provide its clients with competitive returns, making them one of the world’s premier fund managers specialising in low- and middle-income housing.

Their aim is to fund the construction of one million affordable houses in India through a combination of flexible financing, strong partnerships, and technological advancements, resulting in long-term social and economic benefits, with their vision being A for-profit global impact platform that uses knowledge accumulation, creative finance, partnerships, and technology to meet the requirements of the affordable/social housing ecosystem for all stakeholders in a sustainable manner.

FAQs
1. Why investment in start-ups is a good option?

 The investors will have more clout in influencing the startup's system. By investing in a company, capitalists may reap several rewards. They receive ownership in the firm in exchange for their investment. The harvest will be excellent just by giving initial funding and management services.

2. What is the return on investments for startups?

A typical yearly return on investment in a startup is 15-20%. However, it is dependent on how sound or prudent your investment decision is. To make an informed decision, the first step is to thoroughly grasp the industry in which the startup operates.

3. How to choose a startup to invest in?

Choosing the correct startup to invest in is one of the most difficult challenges for a startup investor. If you chose well, you will succeed and earn a good return. If you make the wrong decision, you will waste money, time, and a lot of energy. In light of the fact that this is an innovative venture, how do you decide which firms are deserving of investment?