Indian developers allocate less than 1% of their revenue to technology, according to Nirupa Shankar, Joint Managing Director of Brigade Enterprises. While the global prop-tech industry has attracted a staggering $110 billion in investments, India has contributed only $5 billion. Shankar highlighted the reliance on manual processes in the Indian real estate sector, contrasting it with global developers who leverage AI, automation, and smart infrastructure.
Brigade Group, in collaboration with Gruhas, the investment arm of Nikhil Kamath and Abhijeet Pai, has launched the Earth Fund — a ₹300 crore Alternative Investment Fund (AIF) aimed at supporting prop-tech and sustainability-driven startups through Zoiros Projects Pvt Ltd. The fund, registered under SEBI’s Category II AIF, includes a ₹200 crore base corpus with an additional ₹100 crore green-shoe option. It will invest $1-2 million in Pre-Series A and Series A startups that demonstrate strong product-market fit and require capital for scaling. Over time, the fund plans to build a portfolio of 10-15 startups, supporting them with both initial investments and follow-on funding.
“We have already shortlisted around 15 startups and intend to deploy 50% of the fund within the first year, with the rest invested over the next two to three years. So far, 60% of the fund has been raised, with the remaining amount expected to be secured in the next 6-9 months,” said Abhijeet Pai, co-founder of Gruhas.
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A Call for Greater Investment in Prop-Technology and Sustainability
Shankar emphasized the urgent need for innovation in the Indian real estate sector, particularly in sustainable development. The construction and real estate industries account for nearly 20% of global water consumption and 39% of CO2 emissions, yet Indian developers have been slow to adopt green technologies. She pointed out that while luxury office spaces are increasingly designed with sustainability in mind, residential buyers often prioritize luxury over eco-friendly features.
“Luxury and sustainability can coexist. Many commercial clients demand luxurious, sustainable spaces, but residential buyers are yet to catch up,” Shankar noted.
Pioneering Smart and Sustainable Urban Development
The Earth Fund aims to bridge the gap between traditional real estate practices and cutting-edge innovations. It will focus on UrbanTech sectors, including prop-tech, construction technology, real estate solutions, and asset utilization. Additionally, it will back startups in sustainability-driven fields like climate tech, clean tech, smart mobility, and energy solutions.
“With the Earth Fund, we’re committed to accelerating ventures that reshape urban living through smart infrastructure, green buildings, and AI-powered urban planning,” said Pai. Backed by prominent industry leaders like Nirupa Shankar, Abhijeet Pai, Nikhil Kamath, and Mohan Parvatikar, the fund aims to set new benchmarks in real estate technology and sustainability.
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