Even as many startup segments have seen ups and downs over the last few years, in terms of investor funding, mergers and acquisitions (M&A), and other growth milestones such as IPOs, the proptech segment has continued to show steady growth. According to Tracxn, proptech startups raised a total of $222.12 million, $242.60 million and $229.93 million in 2023, 2024 and 2025, respectively.
The sector has also seen increased IPO activity in the recent past. Startups in the co-working segment, a key segment within proptech, such as Smartworks, IndiQube, and DevX listed on Indian stock exchanges in 2025 and many startups, such as construction tech startup Infra. Market and rental startups Furlenco and Rentomojo are also expected to list soon.
From Co-Working IPOs to Scalable Digital Trust
The increased IPO activity has boosted institutional investor confidence in early-stage startups in the sector. This year, already two early-stage startups, including PropertyPistol Realty and Flent, have raised a total funding of $4.62 million.
“The Indian proptech scene has moved up the curve. It is now closing high-value deals. Investors are looking today at pivoting towards transaction-led models (not just classifieds) along with high-yield artificial intelligence (AI)-driven valuations,” Brijesh Damodaran, managing partner, Auxano Capital, told FE. He added that ESG-compliant green infrastructure is also in favour.
Experts say that proptech is also grabbing the attention of retail investors as it is riding on top of real estate in India, which is being structurally re-rated. Investors are paying attention because India’s digital rails plus better execution talent has made it possible to build scalable, high-trust workflows in a category where trust and outcomes matter.
“We are urbanising fast. People are earning more and earning earlier, so disposable income and aspiration are both rising,” Sanjay Mandava, founder and CEO, Landeed, a Y Combinator-backed proptech startup, said.
Mandava added that GCCs are a visible signal that India’s work output is moving up the value chain, and premium housing growth reflects that homes are no longer just “sleep and eat” spaces. “They are also places to host, to work, to signal identity. Offices have also evolved, from pure workplaces to hubs of community and culture,” he said.
Many proptech startups have also reported healthy growth in FY25. According to Entrackr, interior design firm Livspace reported the highest operating revenue in the segment of Rs 1,460 crore, followed by full-stack proptech platform Square Yards, which reported Rs 1,410 crore in operating revenue during the same period. Other proptech companies that showcased healthy financials in FY25 include Smartworks, Awfis, IndiQube, HomeLane, and Simpliwork.
Most of these firms are on an expansion spree. HomeLane is currently focusing on franchise-led expansion. “We currently have 67 live franchise studios and 26 more in the pipeline, and we plan to onboard an additional 100 franchise studios in 2026,”
Srikanth Iyer, CEO and co-founder, HomeLane, said. In FY25, the firm reported Rs 756 crore revenue from Rs 618 crore in FY24. HomeLane aims to be profitable in Q4 FY26 and expects full-year profitability and a revenue of Rs 1,100 crore in FY27.
Monetization
Experts point out that one of the key reasons proptech startups are achieving scale is the opportunity to monetise. Monetisation is no longer a struggle, they say.
“Customers are demonstrably paying for convenience, reliability, speed, and end-to-end execution,” Mandava said. Further, brand-building in real estate is becoming less dependent on physical presence. Earlier, trust often required heavy offline validation—names on buildings, local dominance, or expensive, always-on advertising.
Mandava added that now firms can build trust digitally through consistent delivery, transparent workflows, strong customer experience, and visible proof, without needing a large physical footprint.
Experts expect to see proptech firms deepen their presence in core markets in FY27, while also trying to prove their model works in different markets and at different ticket sizes. The segment is also expected to shift from experimental ‘pilot’ apps to enterprise-wide ecosystems. A major focus area for startups in the space this year is AI applications.
“We are doing it through our specialised AI/ML unit in our company called Landeed Labs. We are taking advantage of our in-house infrastructure from our GPUs to build our own models,” Mandava said while adding that the goal is to become a core digital infrastructure for title intelligence and execution.
AI/ML (machine learning) property analytics and smart home integration are becoming more rampant today. Additionally, AI is taking over a lot of the work on the consumer side, such as discovery, consultation, and similar functions. Another key trend that is playing out is proptech players working with brokers instead of trying to remove them.
“Most startups targeting secondary sales and trying to disrupt brokers aren’t interesting because brokers have more control over inventory, trying to buy exclusivity over inventory means spending money upfront, and they still make the same margins as a broker, essentially becoming a tech-enabled broker versus a mom-and-pop broker,” Arjun Malhotra, general partner, Good Capital, said.