Square Yards Convertibles – An Innovative Fund Raising Strategy

Square Yards’ Convertibles Offers Investment Liberty Against All Odds

Square Yards, India’s largest real estate platform, gains market share during Lockdown

In a global lockdown economy, organizations across spectrum have been transforming value chains and processes through technology products and global distribution networks to shield the business models and even scale in the downturn. India’s largest real estate platform, Square Yards has been trying to disrupt a challenging and traditional sector, positioning itself across the ecosystem and diversifying across locations, target segments and products to help leverage the synergies.

In a lockdown battered economy, Backed by technology and a large global distribution footprint, the proptech start-up has not only been able to continue its strong sales momentum through the current crisis but also achieved its highest monthly transaction numbers in the lockdown. Square Yards has sold over ~3100+ units online, worth INR ~1600+ crore, in the lockdown period. Its market share of various top developers’ distribution portfolios has moved from 5-20% to 60-70% over the last 3 months; and overall market share has moved up from ~3% to ~15-18%.

Square Yards so far has raised $75million through a combination of equity and convertible notes since its inception in 2014. A convertible note is a hybrid instrument, part debt and part equity. Square Yards Convertible notes typically functions as debt, until some point in the future, when it may convert to equity at some predefined terms. Convertible debt financing enables founders to avoid heavy equity dilution early on.

Square Yards offers a detailed and a well-integrated portfolio of India & international properties after carefully analyzing the opportunities across multiple investment parameters. Its platform covers the full real-estate journey starting from discovery to transactions, mortgages and post-sales service – fully integrating buyers to an extensive network of top-partners in addition to creating the tech and physical infrastructure in ancillary segments such as rentals, property management and Enterprise SaaS.

Square Yards launched a digital platform that automates the complete value chain of a real estate transaction starting from presales with online virtual tours and 3D walkthrough capabilities. A real-time inventory-blocking engine is integrated with multiple payment gateways and post sales module for submission of online applications with digital signatures. The property buyers can take a virtual tour of the properties and book it online with the help of Real Estate experts, without having to step out of the safety of their homes to make an on-site visit.

Square Yards today ranks as a top 20 consumer tech start-ups in India in terms of GTV (~USD1bn+), top 50 in terms of revenue (~USD45mn) and is amongst the handful of consumer tech start-ups in India which are profitable. It is one of few Indian start-ups which has successfully expanded globally in 9 countries. The start-up was recently featured in the Financial Times ranking of 500 High Growth companies in APAC and among the top 50 Fastest Growing Companies in India by Econ ..