Square Yards recently received US$12 million funding from the private equity arm of Anil Ambani-led Reliance Group

Square Yards, an online to offline (O2O) real estate transaction player based out of Delhi, has raised US$10 million in fresh investment in the form of convertible notes from multiple individual investors primarily based outside of India.

The notes were issued for a fixed term at a pre-determined coupon rate and with an option to convert into equity (at a discount) on reaching the next funding milestone.

Also Read: It took US$60M to build Housing when I was there, and US$80M to shut down after I left — Rahul Yadav

Combined with the recently announced US$12 million equity funding from the private equity arm of Anil Ambani led Reliance Group, the new investment takes the total amount of funds raised by the company to approximately US$33 million since its inception in 2013.

Tanuj Shori, Founder and CEO, Square Yards, said, “We wanted to maintain a healthy mix in our balance sheet without diluting too much of equity at this stage of our growth. The new financing would help us accelerate our expansion into newer international geographies and at the same time strengthen our existing distribution network in 10+ countries.”

The Indian real-estate tech sector is witnessing significant consolidation activity with some big ticket mergers and acquisitions announced recently. They include Quikr’s merger with CommonFloor in 2015, and Housing’s merger with PropTiger early this week.

Added Kanika Gupta Shori, Founder and COO, Square Yards: “For this latest investment round, we reached out to our own set of real-estate clients in international locations through our NRI sales teams.”

Square Yards claims to be twice the size of its nearest competitor that got merged with a classified and listing player. It currently boasts of net revenue run rate of US$1.5 million to US$2 million per month (annualised ~ US$25 million) and transaction run rate of ~600-800/month.

Infographic: India’s hottest tech sectors by VC activity in 2016

The company sources mandates from top Indian and international developers and employs multimodal distribution strategy through its network of direct sales in India and NRI markets, channel partners and e-commerce. The company recently crossed US$1 billion in Gross Transactional Value (GTV) in terms of total value of properties sold on its platform.

Square Yards also provides specialised real estate allied service expertise through its group companies. Its financial arm, Square Capital, brings home loan assistance and mortgage fulfilment capabilities. The marketing arm, Bling Marketing, offers 360-degree marketing solutions to real estate developers. It also plans to venture into comprehensive property management and home furnishing segment in the near future.

The startup has more than 1,100 employees in 22 cities and 10 countries.

The post Realty startup Square Yards raises US$10M to fight the mighty Housing-PropTiger combo appeared first on e27.