Realtors' body Naredco's Maharashtra chapter will set up a proptech fund with an initial corpus of Rs 50 crore to support technology startups in the real estate sector.
Naredco-Maharashtra will launch this 'RealTech Fund (RTF)' on September 15 during its annual event The Real Estate Forum 2023.
"The developers have initially committed a corpus of Rs 50 crore, which will be further scaled as per the response to the fund," Naredco said in a statement.
This fund promises to propel and accelerate the growth of the real estate industry in India through innovation and technology, it added.
Sandeep Runwal, President of NAREDCO-Maharashtra and Managing Director of Runwal Group, said, "We believe that technology is going to play a major role in the healthy growth of the real estate sector going forward".
This RealTech Fund is being set up to support startups in the real estate ecosystem in order to meet current and future challenges head-on, Runwal added.
Commenting on the new fund, Akhil Saraf, founder of HDFC Capital-backed startup Reloy, said, "Real estate requires unique technology to cater to the needs of the housing industry".
"This will help the entire lifecycle from customer experiences to construction quality and redefine this asset class, which holds 77 per cent of India's household wealth," Saraf said.
According to Housing.com data, proptech companies have received USD 4 billion in funding since 2009, helped by the rapid growth in the use of technologies in the real estate sector, especially since the outbreak of the COVID-19 pandemic.