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HDFC Capital Advisors is set to boost its ownership in proptech firm Loyalie IT Solutions (formerly known as Reloy) to 9.6% from the current 7.2% after a spike in the adoption of technologies in the Indian real estate market. HDFC Capital Advisors will purchase 1.67 lakh compulsory convertible preference shares (CCPS) which after allocation would equal an extra 1.8 to 2.4 percent stake in Reloy, according to a regulatory filing. HDFC Capital purchased a 7.2% ownership holding in Reloy for Rs 1.1 crore in March last year.
Reloy, a company founded in 2018 by Akhil Sharaf has been collaborating closely with leading real estate developers to design the ideal home ownership experience through their customer loyalty programmes. Housing Development Finance Corporation (HDFC) stated in the regulatory filing that its subsidiary HDFC Capital Advisors Ltd (HCAL) engaged in another share subscription agreement for the acquisition of Loyalie's CCPS on April 18 this year which after allotment would entitle HCAL to about 1.8% to 2.4% of Loyalie on a fully diluted basis.
HCAL has suggested investing in Loyalie as part of its H@ART initiative programme which invests in innovative firms in order to enhance the real estate industry. Reloy works in real estate brokerage. Its business is to provide marketing plans as well as loyalty/reward bonuses suggested by its clients. Loyalie's revenue increased from Rs 4.33 crore in the previous fiscal year to Rs 11.45 crore in the fiscal year 2022-23. Reloy raised Rs 5 crore from investors in a pre-Series-A round in January last year.
The startup is present in all major cities and is working with companies like Shapoorji Pallonji Real Estate, Mahindra Lifespace Developers and Godrej Properties. Housing.com data show that proptech companies in India got a total of USD 3.42 billion in private equity funding between 2009 and June 2022. Throughout the real estate life cycle, the use of new technologies like artificial intelligence, internet of things, and virtual reality has rapidly increased over the past few years, opening up several avenues for business and start-ups.
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