Real estate platform Square Yards has raised ₹900 crore, pushing its valuation past the $1 billion mark to join the unicorn club. The company plans to use this capital for expansion as it gears up for a proposed ₹2,000 crore initial public offering.
What Happened
Square Yards, an Indian real estate and mortgage platform, has reached unicorn status with a new funding round of ₹900 crore. The round was led by EAAA Alternatives, with participation from global credit manager Muzinich & Co. This influx of capital brings the company’s valuation above the $1 billion threshold, a key milestone for private companies. This funding arrives as the company prepares for an initial public offering (IPO) where it reportedly aims to raise ₹2,000 crore.
Financial Growth and Performance
In the fiscal year 2026, Square Yards reported strong growth, with annual revenues reaching ₹2,086 crore, a 48% increase compared to the previous year. The company’s operational profitability also improved, with EBITDA (earnings before interest, taxes, depreciation, and amortization) rising significantly to ₹176 crore, representing a 3.7 times increase. These numbers reflect the company's shift from being a pure brokerage firm to a full-stack real estate and financial services provider.
Business Model and Diversification
Unlike traditional brokerage firms, Square Yards operates across the property value chain. Its subsidiary, Urban Money, is a large player in the mortgage and lending space, facilitating ₹87,831 crore in loan disbursals during FY26. Other business segments include Azuro, which manages rental properties, and Interior Company, which focuses on home renovation. The company also utilizes B2B technology tools like virtual reality property viewings and data intelligence for valuations. By offering services beyond just buying and selling homes, the company aims to increase its revenue touchpoints with a single customer.
The Road to IPO
With this capital infusion, the company is looking to scale its technology infrastructure and market reach. The upcoming ₹2,000 crore IPO is expected to be a major liquidity event for early investors. As the company prepares for public markets, investors will likely focus on how it balances this rapid growth with sustained profitability. Public market investors typically scrutinize the sustainability of growth in technology-driven businesses, especially when they operate in the highly fragmented Indian real estate sector.
Risks and Market Context
Operating in the prop-tech sector comes with inherent risks. The Indian real estate market is highly unorganized, which creates challenges in customer acquisition and regulatory compliance. Square Yards faces competition from established players like Info Edge’s 99acres and MagicBricks, as well as several smaller startups. Success for the company will depend on its ability to maintain its market share while managing the costs associated with scaling its diverse business lines. The firm's ability to execute its expansion plans without putting unnecessary pressure on its profit margins will be a key area for potential public market investors.
What To Watch Next
Investors and market observers will likely watch for the formal IPO filing with the regulator. Additionally, reports suggest the company may seek another $50-60 million in the coming quarters, which would be another indicator of its valuation trajectory before the public listing. Tracking the management's commentary on capital allocation and their ability to keep customer acquisition costs in check will be important as the company moves toward becoming a publicly traded entity.