Brigade Group Launches ₹300-Crore Earth Fund to Boost Prop-Tech and Sustainability in Indian Real Estate

Less than 1% of Indian real estate developers’ revenue is invested in technology, with India having only invested $5 billion in the global prop-tech industry, compared to $110 billion globally. This reliance on manual processes contrasts with global companies utilizing AI, automation, and smart infrastructure for greater efficiency. In response, Brigade Group and Gruhas have launched the ₹300-crore Earth Fund, focusing on early-stage startups in prop-tech, construction, and sustainability. The fund plans to invest $1-2 million per startup, aiming for 10-15 startups.

With 60% of the fund already raised, it will support innovations in areas like climate tech, clean tech, and smart mobility. The Earth Fund, backed by key industry figures, seeks to combine traditional real estate with cutting-edge technologies to foster more sustainable and efficient urban spaces, addressing the significant environmental impact of the construction sector.

Brigade Group Launches ₹300-Crore Earth Fund to Boost Prop-Tech and Sustainability in Indian Real Estate

Nirupa Shankar, Joint Managing Director of Brigade Enterprises, shared that Indian real estate developers spend less than 1% of their revenue on technology. This is a stark contrast to the global property technology (prop-tech) industry, which has attracted $110 billion in investments. In comparison, India has only invested $5 billion in this sector. While international companies are adopting advanced tools like artificial intelligence (AI), automation, and smart infrastructure to boost efficiency and transparency, Indian developers continue to rely heavily on manual processes.

To address this gap, Brigade Group has partnered with Gruhas, the investment firm founded by Nikhil Kamath and Abhijeet Pai, to launch the Earth Fund. This ₹300-crore Alternative Investment Fund (AIF) is designed to support startups working on prop-tech and sustainability. The fund will focus on early-stage companies in the real estate, construction, and sustainability sectors, with investments ranging from $1 to $2 million per startup. Over time, the Earth Fund plans to invest in 10-15 startups that have demonstrated a strong product-market fit.

Abhijeet Pai, co-founder of Gruhas, revealed that 60% of the fund has already been raised, and the remaining amount is expected to be secured within the next 6-9 months. The Earth Fund is supported by prominent industry figures, including Nirupa Shankar, Abhijeet Pai, Nikhil Kamath, and Mohan Parvatikar. Their goal is to drive innovation in the real estate and construction sectors by backing startups that focus on prop-tech, construction technology, and sustainable solutions like climate tech, clean tech, and smart mobility.

Shankar emphasized the urgent need for technological and green innovations in the real estate and construction industries. These sectors are major contributors to global water consumption and CO2 emissions, making sustainability a critical focus area. By investing in startups that develop cutting-edge technologies, the Earth Fund aims to reduce the environmental impact of these industries while improving efficiency and transparency.

The fund also recognizes the growing demand for sustainable buildings, particularly in commercial spaces. While luxury real estate often prioritizes high-end features, there is a noticeable shift toward eco-friendly and energy-efficient designs. The Earth Fund seeks to bridge the gap between traditional real estate practices and modern technologies, creating urban spaces that are both efficient and sustainable.

In summary, the Earth Fund represents a significant step toward modernizing India’s real estate and construction sectors. By supporting startups that focus on prop-tech and sustainability, the fund aims to bring innovative solutions to an industry that has been slow to adopt technology. With the backing of industry leaders and a clear focus on green innovations, the Earth Fund is poised to make a meaningful impact on the future of urban development in India.