In a bold move that underscores the growing intersection of sustainability and innovation in the built environment, Brigade Group has joined forces with Gruhas, the investment arm founded by Nikhil Kamath and Abhijeet Pai, to launch the Rs 300 crore Earth Fund. This strategic initiative is poised to catalyze transformative change in the real estate and construction sectors by backing high-growth start-ups that are tackling critical challenges through cutting-edge technology and sustainable practices.
The Earth Fund, comprising a Rs 200 crore SEBI-registered Category II Alternative Investment Fund and an additional Rs 100 crore green-shoe option, is set to invest in Pre-Series A and Series A tech start-ups. These start-ups are at the forefront of pioneering advancements in real estate, construction, and sustainability. Each selected company will receive an investment ranging from Rs 8 to Rs 12 crore, with the fund aiming to support 15 companies that have demonstrated product-market fit and are ready to scale their innovative solutions.
Nirupa Shankar, Joint Managing Director of Brigade Enterprises, announced the fund’s launch, emphasizing the growing momentum in the proptech sector. “While there are currently seven unicorns in this space, funding remains relatively low compared to other countries,” Shankar noted. “We anticipate more unicorns emerging in the future.” This forward-looking perspective aligns with the fund’s focus on UrbanTech, which includes proptech, construction technology, real estate solutions, and asset utilization, as well as sustainability initiatives related to climate, clean technology, smart mobility, and energy solutions.
Abhijeet Pai, co-founder of Gruhas, highlighted the fund’s alignment with a broader vision of leveraging technology to foster sustainable growth in real estate and construction. “The modernization of our built environment is increasingly urgent,” Pai stated. “This fund is not merely about capital; it serves as a catalyst for transformative change.”
Shankar echoed this sentiment, emphasizing the critical role of technology in reshaping real estate. “Our objective is to identify and support start-ups that will redefine urban development,” she said. This focus on innovation is backed by data from Grand View Research, which projects that the Indian proptech market will surge from USD 918.1 million in 2022 to USD 3,797.6 million by 2030.
The Earth Fund is not just about financial investment; it is about fostering a ecosystem of innovation and sustainability. Through Brigade REAP, Brigade Group has already mentored and invested in over 80 companies over the past eight years across the urban tech and sustainability sectors. The Earth Fund aims to continue this trend by backing start-ups focused on real estate, construction, and climate-centric technology.
The fund will attract investments from family offices and high-net-worth individuals (HNIs), in addition to the backing from Kamath and Pai. This diverse investment base underscores the growing recognition of the potential in the proptech and sustainability sectors. As the construction industry grapples with the dual challenges of rapid urbanization and environmental sustainability, initiatives like the Earth Fund are not just timely but essential.
This strategic partnership between Brigade Group and Gruhas is set to reshape the landscape of real estate and construction in India. By focusing on start-ups that are at the intersection of technology and sustainability, the Earth Fund is poised to drive innovation, create jobs, and foster a more sustainable built environment. As the sector evolves, such initiatives will be crucial in addressing the urgent need for sustainable urban development, ensuring that our cities are not just smart but also green and resilient.
