In a strategic move to support high-growth start-ups addressing challenges in the built environment through sustainability and innovation, Brigade Group has teamed up with Gruhas, the investment arm founded by Nikhil Kamath and Abhijeet Pai, to introduce the Rs 300 crore Earth Fund. This fund comprises a Rs 200 crore SEBI-registered Category II Alternative Investment Fund, along with an additional Rs 100 crore green-shoe option.

Nirupa Shankar, Joint Managing Director of Brigade Enterprises, announced on Tuesday that the Earth Fund will focus on investing in Pre-Series A and Series A tech start-ups that are pioneering advancements in real estate, construction, and sustainability. Each start-up will receive an investment ranging from Rs 8 to Rs 12 crore, with the goal of supporting 15 companies that have demonstrated product-market fit and are seeking capital to scale their innovative solutions.

Shankar highlighted the growing momentum in the proptech sector, noting that while there are currently seven unicorns in this space, funding remains relatively low compared to other countries. "We anticipate more unicorns emerging in the future," she stated.

The Earth Fund will concentrate on several key areas, including UrbanTech—which encompasses 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, mentioned that numerous start-ups are under consideration for the Earth Fund. "The Earth Fund aligns with our vision of leveraging technology to foster sustainable growth in real estate and construction. The modernization of our built environment is increasingly urgent. This fund is not merely about capital; it serves as a catalyst for transformative change," he remarked.

Shankar emphasized the critical role of technology in reshaping real estate, stating, "Our objective is to identify and support start-ups that will redefine urban development."

According to Grand View Research, the Indian proptech market generated USD 918.1 million in revenue in 2022 and is projected to reach USD 3,797.6 million by 2030. In addition to Nikhil Kamath and Abhijeet Pai, the fund will attract investments from family offices and high-net-worth individuals (HNIs).

Nirupa Shankar also noted that through Brigade REAP, they have mentored and invested in over 80 companies over the past eight years across the urban tech and sustainability sectors, and the Earth Fund aims to continue this trend by backing Pre-Series A and Series A start-ups focused on real estate, construction, and climate-centric technology.