Brigade Group and Gruhas Launch Rs 300 Cr Earth Fund to Transform Urban Tech and Sustainability

The world of urban technology and sustainable innovation is about to witness a revolutionary transformation as Brigade Group and Gruhas, led by Nikhil Kamath and Abhijeet Pai, join forces to establish the Rs 300 crore Earth Fund. This initiative is designed to propel proptech and sustainability-focused startups, nurturing groundbreaking ideas that reshape real estate and urban development.

The Power of Strategic Investment

The Earth Fund, operating under Brigade Group’s Zoiros Projects Private Limited, is structured with an initial Rs 200 crore corpus and an additional Rs 100 crore in green-shoe option. The objective? To strategically invest in 10 to 15 cutting-edge startups, with each investment ranging between $1-$2 million. Beyond initial funding, the initiative sets aside 30% of its capital for follow-on rounds, ensuring long-term support for five to six high-potential companies.

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Key Focus Areas: Revolutionizing Urban Tech

The fund’s scope extends across multiple domains in urban technology, including:

• Construction Tech – Enhancing efficiency and innovation in building processes.
• Real Estate Solutions – Transforming how properties are designed, built, and managed.
• Asset Utilization – Optimizing urban infrastructure for greater sustainability.
• Climate Tech – Addressing environmental challenges with next-gen solutions.
• Clean Tech & Energy Solutions – Pioneering sustainable energy alternatives.

The Backbone of the Fund

Both Brigade Group and Gruhas are committing Rs 50 crore each, contributing to 30% of the total fund. The remaining capital will be sourced from builders, high-net-worth individuals (HNIs), and family offices, forming a diverse pool of strategic investors.

Deployment Strategy: A Three-Year Plan

With meticulous planning, the fund will be strategically deployed over three years:

• Year 1 – 50% of the capital investment.
• Year 2 – 30% allocation for promising ventures.
• Year 3 – The remaining 20% for long-term sustainability.

Following the investment phase, the fund envisions exiting its portfolio companies by the sixth or seventh year, ensuring impactful and profitable outcomes.

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Gruhas’ Expanding Footprint

This marks Gruhas’ second major investment initiative. Previously, the firm collaborated with the Collective Consumer Fund, launching a Rs 150 crore fund aimed at fostering consumer-focused startups. The latest venture underscores their commitment to urban innovation, especially in light of rising urban migration and technological advancements post-COVID-19.

The Growing Role of Tech in Real Estate

According to Nirupa Shankar, Joint Managing Director at Brigade Enterprise Ltd., the real estate sector has long struggled with low productivity due to slow tech adoption. However, the tide is changing as technology is set to revolutionize efficiency, customer value, and industry standards.

With 40% of the total capital already raised primarily from domestic investors, the fund is well on its way to closing within the next couple of years, heralding a new era of sustainable urban development. Read More About Proptech Innovation