HDFC Capital Acquires Minority Stake in PropTech Startup TruBoard

HDFC Capital Acquires Minority Stake in PropTech Startup TruBoard

HDFC Group's real estate private equity arm has acquired an 8.5% stake in the Mumbai-based PropTech startup TruBoard for an undisclosed amount. The investment was made via its tech platform H@ART (Housing and Affordable Real Estate and Technology).

Investment Details

In its regulatory filing from May, HDFC Bank indicated that the deal would entail an investment of INR 7.28 Lakh. The bank entered into a share subscription agreement to acquire 1,043 equity shares of TruBoard at INR 698.77 per equity share, resulting in a total investment of INR 7.28 Lakh.

HDFC Capital’s parent entity, HDFC Bank, informed the bourses about the stake acquisition on May 30, 2024. This strategic move is expected to bolster the startup's capabilities and expansion plans.

Strategic Expansion Plans

The proptech startup TruBoard plans to leverage the fresh capital to fuel its expansion into international markets, with a focus on residential and commercial real estate, as well as warehouse and data centers.

Co-founder Vipul Thakore stated, “We are poised to accelerate our growth, innovate at a faster pace, and make a greater impact. We will continue to strive for excellence and innovation.”

Innovative PropTech Solutions

Founded in 2020 by Nandkumar Surti, Srickant Rajagopal, and Vipul Thakore, TruBoard offers multiple AI-driven platforms to provide insights for asset management of real estate projects. The startup provides three main platforms:

• TruGenie: Asset management of under-construction real estate projects.
• TruGreen: Asset management of renewable energy projects.
• TruCollect: Collection management of retail loan portfolios.

TruBoard claims to manage $1.8 billion in assets under management (AUM), 1 GW of renewable energy assets, and 700 km of road assets, among other real estate assets.

HDFC Capital’s Commitment to PropTech

HDFC Capital’s managing director and CEO, Vipul Roongta, emphasized the critical role of technology solutions in real estate development and asset management. “Our investment in TruBoard is part of the H@ART initiative, set up to invest and partner in technology companies that bring efficiencies to the real estate ecosystem,” he said.

This development comes over two years after HDFC Group's real estate private equity arm committed to undisclosed investments in 15 proptech startups under its H@ART initiative. Besides its investment in TruBoard, HDFC Capital has backed other companies such as Provident Housing, Loyalie, HomeExchange, and Monsoon CreditTech.

HDFC Capital was established by HDFC in 2016 and serves as the investment manager to four SEBI-registered Category II Alternative Investment Funds (AIFs) with a combined net worth exceeding $3 billion.