The Confederation of Real Estate Developers’ Associations of India (Credai) and startup incubator and accelerator Venture Catalysts have partnered to set up a $100 million proptech fund to invest in real estate startups.

The fund will invest in early- to growth-stage startups catering to all the significant real-estate segments including residential, commercial, institutional (hotels, schools, hospitals), and industrial (warehouses, factories).

“With the rapid development in the proptech domain, the use of AR/VR (augmented reality/ virtual reality) or AI (artificial intelligence) to help homebuyers expedite the process of closing deals will help provide developers with better liquidity as the processes gradually become more efficient, resulting in enhanced asset returns, decreased friction, and increased transparency,” Harsh Vardhan Patodia, president, Credai, said in a statement.

As part of the programme, Credai will provide startups with mentorship and access to its network of over 13,000 members from 256 different industrial fields in real estate, such as developers, vendors, channel partners, promoters and others.

“Real estate was one of the few sectors that witnessed the adoption of technology even before the pandemic hit. However, in the post-covid era, this adoption has further increased to boost sales and experience. Hence there is a need for a dedicated fund that would help propel growth in the sector. Through this fund, we expect to back some very interesting and innovative startups in the coming months,” said Anuj Golecha, cofounder, Venture Catalysts.

Venture Catalysts is an early backer of hospitality unicorn Oyo. In August 2020, the Mumbai-based startup accelerator also roped in Oyo founder and chief executive Ritesh Agarwal as a mentor and advisor. Other real estate startups in its portfolio include co-living space provider Grexter; home down payment assistance platform Home Capital; and furniture and appliance rental provider Rentomojo.