Construction key part of India’s economy with around 9 per cent of GDP

31 Dec 2021 CW Team

Construction startups in India are finding a place in the sun as the sector looks for new-age technologies to improve the delivery of infrastructure and real-estate projects.

The year 2020 was a washout for many businesses – but certainly not for Indian construction tech startups. A record 18 startups in the segment received equity infusions, according to data from Tracxn (see chart), although the $ 0.241 billion (bn) flow of equity into the segment was lower than the all-time high, $ 1.050 bn in 2018. 2021 promises to outperform last year, with nine startups already receiving $ 0.723 bn in equity funding.

If you look at the global picture, which is important because overseas construction tech startups like Katerra and Briq are operational in India, construction tech is one of the most active sectors for investors, with an overall equity funding of $16.5 bn in 1K+ companies, according to Tracxn. Over half, this funding was raised in the past three years (2019-2021 to date).

What’s attracting investors to construction tech startups?

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