The Indian proptech market is a huge and diverse field with real estate, hospitality, co-working, co-living, interior design, and construction technology, and it has already demonstrated a tremendous resurgence in 2025. The industry has managed to regain the attention of investors who had left owing to difficult economic times in 2023, and this has caused a significant surge of capital. The increased interest is entrenched in the fast adoption of innovative technological developments.
The prevalence of artificial intelligence, data analytics, and automation has entirely changed the way the industry goes about property discovery, asset management, construction efficiency, and the customer experience in general. Through the use of such tools, startups are currently coming up with more advanced and efficient solutions that will attract both consumers and institutional investors.
Funding milestones and integrated business models
In 2025, the proptech industry as a whole raised over $550 million in capital spread among 32 individual transactions. These phenomenal figures were led by a few significant players in the industry that have managed to scale their operations. At the forefront was the construction technology and building materials platform Infra.Market that raised approximately $175 million.
Such a transaction was specifically significant because it represented more than 30% of the total capital raised in the proptech sphere throughout the year. The other notable parts of this funding figure were the hospitality major OYO, as well as the real estate brokerage company Square Yards, the latter of which was able to raise a $35 million funding round. These figures highlight a strong desire to make investments in ventures that will be able to show scale and market dominance in their niches.
The major trend of the 2025 funding environment is the evident trend in investor preference towards full-stack and transaction-based proptech. During earlier cycles, most of the focus was on the platforms that were classifieds-only and that were mainly discovery engines. Shareholders are now focusing more on startups that demand further monetization and have end-to-end control over property transactions.
This development marks a shift towards a more integrated business model where businesses have control over the whole value chain the preliminary discovery to the ultimate closing of a transaction. This full-stack strategy will allow proptech startups to capture higher margins, guarantee quality, and offer a seamless experience to the end-user, which will ultimately lead to more sustainable long-term development.
Public market wave and market evolution
The year 2025 was also the point of departure of the co-working segment, with a wave of companies moving to the public markets. Three of the biggest players in this category, which had successfully gone to the stock market in the year, are WeWork India, IndiQube, and Smartworks. These firms were also pre-IPO fundraising giants leading up to their listings, adding to the overall amount of capital consumed in the sector.
The shift toward initial public offerings is an indicator that the proptech sector is approaching the stage of maturity when established players can obtain liquidity and expansion by conducting public market offerings. The prominence of these co-working companies indicates a larger stabilization and professionalization of the flexible workspace sector in India that has become a permanent element of the business real estate environment.
To fully understand the importance of the money raised of $550 million raised in 2025, it is important to put it within the framework of the performance of the sector in the past. The Indian proptech industry has been characterized by radical changes in the last few years that resemble the instability of the macro market environment. The sector had enjoyed the wave of startup financing in India in 2021, with an astonishing investment of $1.56 billion worth of funds in the sector.
This trend started to change in 2022 when the economic situation in the world changed, and the funding started to reduce, which resulted in the 2023 crisis. The revival in 2024 has led to the consistent increase in 2025, meaning that the sector has not yet come back to the record-high level of 2021, but it has settled on a global and more sustainable upward trend with regard to the core technological value.
Conclusion
The presence of a high-level maturation of the sector is observed in the performance of the Indian proptech sector in 2025. Startups are demonstrating that they can handle the complexities of the real estate and construction lifecycles by abandoning the basic listing service model and moving to full-stack models that are technologically advanced.
The backing of high-value dealings by companies such as Infra.Market and the successful IPOs of co-working giants are a good indicator of a well-developed ecosystem that is capable of supporting early-stage innovation and late-stage exits. The ability to raise over $550 million in the current year will act as a testament to the resilience of the industry and the significance of the industry in the future of the digital economy in India, as the industry continues to integrate AI and data analytics into its operations.
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