As Square Yards prepares for a potential $250-300 million IPO, the proptech startup is banking on a diversified growth strategy that extends well beyond traditional property listings. This strategic pivot is crucial as the company seeks to attract investors in a competitive landscape. With a reported positive EBITDA of ₹176 crore in FY26 and a 48% revenue increase to ₹2,086 crore, Square Yards is demonstrating strong financial health. Notably, its fintech arm, Urban Money, has become a significant growth driver, now contributing nearly 60% of the company’s total revenue, surpassing its core real estate business.
### Square Yards’ Fintech Bet
Urban Money, initially launched as a home loan distribution business, has expanded into a comprehensive financial services platform. It offers a range of products including home loans, loans against property, business loans, and personal loans. Mortgage loans dominate this segment, comprising 86% of the vertical’s gross transaction value (GTV) of ₹87,831 crore in FY26. While margins in loan distribution are generally lower, this segment has become the company’s primary revenue source. Square Yards operates as a distribution platform, partnering with over 95 banks, non-banking financial companies (NBFCs), and financial institutions, making it a key sourcing partner for many major private banks in India.
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### Competitive Landscape and Funding
Founded in 2014 by Tanuj Shori and Kanika Gupta Shori, Square Yards competes with established players like NoBroker, MagicBricks, and 99acres. However, its unique approach of monetizing customer relationships beyond the initial property transaction differentiates it from competitors. The company has secured over $114 million in funding from investors such as Reliance Group, ADM Capital, and Bennett Coleman & Co Ltd (BCCL). Recently, it raised $35 million from South Korean venture fund Smilegate VC, valuing the company at $900 million pre-money. This financial backing has positioned Square Yards well for its planned IPO by 2027-28.
### Implications for India’s Startup Ecosystem
Square Yards’ approach highlights a growing trend among Indian startups to diversify revenue streams and leverage fintech innovations. By expanding into financial services, the company not only enhances its market offering but also taps into the booming fintech sector in India, which has seen significant investor interest. This move could inspire other proptech startups to explore similar diversification strategies, potentially reshaping the competitive landscape. Moreover, the success of Square Yards’ fintech arm underscores the importance of building strategic partnerships with financial institutions to drive growth.
As Square Yards advances towards its IPO, its performance will be closely watched by investors and competitors alike. The company’s ability to maintain profitability while expanding its fintech offerings will be crucial in determining its valuation and attractiveness in the public market. For founders and engineers, the company’s trajectory offers insights into the potential of integrating fintech solutions into traditional business models, a trend that could become increasingly prevalent in India’s tech ecosystem. Investors should monitor how Square Yards leverages its fintech capabilities to sustain growth and achieve its public market ambitions.
