How to get funding for real estate startups in India?

With the blessing of modern technology and internet, new start-up plans are flourishing to change the age-old norms and bring something unique. This is a well-known fact that the real estate industry is more like a backbone of a country. Indian real estate has earned a huge attention from all over the world from the investors and the builders. Nowadays various start-up real estate business plans are also sprouting successfully all over the country; there are numerous budding entrepreneurs who are looking forward to breaking the conventional ideas of the real estate industry of India to raise the standard.

Be it a traditional business or start-ups, financing is the primary thing upon which the business stands and spreads its wings. There are many aspiring entrepreneurs who cannot fulfil their dreams to rule the world as a leading business icon because of financial inadequacy. So, it is important for any start-up to get fundraising or funding in order to develop the growth for a better future for the individual as well as for the country’s economy.

Let us have quick look on how funding helps real estate start-ups:

  1. Financial objectives: Funding always helps you to fulfil the financial goals of your business. A company needs to look upon various aspects like digital marketing, speed services, customer care services, transportation, web developers and many other things which require enough financial resources.
  2. Maintain a high-level competition in the market: Without proper financial support, it becomes difficult to maintain the business standard and quality in this highly competitive industry.
  3. Removes all the obstacles: Every entrepreneurs or businessman wish to run their business without any obstruction. Well, but it is illogical to assume that your business will not get any glitches on its journey towards the peak. Funding helps to clear the path towards the glory for your business without a second thought.

How to get the funding ultimately?

Now you might be wondering how you can get funding for your real estate startups. Well, there are several options where you might find some solution that will solve the funding issue:

  • Lodha Group: Lodha group, one of the most popular real estate developers of India has recently initiated a start-up fund facility for the real estate industry of the country. Lodha group has promised to make every possible resource on all stages of start-ups to grow the development of the business and bring the desired glory. Lodha group not only provides angel funding and VC or venture capital with the initial investment corpus of 50 crore but also looks after the high-quality business opportunity and industry contacts.
  • Create hospitality portfolios: There are some real estate firms that are specialised in creating hospitality portfolios for the identifying the business, funding and also for offering different real estate deals for the better future. These firms or organisations can easily help you to get enough funds ready from various sources for your start-up plans only if your ideas resonate with the company’s values and ethics.
  • Crowdfunding: This is quite a new door to get funds for the start-ups. Crowdfunding is basically a method that resembles taking loans or raising funds through a collective effort of a pool of people – friends, family, customers, individual investors and others. As an entrepreneur, you will need to share your business ideas and goals on a crowdfunding platform, also including the exact fund amount that you require along with the reasons. In this manner, anyone on the internet can contribute money as they wish. Crowdfunding not only helps to get a financial fund-raise but also it helps to generate a digital marketing strategy which can be the boon of your business. Among various crowdfunding sites in India Wishberry, Ketto, Fundlined and Catapooolt are notable.
  • Angel investment: Angel investment funds actually helped many world famous businesses to grow like Google, Yahoo and a few Angel investors are more like individuals are keen to invest in start-up businesses to encourage or help to grow with surplus cash or capital. Apart from helping with fund they can even advice or analyse the business plan for you; sometimes they work as a group too. Indian Angel Network, Mumbai Angels, Hyderabad Angels deserve a mention in this regard in India.
  • Bootstrapping: Often known as self-funding, bootstrapping is also another productive way from where you can get funds to grow startups in the real estate field. Bootstrapping come up with the idea to invest your own money or you can even involve your family or friends to contribute the money – to reduce the formalities and compliances regarding fund loans. It is always best to utilize or do something from your own savings rather than seeking out for money elsewhere. But of course, this is more effective when you have smaller financial requirements.
  • Money through bank loans: Banks are always there to help you with their various loan offers for business or home. They primarily offer either capital loan or funding. If you are looking for funding loan options then you might have shared all your business plans and ideas with the bank – starting from valuation details to all the reports related to the project. In India, you can get various business loan offers from the leading banks like Axis, ICICI, HDFC, Bank of Baroda and a few
  • VC funding: Companies who have high potential can easily get VC or Venture Capitals that are the professionally managed funds. Apart from financial support venture capitals offer mentorship, expertise and also evaluate the business. Nexus Venture Partners, Kalaari Capital, Canaan, Sequoia Capital, Helion ventures – all these needs to be mentioned when it comes to Indian VC funding.
  • International conferences: International conferences can sometimes also be an effective way to raise the fund for your upcoming startups. You might come across to your dream investor who will be interested in your business ideas and ready to invest his capital into your startup to encourage and help your business growth.
  • Government fund programs: Also, in the Union Budget of 2014-15 the government of India had initiated 10.000 crores start-up funds to help the upcoming business tycoons of the country.

Conclusion:

In a world of reality, every estate is real that is on this earth and under the same sky. If you are already on your way to conquer the summit but still wondering how will you cross the financial obstacles that come across, then your fear ends here. You have already got some amazing fund solutions that can help you to cross all the bumps throughout the journey. Because after all there is nothing that can stop you from getting what you truly desire.

Also Check :

How to Get Funding for a Startup in India

Comments

comments