Square Yards’ Upcoming DRHP & IPO Plan
1. IPO Size & Timing
- Square Yards plans a significant IPO of ₹2,000 crore (~$233 million) under its DRHP filing in the current financial year, i.e., by March 2026 (startupnews.fyi).
- The valuation is expected between $1.5–2 billion (financeoutlookindia.com).
2. Fund Allocation
- The ₹2,000 crore issue will be equally split into:
- Primary issuance – fresh equity to support business expansion and debt reduction.
- Offer-for-sale (OFS) – existing shareholders (especially early backers) exiting (financeoutlookindia.com, m.economictimes.com).
3. Use of Proceeds
- Significant portion is earmarked for:
- Debt reduction.
- Investor exits (including early funds like Reliance Group, an 8% stakeholder) (financeoutlookindia.com).
Company Overview & Financial Highlights
📍 Business Snapshot
- Founded in 2013, Square Yards is a full-stack proptech firm offering:
- Property discovery, transactions, mortgage brokerage.
- Rentals, home décor, property management.
- Presence spans 100+ cities across 9 countries, with ~150,000 agent partners (financeoutlookindia.com).
📈 Recent Financial Performance
- FY25 operating revenue stood at ₹1,410 crore, up 40.9% YoY.
- Gross profit increased to ₹316 crore (+51.9%) from ₹208 crore in FY24 (financeoutlookindia.com).
- Company targets ₹2,000 crore revenue and ₹200 crore EBITDA by FY26 (financeoutlookindia.com).
- Achieved operational profitability in FY25, reporting positive EBITDA (~₹46 crore) .
Why Now?
- Strong Growth Trajectory
Rapid YoY expansion in revenue, GMV, and digital services suggests favorable market timing. - Proptech Momentum
Real estate tech is attracting investor attention, and Square Yards is well-positioned in the full-service proptech space. - Funding Demand
Funds required for debt reduction and enabling exits for early shareholders.
What the DRHP Will Cover
Expect coverage on:
- Financial statements: revenue, profit/loss, margins.
- Business operations: verticals, tech stack, customer base.
- Risks: market fluctuations, competition, regulatory compliance.
- Management & governance: director profiles, shareholding.
- IPO specifics: price band, share allocation, underwriters.
What to Watch
- SEBI approval and exact filing date—likely in coming quarters.
- Route: Square Yards may opt for a confidential filing (privileged option) or the standard public route (startupnews.fyi, financeoutlookindia.com).
- Investor appetite: both in domestic and global markets, given tech proptech sentiment.
- Post-IPO valuation: ability to sustain the $1.5–2B valuation hinges on continued growth and profitability.
TL;DR
| Item | Details |
|---|---|
| IPO Size | ₹2,000 crore (~$233M) |
| Valuation | Targeting $1.5–2B |
| Timing | Filing DRHP by March 2026 |
| Usage | Debt repayment + investor exits |
| Financials | FY25 revenue ₹1,410 cr (+41%), gross profit ₹316 cr |
| Profitability | Operational EBITDA positive FY25; aims ₹200 cr EBITDA FY26 |
| Business | Full‑stack proptech across 100+ cities, 9 countries |
Final Thoughts
Square Yards appears poised for a strong IPO launch supported by robust growth metrics, expanding margins, and a full-service real estate platform. The ₹2,000 crore DRHP marks a strategic step toward market maturity, enabling both capital raise and early investor exits.
If you’d like, I can track the DRHP filing in real time and share updates as SEBI disclosures emerge.