Proptech and mortgage marketplace Square Yards has raised USD 35 million (~INR 313 crore) in a new equity round led by South Korea–based Smile Gate Group, pegging the company at a post-money valuation of USD 935 million (~INR 8,360 crore).
Square Yards Capital Plans & Pathway to Listing
The company is also in advanced discussions to raise an additional USD 100 million (~INR 890 crore) through a mix of debt and equity from large private investors, according to reports. Management is preparing for an INR 2,000 crore IPO by CY2026, subject to market conditions and regulatory approvals.
Square Yards said the proceeds will support growth and scaling across domestic and international markets, building on its integrated real estate and mortgage stack that spans property discovery, transactions, home finance (via Urban Money), interiors, rentals and property management.
Performance Momentum
Square Yards reported operating revenue of INR 1,410 crore in FY25 with EBITDA of INR 46 crore, reflecting a multi‑year growth trajectory. On a trailing 12‑month basis to September 2025, revenue touched about INR 1,670 crore with EBITDA of roughly INR 120 crore, as per media reports. Square Yards Q2 FY26 revenue rose 43% year‑on‑year to INR 455.5 crore; for H1 FY26, revenue stood at INR 833.2 crore with EBITDA of INR 23 crore, with financial services contributing 60% of total revenue.
“In Q3 FY25, we marked our second consecutive year of profitability and first year of operating cash‑flow break‑even,” founder and CEO Tanuj Shori had said earlier this year, flagging operating leverage and medium‑term margin ambitions. While historical, the commentary underscores the firm’s focus on profitability through scale.
Competitive Landscape & Outlook
Founded in 2014, Square Yards competes with online and offline real estate intermediaries. Its services arm goes up against PropTiger and Anarock, while the digital marketplace competes with 99acres, Magicbricks, Housing and NoBroker—the latter entered the unicorn club in 2021. A successful follow‑on round could take Square Yards past the USD 1‑billion mark ahead of its proposed listing.
Regulatory & Funding Context
Square Yards’ latest funding adds to prior rounds from global and domestic investors. Market reports indicate the company is calibrating its capital structure—blending equity with debt—to fuel expansion without excessive dilution before the IPO. Any subsequent raise and the final listing timeline will hinge on market sentiment and clearance from regulators.
Highlights of Square Yards’ Latest Funding
- Round size: USD 35 million (≈INR 312 crore); lead investor Smile Gate Group.
- Valuation: USD 935 million (~INR 8,360 crore) post‑money
- Follow‑on talks: Evaluating an additional ~USD 100 million (debt + equity).
- FY25 results: Revenue INR 1,410 crore; EBITDA INR 46 crore.
- Q2 FY26: Revenue INR 455.5 crore, up 43% YoY; H1 EBITDA INR 23 crore; financial services ~60% of H1 revenue.
- Listing plan: Square Yards IPO (~INR 2,000 crore) targeted in CY2026.
Conclusion
With the Smile Gate–led infusion and another raise on the anvil, Square Yards has signalled intent to shore up balance‑sheet strength before it attempts an INR 2,000 crore float in 2026. Execution on profitability, the cadence of mortgage distribution and property transactions, and prevailing equity market conditions will ultimately determine how quickly it crosses the unicorn threshold and at what final public market valuation. This report is for information only and is not investment advice.
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