Funding for Construction Tech Start-ups in India at Record High
Investments in construction tech start-ups in India hit record-high levels in 2021. The segment received a total funding of $104.2 million (as of June 15, 2021), the highest in the last seven years, according to data from Tracxn. Firms that have been founded since 201
Investments in construction tech start-ups in India hit record-high levels in 2021. The segment received a total funding of $104.2 million (as of June 15, 2021), the highest in the last seven years, according to data from Tracxn. Firms that have been founded since 2010 have been considered for this analysis.Construction tech essentially includes firms that create tools to execute any construction project — it encompasses marketplaces or platforms that aid in procuring physical and human resources needed for a construction project. It also includes companies that provide technologies such as 3D printing, robotics and modular construction, and tools that reduce human dependency, help execute projects in a shorter time span and at a lower cost.The pandemic and the subsequent lockdowns resulted in a decline in the construction sector’s output in 2020. However, the sector began to recover towards the end of the last year. According to data from the Ministry of Statistics and Programme Implementation, the construction segment grew by 6.2 per cent in the October-December quarter compared to a 7.2 per cent decline in the July-September quarter and a 49.4 per cent decline in the April-June quarter in 2020. That apart, the government’s increased allocation of ?5.54 lakh crore in the FY2021-22 Budget towards capital expenditure (a 34.5 per cent increase from the ?4.12 lakh crore allocated in FY2020-21) could aid demand for the construction tech space as well.