HDFC Capital Advisors to increase stake in Loyalie

20 Apr 2023 , 11:38 AM

Amid a spike in the adoption of technologies in the Indian real estate market, HDFC Capital Advisors will increase its stake in proptech firm Loyalie IT Solutions (formerly renamed as Reloy)  to 9.6% from the current 7.2%. 

HDFC Capital Advisors will purchase 1.67 lakh compulsory convertible preference shares (CCPS), which after allocation will be equivalent to an extra 1.8 to 2.4% stake in Loyalie (Reloy), according to a regulatory filing on Wednesday.

It is proposed to purchase the preference shares for Rs 89.81 per equity share, bringing the total transaction cost to Rs 1.49 crore.

For Rs1.1 crore in March of last year, HDFC Capital purchased a 7.2% ownership holding in Loyalie IT Solutions Pvt Ltd (Reloy).

Reloy, a company founded in 2018 by Akhil Sharaf, has been collaborating closely with leading real estate developers to design the ideal home ownership experience through their customer loyalty programs.

Housing Development Finance Corporation (HDFC) reported in the regulatory filing that its subsidiary HDFC Capital Advisors Ltd (HCAL) ‘entered into another share subscription agreement for the acquisition of CCPS of Loyalie on April 18 this year, which post allotment, would entitle HCAL to approximately 1.8 to 2.4 percent stake in Loyalie on a fully diluted basis.’

HCAL has suggested investing in Loyalie as part of its H@ART initiative program, which invests in innovative firms in order to enhance the real estate industry.

Real estate brokerage services are offered by Loyalie (Reloy). It is in the business of providing marketing plans and customer-proposed loyalty and reward bonuses.

From Rs 4.33 crore in the complete prior year to Rs 11.45 crore through February of the 2022–23 fiscal year.

Reloy raised Rs5 crore from investors in a pre-Series-A round in January of last year.

Inflection Point Ventures, Fawkes Fund, the family office of Greenpanel & Greenlam, and more than 50 illustrious angel investors led the round.

The startup is present in all major cities and collaborates with companies like Shapoorji Pallonji Real Estate, Mahindra Lifespace Developers, and Godrej Properties.

The proptech businesses in India got a total of USD 3.42 billion in private equity capital between 2009 and June 2022, per data from Housing.com.

In the past three years, there has been a noticeable growth in the use of cutting-edge technologies to improve the customer and consumer experience across the real estate life cycle. Examples of these technologies include artificial intelligence (AI), the internet of things (IoT), and virtual reality.

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