Brigade Group and Gruhas Launch Earth Fund to Intensify PropTech and Sustainability in Indian Real Estate

Despite the rapid advancements in technology worldwide, Indian real estate developers invest less than 1% of their revenue in technological innovations, according to Nirupa Shankar, Joint Managing Director of Brigade Enterprises. She highlighted the stark contrast between India and the global prop-tech industry, which has attracted nearly $110 billion in investment, while India has only invested $5 billion. Speaking at the launch event of the Earth Fund in Bengaluru, Shankar emphasized that Indian developers continue to rely on outdated manual processes, whereas global players are integrating AI, automation, and smart infrastructure to enhance efficiency and transparency.

What is the Earth Fund?

To bridge this technological gap and drive sustainability in real estate, Brigade Group, in partnership with Gruhas—the investment arm of Nikhil Kamath and Abhijeet Pai—has launched the Earth Fund, a Category II Alternative Investment Fund (AIF) registered with SEBI. This ₹300-crore fund, managed under Zoiros Projects Pvt Ltd, is dedicated to investing in early-stage startups that focus on real estate, construction, and sustainability.

Investment Strategy and Focus Areas

The Earth Fund comprises a ₹200-crore primary investment with an additional ₹100-crore green-shoe option. It will target Pre-Series A and Series A startups that have developed a proven product-market fit and require capital to scale. Each selected startup will receive investments ranging between $1-2 million, with the fund aiming to build a portfolio of 10-15 promising ventures. Initial funding will be followed by subsequent investments to support the startups’ growth and expansion.

Abhijeet Pai, co-founder of Gruhas, provided further insights into the deployment strategy of the Earth Fund. “We have already shortlisted around 15 startups and plan to deploy 50% of the fund within the first year, while the remaining investment will be spread over the next two to three years. So far, we have raised 60% of the total fund, and we expect to secure the remaining capital within the next six to nine months.”

Key Backers and Industry Support

The Earth Fund is backed by industry leaders such as Nirupa Shankar, Abhijeet Pai, Nikhil Kamath, and Mohan Parvatikar, Independent Director of Zoiros Projects Private Limited. The fund’s primary focus areas include UrbanTech innovations such as prop-tech, construction technology, real estate solutions, and asset utilization. Additionally, it will invest in sustainability-driven startups working in climate tech, clean tech, smart mobility, and energy solutions. With several startups already under consideration, official investment announcements are expected soon.

Why PropTech and Sustainability Matter

Nirupa Shankar underscored the critical need for increased investment in green technologies within the real estate sector, particularly given its environmental impact. The construction and real estate industries account for nearly 20% of global water consumption and contribute to 39% of CO2 emissions. Despite this, Indian developers have been slow to adopt technological advancements that could improve sustainability and efficiency.

The Impact on Luxury Real Estate

Highlighting the intersection of sustainability and luxury real estate, Shankar noted that while commercial office spaces are increasingly embracing green building technologies, homebuyers are yet to fully adopt sustainable housing solutions. “Luxury and sustainability can coexist. While we see major office spaces integrating green technology to attract high-end clients, adoption among residential homebuyers remains slow. Many still prioritize luxury over eco-friendly real estate,” she said.

A Vision for the Future

Pai reinforced the fund’s vision, stating, “Through Earth Fund, we aim to bridge traditional real estate with emerging technologies. We are accelerating ventures that redefine urban spaces, construction, and resource efficiency. By fostering strategic partnerships, we aspire to shape a future where smart infrastructure, green buildings, and AI-powered urban planning become the norm.”

The launch of the Earth Fund marks a significant step toward modernizing India's real estate sector and promoting sustainable urban development. With its focus on PropTech and sustainability-driven startups, the fund aims to transform how Indian real estate operates, fostering innovation that aligns with global technological advancements and environmental responsibility.