Quick Take
- Square Yards bags Rs 900 Cr ($95 Mn) in debt-equity mix anchored by EAAA Alternatives, with Muzinich participating.
- Round values the proptech firm above $1 Bn, turning Square Yards into India’s newest unicorn for FY27.
- Company plans another $50-60 Mn close next quarter, ahead of its Rs 2,000 Cr IPO filing with SEBI.
In This Article
Square Yards bags Rs 900 Cr ($95 Mn) in a debt and equity round anchored by EAAA Alternatives, with global credit manager Muzinich and Co also coming in, pushing the proptech firm past the $1 Bn valuation mark.
The Gurugram-based real estate and mortgage platform, founded by Tanuj Shori and Kanika Gupta Shori, becomes India’s newest unicorn in June 2026. The round arrives at a higher equity valuation than the company’s November 2025 raise of $35 Mn at $900 Mn. Square Yards is now preparing for a Rs 2,000 Cr Initial Public Offering (IPO), with a Draft Red Herring Prospectus (DRHP, filed with SEBI before an IPO) targeted shortly.
StartupFeed Insight
The structure of this round tells the real story. Square Yards is not raising large pre-IPO equity at a peak valuation, instead choosing a credit-heavy structured deal anchored by EAAA Alternatives’ Special Situations Strategy. That signals two things to StartupFeed readers: founders are protecting equity dilution ahead of the public listing, and the company has enough operating cash flow to absorb structured debt at scale. Watch this pattern. Indian proptech firms preparing for FY27 listings will increasingly pick credit over dilution. Our forecast: Square Yards files its DRHP with SEBI before September 30, 2026, and lists on NSE and BSE before March 31, 2027, at a $1.5 Bn to $2 Bn valuation band. By Dr. Mayank Raj.
Square Yards Bags Rs 900 Cr: Deal Breakdown
The Square Yards Rs 900 Cr round is a structured pre-IPO transaction, not a pure equity raise. Funds will refinance existing debt, strengthen the balance sheet, and fund expansion across India, the UAE, Australia, and Canada, the company said in its statement.
| Metric | Detail | Notes |
|---|---|---|
| Total Raise | Rs 900 Cr ($95 Mn) | Mix of debt and equity (company statement) |
| Lead / Anchor Investor | EAAA Alternatives | Special Situations Strategy (EAAA announcement) |
| Co-Investor | Muzinich and Co | Global corporate credit manager |
| Valuation | Above $1 Bn | Unicorn status confirmed (per sources) |
| Previous Round | $35 Mn at $900 Mn (Nov 2025) | Led by Smilegate Investment |
| Announcement Date | June 23, 2026 | Company press release |
The standout detail: Square Yards’ previous funding came from a venture capital firm (Smilegate) at $900 Mn. Within seven months, two credit-led investors pushed it past the $1 Bn line, an uncommon path to unicorn status for an Indian proptech firm.
About Square Yards
Square Yards is an integrated real estate and mortgage platform founded in 2014 by Tanuj Shori and Kanika Gupta Shori, headquartered in Gurugram. The company runs a full-stack proptech model spanning property search, transactions, home loans (via Urban Money), interiors (Interior Company), and rental management (Azuro). Operations span India, the UAE, Australia, and Canada. Top backers now include EAAA Alternatives, Muzinich and Co, and Smilegate Investment.
How will Square Yards use the funds?
Square Yards will deploy the Rs 900 Cr to refinance debt, fuel global expansion, and deepen its technology stack, the company said. Capital will support growth across the four operational markets and feed investment into AI-led tools such as its Sales Copilot platform, ahead of the planned IPO.
“We have spent the last few years building a highly profitable, scalable, and fully integrated platform. As we gear up for our upcoming IPO, this capital raise will provide us with the strategic firepower to accelerate our market expansion, deepen our technological moats, and continue delivering exceptional value to our customers and stakeholders,” said Tanuj Shori, Founder and CEO, Square Yards.
The plan is straightforward. Cut interest burden via debt refinancing, build a stronger pre-IPO balance sheet, and invest in product. The additional $50-60 Mn planned over the next quarter at a $1.6 Bn valuation, per industry sources, will likely sit in the equity component of the broader pre-IPO stack.
How does Square Yards stack up against rivals?
The Indian proptech sector is fragmented, with Square Yards now the largest by integrated revenue. The company recorded Rs 2,086 Cr ($223 Mn) revenue in FY26, a +48% YoY jump, with Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) of Rs 176 Cr ($19 Mn), up 3.7x.
| Company | FY26 Revenue | Key Differentiator |
|---|---|---|
| Square Yards | Rs 2,086 Cr | Full-stack proptech across 4 countries |
| PropTiger (REA India) | ~Rs 600 Cr (FY25) | Primary residential brokerage focus |
| NoBroker | ~Rs 920 Cr (FY25) | Brokerage-free rentals and sales |
What separates Square Yards is the integrated model. Urban Money, its mortgage marketplace, facilitated loan disbursals of Rs 87,831 Cr in FY26 through partnerships with over 150 banks and NBFCs, per the company statement. That mortgage layer is what neither PropTiger nor NoBroker has built at scale.
What’s Next
The DRHP filing with SEBI is the next watch point. Square Yards has guided towards a Rs 2,000 Cr IPO at a $1.5 Bn to $2 Bn valuation band, with a split of fresh issue and Offer for Sale (OFS). The additional $50-60 Mn close in the September quarter will firm up the pre-IPO cap table. Will Square Yards stick to the traditional DRHP route, or take the confidential filing path that peers like Meesho have used?
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Last updated: June 24, 2026 at 11:30 IST
Disclaimer: This article is for informational purposes only and does not constitute investment advice. StartupFeed and its authors are not SEBI-registered investment advisors. The analysis above is based on publicly available information and should not be the sole basis for any investment decision. Please consult a SEBI-registered financial advisor before making investment decisions.
Written by Dr. Mayank Raj. Published: June 24, 2026. Updated: June 24, 2026. Have a tip? Write to us at editorial@startupfeed.in.
