Square Yards targets 40-50% revenue growth in FY27 as fintech biz scales

Proptech unicorn Square Yards expects 40-50 per cent revenue growth in FY27, driven by expansion in fintech, AI-led initiatives and broader real estate services

Proptech Unicorn Square Yards is eyeing 40-50 per cent year-on-year (Y-o-Y) revenue growth for 2026-27 (FY27).

 

According to cofounder and chief technology officer (CTO) Vivek Agarwal, there is large headroom for expansion across the company’s real estate and financial services spaces.

 

“We aim to maintain revenue growth of anywhere between 40 and 50 per cent Y-o-Y with our margins expanding accordingly,” Agarwal said in an interaction with Business Standard.

 

Square Yards reported revenue of around ₹2,086 crore in FY26, up 48 per cent Y-o-Y. Its earnings before interest, taxes, depreciation and amortisation (Ebitda) stood at around ₹176 crore, a 3.7-fold increase from the previous financial year.

 

 

Agarwal attributed the company's growth to a combination of execution, profitability and breadth of its offerings.

 

“Beyond the numbers, we have built an ecosystem of services spanning the entire real estate value chain — from transactions and home loans to interiors, rentals and property management. This overall umbrella of services, covering every aspect of the homebuyer's journey, together with our growth and profitability, is what has resonated with investors,” he said.

 

In FY26, Square Yards’ fintech services arm Urban Money contributed over 50 per cent of its overall revenue while real estate transaction services accounted for 40 per cent. Its interior design arm interior company and other digital products and services contributed around 10 per cent.

 

Urban Money gave loans worth ₹87,831 crore during FY26, taking cumulative disbursals to ₹2.15 trillion. The company plans to deepen its mortgage business, expand into other lending products and enter the wealth and insurance distribution segments. It believes its current market penetration leaves significant room for growth.

 

“We are the largest player in this segment, even though the industry remains highly fragmented. Despite being the largest player, we hold only around 3-5 per cent of the overall market. In both real estate and home loans, the headroom for growth from here is enormous. We believe that at a mature stage, we should be able to capture around 20-25 per cent of the overall market share in each of the segments we operate in," Agarwal said.

 

Square Yards also remains open to acquisitions. Agarwal said the company previously acquired businesses in property management, augmented reality/virtual reality (AR/VR) and data intelligence. He is now evaluating opportunities in the wealth space, including mutual funds and insurance, where it can leverage Urban Money's distribution network.

 

Square Yards recently raised $95 million. On valuation, Agarwal said investors should view Square Yards as a technology company rather than a traditional real estate business.

 

“The other factor is that we are digitising the real estate value chain in a way that no other proptech player has been able to do. We have connected various pieces of this value chain into one integrated journey,” he said.

 

The company is also betting heavily on artificial intelligence (AI), though Agarwal does not expect the technology to replace people in the sector.

 

“Our view is that AI should assist our human agents in becoming more productive and closing more transactions, rather than replacing them,” he said.

 

He added that AI currently handles the first customer interaction, lead qualification and requirement gathering before the relationship manager takes over.

 

He said AI has accelerated product development and improved productivity across technology and marketing teams.

 

While there has been some impact on entry-level hiring, new AI-led initiatives have created additional opportunities, resulting in no major change in overall hiring.

 

On the housing market, Agarwal said the recent moderation in sales reflects a supply mismatch rather than weakening demand.

 

“Our view is that what looks like a slowdown is actually a supply problem, not a demand problem,” he said.

 

According to him, developers have increasingly focused on premium housing after prices surged following the pandemic.

 

But affordable and mid-income housing continues to witness strong demand whenever projects are launched.

 

He added that structural drivers, such as rising urbanisation and the aspiration to own homes, remain intact and should continue to support long-term growth of the residential market.

 

Regarding an initial public offering (IPO), Agarwal said it remains “on the horizon” but the company has not announced any timeline.

 

Additionally, the company plans to continue investing in AI, infrastructure, talent, newer business verticals and brand building as part of its long-term growth strategy.