Square Yards, online to offline (O2O) real estate transaction player, has raised $10-million investment in the form of convertible notes from multiple individual investors primarily based outside India.
The notes are issued for a fixed term at a pre-determined coupon rate and with an option to convert into equity (at a discount) on reaching the next funding milestone.
Combined with the recently announced $12-million equity funding from the private equity arm of Anil Ambani-led Reliance Group, the new investment takes the total amount of funds raised by the company to approximately $33 million since its inception in 2013.
Tanuj Shori, Founder and CEO, Square Yards, said, “We wanted to maintain a healthy mix in our balance sheet without diluting too much of equity at this stage of our growth. The new financing would help us accelerate our expansion into newer international geographies and at the same time strengthen our existing distribution network in 10 plus countries.”
Kanika Gupta Shori, Founder & COO, Square Yards, added: “For this latest investment round, we reached out to our own set of real estate clients in International locations through our NRI sales teams. The fact that the majority of these new funds have been invested by our existing clients is a testimony to the trust and confidence they have in us.”