India's 'Full Stack' PropTech Platform Square Yards Sees Bumper Q3 as It Heads for Full Year Profitability

The Indian real estate platform operator Square Yards saw 45% year-on-year revenue growth and a return to profitability in the third quarter of the company's financial year (three months ended 31st of December).

Highlights from the Gurgaon-based company's report for the period include:

• GTV (Gross Transaction Volume) grew 54%.
• Revenue for the first nine months of the financial year grew 46% against the comparison period.
• Gross profit margin of 25% and an EBITDA margin of 6%.

Founded in 2014, Square Yards is a 'full stack' Proptech platform operating search and discovery marketplaces for new-build and secondary real estate, a mortgage company (Urban Money), a home renovation business, and a property management offering. Although around 80% of the company's revenue came from its home market in Q3, it also operates in markets such as the UAE and Canada which have a large Indian ex-pat population.

Unlike most real estate marketplace operators, Square Yards operates a profitable and growing mortgage business which represents close to half of its overall revenues. Its Urban Money financing brand led the way in Q3 with a 58% jump in revenue year-on-year and is on track to close the financial year at a GTV of $5.5 billion.

Its real estate business, which employs in-house agents on the primary real estate side, saw its order book grow by 40% compared to the third quarter of the 2024 financial year, while Square Yards' nascent home renovations business saw revenues grow by more than 50%.

As co-founder Tanuj Shori told Online Marketplaces in a recent interview (below) Square Yards is gearing up for an IPO. Partly in preparation for the scrutiny that comes with that process, the company has disclosed its financial performance to the industry for several years.

The fourth quarter of the Indian financial year (the three months ending March 31st) is historically the strongest for real estate companies operating in the country, and Square Yards is anticipating cash-flow positivity for FY25 with an EBITDA margin of around 5%. This would mark the company's second consecutive year of profitability, and first year of operating cash flow break-even.

Square Yards expects full-year revenue of between $170-180 million—a figure which would represent a compound annual growth rate of around 55% over the last four years.

Although Square Yards is not India's market leader in terms of traffic, the company claims that it is the country's only profitable real estate portal operator and says that if it hits its revenue targets in Q4 it will be around three times bigger than any other player.