Bengaluru-based proptech startup Landeed has raised INR 19.5 ($2.5 million) in a Pre-Seed funding round from Clutterbot CEO Justin Hamilton, CRED’s Kunal Shah, Yellow Card’s Chris Maurice and Third Prime VC’s Christian Kaczmarczyk among others.
Angel investors Manmohan Chandola and nine other Y Combinator alums also participated in the funding round. The startup plans to use the new funds to accelerate product development and build a comprehensive and standardized property documentation search system.
In addition to its mobile app, the startup is also launching a desktop platform for property care and transactions to help multi-stakeholder businesses. The startup also plans to issue title insurance.
Founded in 2022, the startup believes that in a country like India, where 67% of all court cases deal with land-related disputes, Landeed makes due diligence on assets simple for all parties to engage, communicate and close deals. The startup claims that over 100,000 property owners and agents have already used Landeed to buy, sell and build properties.
The Landeed mobile app further helps owners, agents, developers and legal advisors review real estate records for buildings, loans and real estate transactions.
ZJ Lin, Sanjay Mandava and Jonathan Richards, Founders of Landeed, said, “We believe there are much bigger segments in India than title insurance and we plan to enable the embedding of title on the blockchain in the coming months.”
Kaczmarczyk, Director of Third Prime VC, said, “They (the Landeed team) will become a critical element in ensuring smooth real estate transactions in India and over time in emerging markets.”
He added, “Additionally, their ability to use web3 technology will only make the solution more permanent and transparent.”
In India, where land ownership largely follows a ‘presumed ownership’ model and property buyers do due diligence without a single title document, Landeed property ownership search engine aims to streamline the process.
For the uninitiated, the title is referred to as the rights associated with real property, and a title search becomes essential to determine and confirm legal ownership of a property when undergoing any new transaction. On the other hand, title insurance protects lenders and home buyers from any financial loss due to title defects.
The startup sees scope for work more in the space beyond the title insurance vertical, which was recently introduced in India and has a market of nearly $25 billion in the US.
In the larger proptech segment, which is dominated by large startup players such as NoBroker and PropTiger, who largely operate as technology platforms for online property rental, purchase, documentation and more, Landeed is part of a relatively newer sub-segment.