Glorax Sums up the Results of the First Corporate Real Estate Startup Accelerator
The Glorax Infotech accelerator, launched in 2020 by Andrei Birzhin, founder of Glorax Group and president of Glorax Development, has held 4 competitive startup selections in construction and development, real estate asset management, sales support and other PropTech areas. Over the year, the accelerator has received 400 applications from 17 cities in Russia, the CIS and neighboring countries, and four pilot projects have been launched. The total investment volume reached RUB 170 mln.
Most projects submitted to the accelerator in 2020 are related to process automation at construction sites and improving customer service (37% of applications). Out of this amount, the most promising projects identified by the accelerator experts are IT solutions for online demonstrations and online sales of real estate (11%), IT smart home tools (12%), the complete cycle of apartment refurbishment and its customization (7%) and internal security (7%).
The accelerator has also completed several pilot projects: one with the online service Rerooms, a one-stop shop platform to order an individual design project, refurbishment, and buy all the materials and furniture; another with the online service Realty Cloud, which allows you to check the property for good title, and also provides transaction security: the company FinCase, a developer of IT solutions for the AI-based evaluation and management of real estate; and the last one with Realtyteka, a digital platform for online real estate transactions. With the results of the pilots in mind, Glorax decided to invest RUB 100 mln in developing the real estate online transactions platform and scaling it up in the Russian market under the brand name RealPrice. The platform is built as an ecosystem, and in addition to specialized real estate sale services it also provides real estate valuation, due diligence and urgent buyout services.
The goal of the Glorax Infotech accelerator is to scale up innovative projects contributing to the digitalization of the construction and real estate sector. The accelerator will continue in 2021, with priority given to PropTech projects, especially those related to developments for smart cities, real estate timeshare programs, real estate digital finance tools, and projects based on artificial intelligence, machine learning and big data technologies.
“This has been a watershed year in terms of consumer patterns in many markets, including the real estate sector. Customers want to buy quickly, without leaving their homes, and receive a high level of service. Preference will now be given to ecosystem-type projects, which is why the major part of investments made by our accelerator in 2020 was granted to the RealPrice platform. In general, I’d like to point out that the future of our industry lies with the digitalization of internal and external processes and the introduction of technological improvements,” says Andrei Birzhin, president of Glorax Development and founder of the Glorax Infotech accelerator.