Blox, a proptech company powered by artificial intelligence, is on the verge of acquiring a controlling stake in Justo, a mandate brokerage firm with a strong presence in Maharashtra, India. The deal is valued at Rs 3.5 billion and is set to be finalised with a combination of cash and stock, according to insiders familiar with the matter.

The significance of this acquisition is magnified against the backdrop of the increasing synergy between India's real estate and the burgeoning proptech sector, which has fundamentally changed the dynamics of property transactions.

Both Blox and Justo presently have annual mandate businesses of approximately Rs 35 billion each. This strategic acquisition is expected to reinforce Blox's standing as one of the leading proptech companies in India, boasting a consolidated Gross Merchandise Value (GMV) of around Rs 80 billion across its diverse business segments. Blox will secure a majority stake in Justo through this acquisition, allowing Justo's brokers and developer partners to tap into Blox's cutting-edge artificial intelligence (AI) sales and marketing technology.

Justo is a platform that connects real estate developers with home buyers and has successfully facilitated transactions across more than 80 real estate projects, involving over 4.2 million square feet of property.

Blox, founded in 2020, is a fully integrated online real estate service that aims to streamline the home-buying experience for customers. It provides swift site visits, along with transparency and convenience throughout the comprehensive home-buying journey. Each homebuyer is assigned a relationship manager who assists with virtual and physical site visits across the city.

In May of the previous year, Blox acquired Plinthstone REMA, a property sales and marketing company, for $1.5 million, which was incorporated into its portfolio under the name "Blox Exclusive." In December, Blox secured $12 million in a series A funding round, the largest in India's proptech sector. The funding was backed by existing investors from Silicon Valley, new strategic investors, and notable angels, including Kunal Shah, founder of CRED.

Although the proptech sector in India is still in its nascent stage, industry experts believe it has significant potential for growth and development. Despite experiencing a 48% surge in the number of proptech startups in the country following the pandemic, they still account for only 6% of the total recognised startups in India. Out of approximately 65 unicorns created in India in the past year, only a handful belong to the proptech sector.

Proptech's steady growth in India over the last couple of years, propelled by the digital acceleration caused by the COVID-19 pandemic, has been instrumental in enhancing transparency and providing access to data related to transactions in a sector that has traditionally been opaque.