Innovative construction startups are manufacturing sustainable construction materials in India
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The population of India is growing year over year, and this has resulted in an increased demand for housing in the country. However, the fact that the construction sector consumes high energy and emits high CO2 emissions, the ill effects of construction building materials have led to a growing realization for sustainable construction materials in India as well as globally. In India, many innovative startups have emerged over the last few years. These startups are seeking to tackle the growing environmental impact caused by the construction sector by focusing on reducing resource consumption, carbon footprint, and waste output. For instance,
- Tvasta, an innovative sustainable construction materials-focused startup, makes use of 3D printing technology. Notably, the firm can build sustainable houses within a few weeks, whereas the cost of the house is also less than the cost of building a traditional house. Before building a 3D printed house, the firm puts together a 2D plan and once that is ready, the plan is used for constructing the house without the use of any conventional construction materials. In May 2022, Tvasta also forged a strategic alliance with India Cements. Under the collaboration, the two firms will work together on research and development, while exchanging the technology for creating new raw material formulations which can be used in 3d printing applications.
Through its proprietary concrete mix of construction, the firm is aiming to solve the housing problem in India by building affordable housing solutions. Notably, Tvasta is not the only player in the sustainable construction materials space. Several startups are innovating in the segment across the country. For instance,
- Zerund, another innovative construction materials startup in India, is manufacturing recycled bricks, Plastic Embedded Lightweight Bricks. Notably, the firm states that these recycled bricks are 50% lighter when compared to traditional red clay bricks. Furthermore, the recycled bricks offer thermal and noise insulation and are also earthquake and fire-resistant. Like Tvasta, the sustainable construction materials offered by Zerund reduce the cost of building significantly. According to the firm, the cost is reduced by 30%, whereas the construction time gets cut in half.
- In September 2022, Zerund also announced that the firm had raised US$1 million in a seed funding round from strategic investors including Dreamweaver Investments. The firm is planning to use the fresh capital to increase its production capacity, which currently stands at 2.5 million bricks per year. By 2026, the firm plans to increase production nine times to over 20 million. These estimates are based on the growing demand for sustainable bricks in the country. Furthermore, part of the funding will go towards expanding its distribution network across the country.
Notably, many more construction-focused startups have raised a funding round over the last few months in India. For instance,
- In October 2022, GlobalFair, a B2B building materials startup based in India that solves manufacturing and procurement problems for the building materials industry in the United States, announced that the firm had raised US$20 million in a Series A funding round led by Lightspeed. Notably, the US$20 million round is a mix of both equity and debt and included participation from India Quotient, Saama Capital, AUM Ventures, and Stride Ventures. The firm is planning to use the capital for building new products and scaling its business. Over the next few years, the firm is planning to deepen its manufacturing base in India and Vietnam. Notably, GlobalFair specializes in ready-to-install custom products for the residential and commercial construction sector in the United States.
With the growing realization of sustainable building materials, the demand for innovative products has surged over the last few years and this trend is expected to further grow over the next three to four years. Consequently, ConsTrack360 expects more capital to flow into innovative sustainable construction materials-focused startups from the short to medium-term perspective. These startups, through their innovative product lines, will continue to support the growth of the construction industry in India and in other parts of the world over the next three to four years.
To know more and gain deeper understanding of the construction market in India, click here.
