New Delhi, July 9 -- Gurugram-headquartered real estate developer M3M India, which is known for premium and luxury offerings in the residential real estate market, is readying to raise capital to fuel its next leg of growth, a top company executive told VCCircle.

M3M Group, which operates through two entities M3M India (setup in 2010) and Smart World (setup in 2021), has collectively delivered 30 million square feet in the NCR region and currently has 60 million square feet under various stages of construction.

It is now looking to raise around $250 million in structured debt.

"While we do not need external capital immediately for our current operations, we are in dialogue with a few alternative investment funds (AIFs) and global investment firm to raise a $200-$250 million (around Rs 1,908-2,385 crore) opportunistic line of credit to fund future land acquisitions and special situations," said Robin Mangla, president, M3M India.

The funding is likely to be raised over the course of this financial year. "The company is maintaining a zero-debt status and funding current projects through internal accruals," he added.

M3M has previously raised funding from alternative sources such as PAG and Oaktree. Back in 2020, the developer raised Rs 570 crore from American alternative investment manager Oaktree Capital through non-convertible debentures. In 2024, PAG Asia, one of the largest global alternative investment managers, invested Rs 400 crore in bonds of a M3M India group entity to refinance existing debt and acquire land.

Meanwhile, to spur its next phase of growth, the developer has set a target to deliver 7 to 10 million square feet annually on a steady-state basis.

"In FY26 alone, we delivered 10 million square feet. To support the planned growth, the group's annual construction expenditure is between Rs 3,000 to Rs 4,000 crores, which is among the top four in India," he said.

Mangla highlighted that the group has maintained a 30 per cent CAGR in sales over the last five years, ranking among the top five developers in India in terms of pre sales. "We expect to realise approximately Rs 55,000 crores over the next five years from existing projects," he said.

M3M, which is known for its massive land bank in the NCR region, annually spends anywhere between Rs 2,000 to Rs 3,000 crores on land acquisition.

Developer's profile

M3M and Smart World are present across the residential, commercial, retail and industrial segments with housing forming 65-70 per cent of their combined portfolio.

Present across eight micro-markets, including Golf Course Extension Road, New Gurgaon, Noida (Sector 94 and City Centre) and Panipat, its residential portfolio offers projects across categories: branded residences (upwards of Rs 10 crore), bridge to luxury (less than Rs 2 crore), premium (Rs 2-5 crore) and luxury (Rs 5 crore +).

In the branded residence space, the group entities recently tied up with Ellie Saab for projects in Gurugram and Noida. It previously collaborated with The Trump Org and Jacob & Co. for such projects.

"We prioritise strategic cooperation over simple financial transactions... In these partnerships, global brands provide experience in designing cutting-edge, global products, while the group provides local knowledge of approvals, construction and market price points," said Mangla.

Expansion plans

Mangla said that the group is currently evaluating strategic partnerships for upcoming office projects and expects to launch a unique commercial offering this financial year under the branded category.

For growth plans on the commercial, retail and industrial side, Mangla said that the group intends to increase its footprint across these categories over the next few years to support the large residential communities it is delivering. "For residential clusters of 3 to 5 million square feet, the group typically includes 300,000 to 500,000 square feet of high-street retail to serve the immediate community. We are also very bullish on mixed-use developments, often positioning high-street retail on the ground levels of prime expressway-facing land, with residential or office towers built on top," added.

The group recently entered the industrial space and has a 146-acre integrated township in Manesar which includes 46 acres of industrial plotting designed as a "plug-and-play" ecosystem for MSMEs and vendors of large manufacturing plants.

Going forward, the company will further increase its exposure to the NCR market and take up projects through both M3M India and Smart World, which are positioned as "complimentary rather than competitive".

"The group remains highly committed to the NCR, viewing it as a major global urban node supported by massive infrastructure such as the new Jewar airport, expressways and expanded metro connectivity. We currently hold an 11% to 15% market share in NCR," he said.

Published by HT Digital Content Services with permission from VC Circle.