Lighthouse Funds, a private equity firm, has invested 300 crore rupees (US$36.1 million) in Knest Manufacturing, a company specializing in construction technology.

Founded in 2015, Knest focuses on next-generation building systems, including aluminium frameworks and patented hydraulic safety screens.

The investment will enhance the company’s research and development.

It will also increase manufacturing capacity and support backward integration efforts.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ India’s construction boom creates a $1.4 trillion opportunity for tech-enabled solutions

Lighthouse Funds’ investment in Knest reflects the massive growth potential in India’s construction sector, which is projected to reach $1.4 trillion by 2025 with an annual growth rate of 11.2% 1.

This rapid expansion is creating urgent demand for innovative building technologies that can address the industry’s persistent challenges of project delays and rising costs.

The construction sector currently contributes approximately 8-9% to India’s GDP and employs around 33 million people, making it a critical economic driver 23.

Traditional construction methods are increasingly seen as insufficient to meet the pace and scale of development, especially with the continued expansion of urban centers and growing infrastructure needs.

Knest’s focus on aluminum framework technology addresses a specific pain point in the industry where conventional methods are time-consuming and costly, often leading to project delays and increased property prices 2.

2️⃣ Sustainability becoming a competitive advantage in construction technology

Knest’s emphasis on reusable construction systems aligns with a broader shift toward sustainable building practices in India, where the construction sector accounts for 38% of annual primary energy use and 32% of national greenhouse gas emissions 4.

The company’s aluminum framework system, designed for 150-200 reuse cycles, directly addresses the environmental impact of traditional timber-based formwork that contributes to deforestation and construction waste.

This sustainability focus mirrors industry forecasts, with the World Green Building Council anticipating over 10 billion square feet of green-certified space in India by 2025 5.