Bengaluru-based Property Share, has raised an undisclosed amount of funding in its fresh round, led by Japanese asset management firm Asuka, along with participation of existing investors Pravega Ventures and Singapore-based BEENEXT.
The startup will utilise the funding raised in the current round for technological upgrade and recruitment across areas such as investment, operations and technology.
Founded in 2014 by IIM Ahmedabad alumni Kunal Moktan and Hashim Khan, Property Share is a tech-enabled real estate investment platform. It allows users to directly own completed real estate with other like-minded owners. It also allows investors to purchase and lend or borrow against fractional shares in completed rent-generating residential and commercial properties.
Commenting about the business model, founder Kunal Moktan said,
We have about 15 properties under management. We try to find properties that are likely to make 15-20% returns per year for investors in real estate. We have about $4 Mn in assets under management (AUM).
The platform claims to manage $7.5 million (INR 50 Cr) worth of commercial and residential properties. It facilitates co-ownership, manages the property on behalf of investors and sells the property after 3-4 years.
It serves as a platform that enables investors to diversify their investments, instead of investing all their savings in one property. With Property Share, you can invest as little as Rs. 5,00,000 to own a share of a high quality development and receive monthly rents.
As per a report from IBEF, the Indian real estate market is expected to touch $180 billion by 2020. The housing sector alone contributes 5%-6% to the country’s Gross Domestic Product (GDP). According to DIPP, the construction development sector in India has about $24.19 billion Foreign Direct Investment (FDI) equity in the period April 2000-March 2016.