Property Share Raises Funding From Japanese Firm Asuka, Beenext, Others

Bengaluru-based Property Share has raised an undisclosed amount of funding in a round led by Japanese asset management firm Asuka, existing investors Pravega Ventures and Singapore-based BEENEXT.

The platform claims to manage $7.5 Mn (INR 50 Cr) worth of commercial and residential properties.

Talking about the 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).”

Founded in 2014 by IIM Ahmedabad alumni Kunal Moktan and Hashim Khan, Property Share is a tech-enabled real estate investment platform.

The online marketplace allows users to directly own completed real estate with other like-minded owners. It allows investors to purchase and lend or borrow against fractional shares in completed rent-generating residential and commercial properties.

It facilitates co-ownership, manages the property on behalf of investors and sells the property after 3-4 years. Through its platform, Property Share allows investors to diversify their investments, instead of investing all their savings in one property.

The startup will utilise the recently raised capital for technological upgrade and recruitment across areas such as investment, operations and technology.

As per an IBEF report, the Indian real estate market is expected to touch $180 Bn by 2020. The housing sector alone contributes 5%-6% to the country’s Gross Domestic Product (GDP). According to data released by Department of Industrial Policy and Promotion (DIPP), the construction development sector in India has about $24.19 Bn Foreign Direct Investment (FDI) equity in the period April 2000-March 2016.

In January 2017, real estate developer Lodha Developers Pvt. Ltd launched its maiden investment fund for startups focussed on smart city solutions and the overall real estate sector. With an initial investment corpus of about $7.3 Mn (INR 50 Cr), the company will provide angel funding or venture capital, business opportunities, industry contacts and mentorship.

Other startups in the real estate space include QuikrHomes, Housing.com, MagicBricks, Nobroker, etc.

This development was reported by ET.