SUMMARY
Led by WestBridge Capital, the round also saw participation from existing investor Pravega Ventures
PropShare allows retail investors to access institutional-grade assets with 8-10% in-place rental yields and 17-20% returns
Its AIF arm PropShare Capital recently raised INR 700 Cr in a maiden real estate fund
Bengaluru-based real estate investment startup PropShare has raised $47 Mn (INR 367 Cr) from WestBridge Capital and Pravega Ventures.
The startup plans to use the proceeds to scale the platform across geographies and real estate asset classes by expanding distribution channels and investing in technology and people. The proptech startup also plans to improve consumer experience by enhancing liquidity, adding newer product lines and strengthening investor relations.
According to the startup, PropShare has facilitated INR 1,000 Cr of assets on the platform so far. By partnering with WestBridge Capital, it plans to grow to over $1 Bn in transacted assets on the platform by expanding into new geographies and property types.
Founded in 2016, PropShare allows retail investors to access institutional-grade assets with 8-10% in-place rental yields and 17-20% returns. The platform assumes complete responsibility for sourcing, due diligence, property management and sale on behalf of users making owning, managing and exiting commercial real estate.
Retail investors can browse properties on PropShare’s web-based platform, make fractional or complete investments in properties and start receiving rent straight into the bank account. Users can monitor their portfolios and even sell their holdings on PropShare. Currently, the property investment platform allows users to invest in Bengaluru, Mumbai, Chennai, Hyderabad, Pune and certain areas of the United Kingdom.
On properties, it displays price stabilisation funds (minimum investment value), yield return and target return rates, diligence notes, and investment criteria, among others. PropShare competes with the likes of Strata and NestAway, in a market worth $100 Bn, contributing around 5-7% to India’s GDP.
Founded by Kunal Moktan and Hashim Khan, PropShare has $125 Mn+ assets under its management. Previously, the proptech startup’s AIF arm PropShare Capital has raised INR 700 Cr in its maiden real estate fund called PropShare Real Estate Fund I (PREF I).
The PREF I fund focuses on completed income-generating commercial real estate leased to multinational and blue-chip tenants in the tech hubs of India. It targets Grade A commercial properties at 7 to 9% annual rental yields with a projected 17 to 20% IRR over a 4-5 year hold period.
PropShare Capital is backed by Pravega Venture, BEENEXT and Lightspeed Ventures, among 100+ investors with an AUM of $35 Mn+.
Update | 27th June, 13:38 PM IST
The story has been edited to rectify the funding amount value.
