Propshare, a Bengaluru based tech enabled real estate Platform focussing on high growth real estate classes raises $47mn in Series B funding from Westgate Capital and Pravega Ventures
Investee Startup/Company: PropShare (incorporated as PropertyShare online Platform Private Limited)
Funding: $47 Million (About Rs.367 Crores)
Round of Funding: Series B
Instrument: Compulsory Convertible Preference Shares (‘CCPS’)
Investors Participated: India VC firm WestBridge Capital and existing investor Pravega Ventures
Valuation and dilution: According to people familiar with the development compny has raised funds at about $170 Million (~Rs.1328 Crores) for ~27.65% (47mn/170mn*100)
About PropShare: Propshare is a technology-driven real estate investment platform founded in 2016 by Kunal Moktan and Hashim Khan (both are IIM Ahmedabad alumni) with strong experience in Real Estate Market. Platform allows users to buy and sell commercial real estate assets across the globe and gives a committed rental directly into the bank account. Platform aims to revolutionalise the real estate market in India and around the globe through its tech offering and offering liquidity at much lower investment thresholds. Currently, the property investment platform allows users to invest in Bengaluru, Mumbai, Chennai, Hyderabad, Pune and certain areas of the United Kingdom.
The first and largest technology-driven real estate investing platform in India, PropShare gives common users access to institutional-grade properties with in-place rental rates of 8–10% and returns of 17–20%.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
From Founder’s desk: Hashim Khan, Co-founder and CTO said, “With Rs 1,000 crore of assets facilitated on the platform, PropShare is the largest commercial property investment platform in India. By partnering with WestBridge Capital, we plan to grow to over $1 billion in transacted assets on the platform by expanding into new geographies and property types, while keeping technology and our investors at the core of our offering.”
Kunal Moktan, Co-founder & CEO, PropShare said, “Our focus on high quality institutional rent-yielding real estate has led to strong investor growth and rapid adoption of the platform among users for alternative investments. PropShare’s aim is to become the single largest platform for real estate investments globally. We are therefore extremely excited to partner with WestBridge Capital, who have a demonstrated history of building and partnering with high quality Indian businesses across public and private markets. Indian commercial real estate is an attractive $100 billion market with limited access to investors, as per Deepak Ramineedi, Partner at WestBridge Capital.
Company’s operating revenue for the fiscal year ending March 2021 decreased 32.7 percent to Rs 3.8 crore from Rs 5.65 crore in FY20. Annual losses for the company increased by over 55% to Rs 7.6 crore in FY21 from Rs 4.9 crore in FY20.
Purpose of Funding:
- Adding more product lines
- bolstering investor relations
- Improving platform for better customer experience and satisfaction.
- Entering new geographical locations.
- Expanding distribution channels
Through this funding, PropShare looks to expand, innovate and diversify to provide better experience for real estate buyers, thereby giving strong competition to its rivals like Hbits, Strata, Realx, Myre, Magicbricks and Housing.com.
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