Real Estate Startup Propshare Raises Fund From Westbridge & Others

WestBridge Capital and Pravega Ventures have invested $47 million (INR 367 crore) in Bengaluru-based real estate startup PropShare.

By extending distribution channels, investing in technology and people, and increasing distribution channels, the business intends to use the money to scale the platform across regions and real estate asset classes. The proptech business also intends to enhance liquidity, create innovative product lines, and increase investor relations in order to improve the customer experience.

According to the startup, PropShare has reportedly enabled INR 1,000 Cr worth of assets on the platform thus far. By collaborating with WestBridge Capital, it hopes to expand into additional regions and property kinds and increase the number of assets exchanged on the platform to above $1 billion.

Since its founding in 2016, PropShare has provided access to institutional-grade properties with returns of 17–20% and in-place rental yields of 8–10%. Ownership, management, and exiting of commercial real estate are completely handled by the platform on behalf of users, including all sourcing, due diligence, property management, and sales.

Retail investors can search for properties on the web-based platform of PropShare, purchase partial or full interests in properties, and begin receiving rent payments directly into their bank accounts. On PropShare, users may keep an eye on their portfolios and even sell their shares. The platform for investing in real estate currently allows users to make investments in Bengaluru, Mumbai, Chennai, Hyderabad, Pune, and a few locations in the UK.

On properties, it shows, among other things, diligence notes, investment parameters, yield return, and target return rates, price stabilization funds (minimum investment value), and yield return rates. In a $100 billion market that accounts for 5–7 percent of India’s GDP, PropShare competes with companies like Strata and NestAway.

PropShare, which was founded by Kunal Moktan and Hashim Khan, currently manages more than $125 million in assets. PropShare Capital, the AIF arm of the proptech business, has secured INR 700 Cr for its first real estate fund, dubbed PropShare Real Estate Fund I (PREF I).

The PREF I fund focuses on finished, income-producing commercial real estate that is leased to big-name companies in India’s tech clusters. It focuses on Grade-A commercial properties with yearly rental yields of 7 to 9 percent and an expected IRR of 17 to 20 percent during a 4-5 year hold period.

Pravega Venture, BEENEXT, and Lightspeed Ventures, among the 100+ investors with an AUM of $35 Mn+, support PropShare Capital.