PropShare Capital raises Rs 80 cr from online participation by 150 investors
New Delhi: Real estate startup PropShare Capital has raised Rs 80 crore from online participation by 150 investors. The money has been raised for firm’s corona distressed opportunities portfolio management scheme- Distress Opportunity Fund I (PDOF I).
The investors include high net-worth people and family offices. Some retail and institutional investors also participated in the funding round.
PropShare Capital is a technology platform that lets people make investment in good commercial real estate opportunities.
“While the funding requirement was over Rs 500 crore, we chose to make a first closing in 2 weeks in order to be in a position to deploy money fast in distressed commercial real estate opportunities become available,” said Kunal Moktan, CEO and co-founder, PropShare Capital.
The firm is majorly looks at opportunities emerging from commercial real estate which is leased out to MNCs. It presently manages about Rs 330 crore of investments. The company makes it possible for people to invest in smaller ticket sizes of Rs 25 lakh-50 lakh also.
Moktan says that all the tenants of the properties of the PropShare have paid rent during the lockdown. For MNCs that have offices in India, the rents are very low for them and in US Dollar terms, the rents have fallen by 5 percent already due to falling value of India Rupee against the US Dollar.
He also said that due to the corona pandemic and the resultant economic slowdown everyday, companies are looking at getting rid of commercial real estate that they own for no-core business activities. This presents very good opportunity for investors who are looking at investment in real estate, especially commercial real estate.
The Bengaluru-based company has about 40,000 users and facilitates investment for NRIs as well. The Baord of Direcprs of the company include Rohit Jain, Partner, Pravega Ventures, Vaibhav Agrawal, Partner, Lightspeed Venture Partners and Dirk Van Quaquebeke, Board Observer.