hBits, a Mumbai-based proptech real estate business, has secured INR 20 Cr ($2.6 Mn) in a strategic fundraising round led by a group of institutional and angel investors.
IIFL Chairman Nirmal Jain, Incred Capital, Jungle Ventures’ former executive Jayesh Parekh, and senior Nomura Services employee Awdhesh Krishna were among those in attendance.
The cash will be used by the fractional ownership platform to grow its footprint, scale up customer acquisition, and ramp up purchase of additional assets.
The money will also be used to strengthen the startup’s technical stack, allowing it to focus more on user experience and transaction security on the platform.
Founded in 2019 by Shiv Parekh, hBits focuses primarily on the fractional ownership market and allows users to invest in Grade A pre-Leased property.
The fractional ownership model allows users to pool their money and invest in assets without high risk exposure and without a huge financial undertaking.
“The concept of fractional ownership is the next big thing in commercial real estate market in India…We take care of several critical aspects of investing right from discovery until the liquidation of properties.
“hBits helps investors with all preliminary processes such as due diligence, procurement of the title document of the asset, and overall asset and peer group comparison; fractional ownership platforms attract investors interested in building future income,” said hBits CFO Samir Bhandari.
Meanwhile, the startup presently manages eight assets worth INR 150 Cr. The business maintains roughly 1.50 lakh square feet of space in Mumbai neighbourhoods like Andheri and Bhandup.
Tenants at these properties include household names like IIFL, ATPI, and ICICI Bank.
hBits intends to sell 40 new Grade A properties and attract INR 1,000 Cr in real estate investing this year.
In terms of future goals, the firm stated that it intends to expand and have a presence in the country’s “top six cities” by the end of next year. hBits claims to have 30,000 investors on its platform, with the bulk of them holding managerial positions in international corporations.
hBits CEO Parekh continues to be bullish about the startup’s addressable market and the overall fractional ownership space.
“Fractional ownership is gaining momentum with new players joining the band. The market is becoming competitive and exciting for everyone.
“Investors are taking up opportunities in a day for Grade A assets…We believe that investors in Fractional Ownership in Grade A assets will outnumber the number of properties available for investments,” added Parekh.
hBits also plans to deploy blockchain technology to ease the process of executing transactions and embed further transparency in transactions.