Fractional ownership platform hBits raises RS 20 crore from angel investors
- ByStartupStory | September 12, 2022
hBits, a commercial real estate firm that provides investors with fractional ownership (FA) in Grade A buildings, has acquired Rs 20 crore in an angel fundraising round. Nirmal Jain, the Chairman and Founder of IIFL, Incred Capital, Part of The Incred Group, Jayesh Parekh, ex-Managing Partner, Jungle Ventures, and Awdhesh Krishna, ex-Managing Director, Snow Leopard (Kirloskar Family Office) and Global Head of HR, Wholesale Corporate Banking at Nomura Services Limited are among the investors in the round.
The funds, as claimed by the company, will be used to buy additional assets under management (AUM), attract new customers, and expand the business to newer cities. The company also intends to improve the technology in order to promote the transparency of information exchange and the convenience and security of transactions.
Founded in 2019 by Harvard Business School graduate Shiv Parekh, hBits operates an online platform where it offers fractional ownership to investors in grade A commercial properties by using machine learning to collect historical sale and rental data, which is then made available to the public on its platform. The website claims to have 40,000+ registered investors and 1.5 lakh square feet of management space across eight assets managed by the business in Mumbai.
“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. With RBI (Reserve Bank of India) raising rates and other forms of investments losing sheen, fractional ownership will result in further impetus to investing in real estate assets”, said Shiv Parekh.
hBits collects previous transaction and rental data using machine learning, which is also available on its platform for anyone to view. The company will develop its technology even more in order to boost the transparency of information exchange and the convenience and security of transactions. It intends to use blockchain technology to eliminate the need for paper in all transactions. All contracts are digitally signed, and investors may purchase and sell transactions directly through the platform, eliminating the need for middlemen.
When asked about the investment, Chris Kolenaty, Founder of Snow Leopard Ventures, said “We are excited to partner with Shiv and the team at hBits. The company’s razor-sharp focus over the past few years has led to an impressive track record, sound economics, and the necessary technology infrastructure to accelerate the building momentum. We see a tremendous opportunity ahead and look forward to seeing hBits delight many more customers.”
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