The Bengaluru-based tech-enabled commercial realty investment firm, Strata has received an offering of $1.5 million in a seed funding round. SAIF Partners and Mayfield India led the funding round of a realty investment startup. The startup plans to form a novel asset class by producing investment opportunities in premium commercial properties the aspiring bourgeoisie Indians who till date could only infuse money in low-priced residential realty estates.
Other investment companies that have participated in Strata’s funding round, include realty data analytics platform, PropStack and three other renowned angel investors, who are seasoned in the commercial real estate sphere, according to the company’s official statement.
“The alternate real estate asset class has been the playground for largely institutional investors. With Strata, individual investors can now access real estate investing without needing to invest large sums of money. We are excited to partner with Strata which is creating a new asset class for individual investors," Subeer Monga, Principal at Mayfield India, said.
“Strata has been able to create a simple, low-cost way for anyone to access real estate’s historically consistent and exceptional returns. Besides, the team is passionate about changing the real estate sector in the country. The combination of Propstack’s data & analytics with Strata’s unique investment platform has created a game changing proposition. Our objectives are completely aligned and we’re confident of working together to enable efficient real estate investments,” Raja Seetharaman, Co-Founder at Propstack, said.
Strata manages a tech-enabled realty investment platform that permits investors to buy and sell amounts of pre-leased, Grade-A commercial buildings like office spaces, warehouses, etc. With an online investment process along with concentration on data-led infusing, the company is offering transparency, liquidity and accessibility to the Indian consumers for realty investments.
Its platform is created into a three-pointed approach that aid in reducing the high capital requirement for investors, bringing prowess and adding liquidity to another inflexible marketplace
“As a brand, we are focused on bringing in transparency and a data-driven approach to investments in real estate. Aiming to touch 250 Crores of AUM in this calendar year, we are creating India’s largest tech-enabled real-estate investment platform with our fractional investment model,” Sudarshan Lodha, Co-Founder of Strata, said.
“Partnering with SAIF Partners and Mayfield adds a lot of credibility to our business model and we are happy to get an opportunity to leverage from their experience in disrupting the proptech business in India. Additionally, we are also excited about our strategic investment from PropStack as it will help us get exclusive CRE intelligence and analytics, which in turn will allow us an edge over other platforms in the ecosystem,” Lodha added.
“We are thrilled to partner with Strata which is delivering outstanding innovation and results in the proptech space in the country. We have a strong belief in the founding team’s vision of creating new investment opportunities for the middle-class in the country. We are excited for this journey ahead with Strata,” Srinivas Bhaskar, Vice President at SAIF Partners, said on Strata’s fundraising round.”
The company claims that after six months’ of its inception, it has infused capital in 3 premium assets and brought many professionals on board, in turn, increasing headcount to over 20.
The Bengaluru-based startup asserts to have been supported by WeWork Labs. It also claims to get into an exclusive association with PropStack, which is one of the leading CRE data and analytics platforms in India.
The startup is presently carrying its operations in Bengaluru as well as Mumbai. It is deciding to augment its team to more than 45 members in the current year, especially concentrating on recruiting professionals for tech and investor relations jobs. It also decides to employ the fresh capital to extend its presence to other metropolitan cities and fortify its present tech stack.
The company was initiated in May 2019. It realised the fact the realty investors in the country are making poor investment decisions owing to lack of related experience, unavailability of data sets and inadequate capital, which is required to plough money into key buildings.
According to IBEF, “Real estate sector in India is expected to reach $1 trillion by 2030. By 2025, it will contribute 13 per cent of the country’s GDP. Real Estate stock in India is expected to reach 3.7 million sq. feet in 2019, with addition of 200 million sq. feet during the year. Emergence of nuclear families, rapid urbanisation and rising household income are likely to remain the key drivers for growth in all spheres of real estate, including residential, commercial and retail. Rapid urbanisation in the country is pushing the growth of real estate. More than 70 per cent of India’s GDP will be contributed by the urban areas by 2020. Indian real estate increased by 19.5 per cent CAGR from 2017 to 2028.”
In terms of investment, the realty sector has enticed nearly INR43,780 crore ($ 6.26 billion) of investments in 2019. The retail segment in Indian realty attracted private equity investments of around $1 billion in 2019, according to the above-cited report.