Mumbai-based proptech startup hBits raises Rs 40 crore in funding

Mumbai-based proptech startup hBits has raised Rs 40 crore in a Series A funding round from Capricon Realty Private Limited, an entity of the Thackersey Group.

The latest infusion follows an earlier round of $3.32 million from Shree Naman Group and others. 

Purpose of fundraising

hBits, co-founded by Shiv Parekh and Samir Bhandari, aims to use the new funds to expand its AI-driven technology platform, broaden its geographical reach, and bring curated commercial real estate investments to a wider audience.

Founded in 2018, hBits enables investors to put in as little as Rs 10 lakh in Grade-A commercial properties, offering rental yields of up to 10% and projected Internal Rates of Return (IRR) of up to 18%.

This approach appeals to both first-time and experienced investors seeking a stable portfolio option with potential for significant growth.

Leveraging AI to analyze market trends

By leveraging AI to analyze market trends and evaluate property performance, hBits intends to reduce risks and optimize returns for its users.

The startup also plans to capitalize on the newly introduced Small and Medium Real Estate Investment Trust (SM REIT) framework by the Securities and Exchange Board of India (SEBI). 

SM REITs function similarly to mutual funds, allowing everyday investors to gain exposure to high-quality commercial real estate in a more transparent and regulated manner.

Aiming to triple AUM

hBits aims to triple its Assets Under Management from Rs 500 crore to Rs 1,500 crore by the end of the next financial year, driven largely by its SM REIT offerings.

"This is the mutual fund moment for the real estate industry. Just as mutual funds democratized stock market investing, SM REITs have the potential to make Grade-A commercial real estate accessible to everyone. We believe SM REITs could become as large as mutual funds in the next 10 years, offering investors a stable, high-performing, and transparent way to build wealth," said Shiv Parekh, Founder and CEO of hBits.

"Partnering with the Thackersey Group is a remarkable milestone for us. Their 150-year-old legacy of building enduring businesses and their strategic insights will be invaluable as we scale. Combining their expertise with our AI-driven platform and passionate team, we aim to create a sustainable, long-term enterprise that transforms real estate investment in India," he added.

"We always believed in forward-thinking investments that shape industries and communities. We are proud to partner with Shiv and the visionary team at hBits in their mission to redefine real estate investments in India. The SM REIT framework has the potential to democratize access to Grade-A commercial real estate for investors across the country. With our legacy of over 150 years, we understand the importance of building enduring businesses, and we’re excited to support hBits in creating a lasting impact in the real estate sector," added Raoul Thackersey of the Thackersey Group.