Decoding PropShare Series B round, captable and valuation

Online real estate investment platform PropShare announced that it raised $47 million in a Series B funding round led by private equity player WestBridge Capital with participation from existing investors Pravega Ventures.

While the Bengaluru-based company did not provide further information on the deal, Fintrackr has decoded the round break-up, valuation and shareholding structure from its regulatory filings.

PropShare, operated by Property Share Online Platform Private Limited, has passed a special resolution to allot 10,832 Series B compulsory convertible preferred shares (CCPS) at an issue price of Rs 320,643 per share to raise Rs 347 crore or nearly 45 million, according to its regulatory filings with RoC. The company may receive the remaining money soon.

WestBridge Capital led the round with an investment of Rs 330 crore while Konark Trust, MMPL trust contributed with 6.38 crore and Rs 54 lakhs. Existing investor Pravega Ventures put in Rs 10 crore.

The fresh funds has come after a gap of almost three years for the company. In September 2019, PropShare (earlier name Property Share) had picked up $2 million in Series A round from Lightspeed, Beenext, Pravega Ventures, and a clutch of other investors.

As per Fintrackr’s estimate, PropShare has been valued at $165-170 million post allotment.

Following the investment, lead investor Westbridge will hold 27.49% stake in the firm. Founders of the company – Kunal Moktan and Hashim Qadeer Khan – have diluted their collective stake to 47.93% post allotment. The complete shareholding pattern can be seen below.

Six-year-old PropShare is a technology-driven real estate investment platform that enables investors to purchase commercial real estate assets. According to the company, it takes complete responsibility for sourcing, due diligence, property management and sale on behalf of users trying to make commercial real estate-related transactions simple and transparent.

The company also runs an investment advisory platform called PropShare Capital under PropShare Capital Advisors Pvt Ltd. It helps investors generate returns from high-yield securities that derive value from rent-yielding real estate in the offshoring hubs of India. 

While PropShare did not disclose its financials for FY22, its operating revenue for the year ending March 2021 shrank 32.7% to Rs 3.8 crore from Rs 5.65 crore in FY20 as per annual financial statements filed with RoC. The firm’s annual losses surged nearly 55% to Rs 7.6 crore in FY21 from Rs 4.9 crore during FY20.

Real estate or proptech startups are once again making headlines for fundraising after a long gap due to the coronavirus pandemic. According to Fintrackr data, more than 20 startups in this space have raised around $486 million since January 2021. NoBroker has emerged as one of the top funded companies in this space which turned unicorn in November last year following a $210 million Series E round.