FabInvest crosses Rs 200 Cr in AUM: Is fractional real estate India’s next big wealth play?

by Incbusiness Team

FabInvest, a Bangalore-based fractional real estate investment platform, has crossed Rs. 200 crore in Assets Under Management (AUM), marking a significant operational milestone in less than two years since its founding.

The achievement places FabInvest among the faster-growing platforms in India's emerging fractional real estate segment, a market expanding at 21% CAGR, and one that is steadily pulling serious retail investors away from traditional asset classes like equity and fixed deposits.

Built on proof, not promises

The growth did not come easily or quickly. Co-founders Aravind Mutthi and Dr. Ravi Teja spent the first seven months doing the hard work of earning trust. Their first two projects were a grind. It was only after their third project, once early investors began seeing actual returns, that the flywheel started turning.

"Investor confidence isn't built through marketing; it's built through consistent execution," Aravind says. "As we scale, maintaining that discipline is non-negotiable."

That discipline is baked into how FabInvest operates. The platform evaluates over 20 builder proposals every month and rejects 80% outright. Projects that are unclear on fundamentals, like a clear title, location quality, builder track record, and commercial viability, never make it to investors. The ones that do go through a 15-point due diligence process. Legal verification is handled by Tier I law firms in Bangalore and Hyderabad, and only RERA and Metro Development Authority-approved projects are listed.

FabInvest lists only one project every 30 to 45 days to maintain quality.

The numbers behind the milestone

Today, FabInvest manages a portfolio of 10 completed projectsacross Hyderabad and Bangalore, with a registered investor community of 25,000 and over 1,000 active investors. The minimum investment threshold sits at Rs 30 lakh, a number the founders describe as a deliberate sweet spot: accessible enough for serious retail investors, meaningful enough to attract a mature investor base.

The repeat investment numbers tell the real story. Around 25% of every new project is funded by existing investors, and once an investor receives an exit, more than 80% choose to reinvest on the platform.

The investor profile skewing toward FabInvest is consistent: professionals aged 30 to 45, mid-to-senior level employees at MNCs, business owners, entrepreneurs, and doctors who believe in real estate as an asset class but want lower ticket sizes and the ability to diversify across projects.

Almost every project since their third has been oversubscribed, often by 15-20%, with the platform frequently unable to accommodate all interested investors due to inventory constraints.

Making real estate accessible

Fractional real estate, at its simplest, means owning a share of a property rather than the whole thing. In a market where Tier I city real estate has become prohibitively expensive for most buyers, fractional ownership lets investors participate in property appreciation starting from Rs 10 lakh, though FabInvest's own minimum is Rs 30 lakh for the quality of projects it targets.

The co-founders say a combination of deep builder relationships and deal access separates FabInvest from others in the space. Their network in the Hyderabad and Bangalore markets gives them access to deals that are exclusive to HNI's and discounts of 30-40% on market price. Aravind and Ravi bring over 20 years of combined real estate experience, and that on-the-ground market knowledge feeds directly into project selection.

Investor concerns, particularly around indirect ownership through an SPV structure and the complexity of real estate documentation, are addressed through detailed webinars, consultation calls, and a full due diligence checklist shared with every investor ahead of a decision.

What comes next

FabInvest's next target is Rs 500 crore in AUM. The levers to get there are already in motion: a strong builder pipeline, its largest commercial project deals to date in Hyderabad and Bangalore, and geographic expansion into Mumbai and Chennai this year. The platform is also evaluating the hospitality segment, where it says inbound investor interest has been significant.

"Rs 200 crore in two years is a small testament to where this market is headed," Aravind says. "Fractional real estate in India is growing at 21% CAGR, and we've barely scratched the surface. Our goal is to be the largest alternative investment platform in India. This milestone tells us we're on the right path."

Original Article
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