hBits

hBits is a proptech platform that allows individual investors to co-own premium, pre-leased commercial real estate in India through fractional ownership. By leveraging a fully digital, SEBI-regulated SM REIT structure, hBits offers accessible, transparent and liquid investment opportunities in high-quality assets like offices and IT parks.

Core Products and Services

• Fractional Ownership Platform: Enables investors to acquire shares in pre-leased, Grade-A commercial properties (offices, warehouses, IT parks) with a minimum investment as low as ₹10–30 lakh.

• SM REIT Structure: SEBI-regulated investment vehicle offering enhanced transparency, compliance and liquidity for fractional investors.

• AI-Driven Analytics: Advanced technology for property selection, market trend analysis and performance evaluation, supporting informed investment decisions.

• Turnkey Asset Management: Professional management of properties, including rent collection, tenant management and maintenance, ensuring hassle-free ownership.

• Digital Onboarding and Transactions: End-to-end online process for investment, documentation and portfolio tracking, making real estate investment accessible nationwide.

Business Model & Revenue Streams

• Revenue Mix: As of 2024, over 90% of revenue is derived from transaction and management fees on fractional ownership deals, with the remainder from advisory and platform services.

• Customer Segmentation: The platform serves a predominantly B2C investor base—about 70% domestic and 25% NRI investors, typically professionals aged 35–75 from banking, technology, and business sectors. hBits also partners with wealth advisors and channel partners for broader reach.

• Geographic Focus: While the core market is India’s top 10 cities, the platform is expanding its footprint to include NRI investors in Singapore, Dubai and London.

Top Clients & Partnerships

• Key Tenants: hBits’ portfolio includes properties leased to blue-chip tenants such as Teleperformance (a €10B+ French-listed tech MNC), ICICI Bank, IIFL, Ingenico Group and Viaante Business Solutions—ensuring stable rental yields and low vacancy risk.

• Strategic Partners: The company has forged alliances with Capricon Realty (Thackersey Group), Moneycontrol (for distribution and investor education) and over 1,000 channel partners including wealth managers and real estate brokers.

• Client Concentration & Diversification: No single investor or tenant dominates the portfolio, mitigating concentration risk. The company’s focus on acquiring assets in diverse commercial hubs and expanding into new geographies further enhances diversification.

Future Outlook & Strategic Priorities

• Growth Drivers: hBits is aggressively scaling its AUM, targeting ₹2,000 crore by March 2026 and ₹10,000 crore within five years. The upcoming SM REIT IPO and migration of existing assets into the REIT structure are expected to boost liquidity and investor confidence. Continued investment in AI-driven analytics and digital infrastructure will support product innovation and market expansion (reflecting recent regulatory tailwinds).

• Risks & Headwinds: Key challenges include evolving SEBI regulations, macroeconomic volatility affecting commercial real estate demand and intensifying competition from other proptech and REIT platforms.

• Strategic Targets: Management aims to achieve sustained profitability within 12–18 months, maintain annual profits of ₹25–50 crore, and prepare for a public listing once AUM surpasses ₹5,000–7,000 crore. Capital allocation is focused on asset acquisition, technology upgrades and expanding the channel partner network to drive scale and resilience.