Startup Deep Dive : Property Share — how it became India’s first SEBI-licensed SM REIT sponsor after nine unregulated years

Property Share spent nine years running a business that had no formal legal category under Indian securities law. Then, on 5 August 2024, it became the first fractional-ownership platform to be handed a licence by the Securities and Exchange Board of India (SEBI) to operate as a small and medium real estate investment trust, or SM REIT — turning a grey-area retail product into a regulated one almost overnight.

Twenty-one months on, the Bengaluru company runs three listed SM REIT schemes worth a combined ₹1,070 crore ($111 million at $1 ≈ ₹96.0 as of 18 September 2026, Trading Economics) of Bengaluru, Mumbai and Ahmedabad office space, and has filed papers for a fourth, in Noida. Yet the company that pioneered India’s fractional real-estate market posted a net loss of ₹23.4 crore in FY25 even as its own revenue grew 52.1% — being first to a new regulatory category has not, so far, meant being profitable.

Quick facts

What they do

Property Share lets individual investors buy into large, rent-yielding commercial office buildings that would otherwise be out of reach — the kind of Grade A+ towers leased to multinational tenants that, in India, have traditionally been the preserve of institutional funds, pension money and ultra-high-net-worth family offices. It sources a completed, fully-let building, puts it into a special purpose vehicle, and sells that vehicle’s economic interest in slices to investors, who then receive a share of the rent as regular payouts. Since December 2024, that slicing happens through SEBI-regulated SM REIT schemes with a ₹10 lakh minimum ticket; before that, it happened through direct fractional-ownership deals and through PropShare Capital, its associated AIF and portfolio-management business, with entry tickets running into crores for institutional and family-office money.

The origin

Kunal Moktan and Hashim Khan met at IIM Ahmedabad in the mid-2000s. Moktan went on to Blackstone, where he spent years underwriting close to a billion dollars of Indian commercial real estate for pension funds and endowments; Khan ran technology for Alshaya, a large Middle Eastern retail conglomerate. What they noticed, working on opposite sides of that world, was a gap: institutions had an easy, well-worn route into prime, rent-yielding office space, and the ordinary Indian investor with a few lakh rupees to spare had none. Commercial property in India paid steadier, better-documented yields than most residential real estate, but you needed tens of crores and an institutional network to get a seat at the table. Property Share’s founding bet, launched from a one-bedroom office in Bengaluru’s Koramangala in 2015, was that technology and a securities-style structure could cut that ticket size down to something an individual investor could actually write a cheque for, without diluting the underlying asset quality (Forbes India, 2024).

The struggle years

The first eighteen months were, by the founders’ own account, a grind. “We struggled to build a user base. Our marketing budget was very limited and it was tough to get people to believe in us when our office looked like a startup from the 90s,” Khan has said of the early days — and there were stretches when the founders put in their own capital to see a property funding round through to completion (Forbes India, 2024). The break came almost by accident: a write-up in The Economic Times gave the model unexpected visibility and pushed the platform past its first 1,000 registered users, a threshold it had struggled for months to reach (Forbes India, 2024).

The deeper, unsoftened problem was regulatory, not commercial. Fractional-ownership platforms like Property Share operated for years in a category Indian securities law had not defined — the company has said it self-regulated by voluntarily holding SEBI’s Investment Adviser and Portfolio Manager licences even though no law compelled a fractional-ownership platform to hold either. That improvisation nearly became a liability. On 12 May 2023, SEBI issued a consultation paper proposing that all such platforms be brought under a new “Micro, Small and Medium REITs” framework — and stated plainly that any platform that failed to register or meet SEBI’s eligibility criteria “will have to wind up their operations” (Medianama, May 2023; Mondaq, 2023). For a business that had spent eight years building trust with retail investors on an unregulated product, an explicit shutdown clause hanging over the entire industry was as close to an existential threat as it gets. SEBI’s board approved the new framework on 25 November 2023, and it was notified as the SM REIT regulations in March 2024 (Medianama; TeamLease RegTech).

Even the corporate structure had to be pulled apart once the rules landed. PropShare Capital Advisors Private Limited — the SEBI-registered AIF and portfolio-management arm through which Property Share had run its pre-REIT institutional funds, including the fully-deployed PREF I and the ₹500 crore-target PREF II — was renamed AltInvest Capital Advisors Private Limited by a company resolution on 13 August 2024, a change registered with the Registrar of Companies with effect from 17 September 2024, within weeks of Property Share’s own SM REIT licence coming through. The advisory business now trades separately as Alt Capital, still backed by the same investor group of WestBridge Capital, Lightspeed Venture Partners, Beenext and Pravega Ventures, while the Property Share brand was kept for the newly regulated REIT sponsor business (company disclosure documents published at altcapital.ai).

The turning point

The single event that changed Property Share’s trajectory was SEBI’s decision, on 5 August 2024, to register Property Share Investment Trust as India’s first small and medium REIT, under registration number IN/SM-REIT/24-25/0001 — making Property Share the first fractional-ownership platform in the country to convert into a regulated REIT sponsor (Business Standard, August 2024; PSIT registration filings). Before that date, the company had spent nine years building roughly ₹1,500 crore of investor capital into fractional deals and AIF funds under a self-regulated model with no dedicated law behind it (Forbes India, 2024). After it, the shift was fast by real-estate standards: within four months, on 2 December 2024, PSIT listed PropShare Platina, a ₹353 crore IPO and India’s first SM REIT offering, on the BSE (Business Standard; Free Press Journal, December 2024). By May 2026, seventeen months later, the trust’s REIT assets under management had roughly tripled to ₹1,070 crore across three listed schemes, and a fourth was already in the pipeline (SME Street, May 2026).

The money behind it

• Seed/pre-Series A (around 2016): an undisclosed round backed by Pravega Ventures and Beenext, when the platform had barely a few thousand registered users (Tracxn; Forbes India).
• Series A (22 January 2019): $4 million led by Lightspeed Venture Partners — the first marquee-VC validation of the fractional-ownership model (Forbes India; Tracxn).
• Series B (June 2022): $47 million (about ₹347 crore), led by WestBridge Capital with Rs 330 crore of that round, alongside Pravega Ventures (₹10 crore) and smaller participation from Konark Trust and an MMPL trust; the round valued 10,832 compulsory-convertible preference shares at ₹320,643 apiece (Business Standard, June 2022; Entrackr, June 2022).
• Total raised: about $52 million across three rounds (Tracxn); the company has not disclosed a post-Series B valuation.
• Ownership: after the Series B allotment, WestBridge Capital held about 27.5%, founders Kunal Moktan and Hashim Khan retained roughly 48% on a diluted basis, and other existing shareholders held the remainder — founders kept majority control (Entrackr, June 2022).
• Beyond venture equity: Property Share also raised capital-market money at the scheme level — ₹353 crore for Platina (December 2024), ₹473 crore for Titania (July 2025), ₹244.65 crore for Celestia (April 2026), and a filed ₹484.68 crore for Lumina (August 2026) — none of which is company equity, but all of which is capital Property Share’s team sourced, structured and now manages (Business Standard; Free Press Journal; India TV News; Grihik).

How it makes money

• Pre-REIT era (through FY24): revenue came from managing fractional deals and PropShare Capital’s AIF/PMS funds for investors; company-level revenue was ₹22.2 crore in FY23, rising to ₹48.4 crore in FY24 (Inc42 Datalabs, based on regulatory filings).
• REIT-era investment-manager fees: on PropShare Platina, the investment manager waived all annual investment-management and property-management fees for FY25 and FY26, moving to a nominal 0.25% of scheme value in FY27 and 0.30% from FY28 onward (BusinessToday, September 2024).
• Second scheme, steeper ramp: on PropShare Titania, those same fees are waived through FY26 and step up to 0.5% from FY27 — roughly double Platina’s eventual rate (search-aggregated scheme offer-document terms).
• What flows to investors: rental income from 100%-let Grade A+ office assets is distributed to unit-holders after scheme expenses, at pre-tax yields the company has projected in the 8.2–9.3% range across its four schemes (ICICI Direct; Samco; scheme offer documents).
• The part people get wrong: a “projected distribution yield” published in an offer document is not a guaranteed return. PropShare Celestia’s units closed at a discount to their own issue price on debut day, a reminder that the REIT’s fee waivers and projected yields describe the income line, not the tradeable price of the units (Business Standard; ICICI Direct, April 2026).
• Result on the P&L: despite fee waivers on its two largest live schemes, the parent company’s own revenue still grew to ₹73.5 crore in FY25 — but so did expenses, leaving a net loss of ₹23.4 crore for the year (Inc42 Datalabs).

The numbers

Three consecutive fiscal years of company-level financials are available from regulatory-filing aggregation; a profit/loss figure for FY24 was not found in the sources checked and is left blank rather than estimated.

• Revenue growth: +118% in FY24 over FY23’s ₹22.2 crore base, then +52.1% in FY25 over FY24’s ₹48.4 crore base (Inc42 Datalabs).
• The FY23-to-FY25 swing from a ₹4.3 crore profit to a ₹23.4 crore loss lines up with the years the company was building out four SM REIT schemes and waiving fee income on its first two, ahead of the step-up fees due from FY27 (Inc42 Datalabs; scheme offer documents).

Where the money comes from

• PropShare Platina — 0.28 million sq ft, Bengaluru’s Outer Ring Road; fully let to a US-based technology company on a fresh nine-year lease; has distributed about ₹40.6 crore since its December 2024 listing at an average pre-tax yield of about 8.8% (SME Street, May 2026).
• PropShare Titania — 0.45 million sq ft, G Corp Tech Park, Thane (Mumbai region); 100% leased across 11 tenants including Aditya Birla Capital and Concentrix; has distributed about ₹28 crore since its August 2025 listing at an average pre-tax yield of about 9.0% (SME Street; Samco).
• PropShare Celestia — 2.07 lakh sq ft across seven floors of Venus Stratum in Ahmedabad; 100% occupied by a listed Swedish telecom multinational and ten other occupiers, including three Fortune Global 500 companies; projected pre-tax yields of 8.4% (FY27) rising to 8.9% (FY29) (Business Standard; India TV News, March–April 2026).
• PropShare Lumina (filed, not yet listed) — 437,025 sq ft across two towers of OESPL Business Centre in Noida, 100% leased to 19 tenants; a ₹484.68 crore draft filing with projected yields from 8.20% (FY27) to 9.30% (FY30) (Free Press Journal; Grihik, August 2026).
• Combined distributions: the three listed schemes had paid out roughly ₹68 crore to unit-holders in total by May 2026 (SME Street).
• The surprise: at the Platina IPO — India’s first SM REIT offering — institutional investors subscribed to just 0.13 times their quota, while the “other investors” category (largely individuals and family offices) subscribed 4.37 times theirs; demand for the country’s first regulated fractional-realty product came overwhelmingly from individuals, not the institutions the asset class was partly designed to attract (Business Standard, December 2024).

The risks

• Lease concentration and clustering: because each SM REIT scheme typically owns one building, its entire distribution depends on a small tenant list; Titania’s weighted average lease expiry is just 3.2 years, with lease expirations clustering in FY27–FY28, so a non-renewal or a renegotiated lower rent there would show up directly in unit-holder payouts (Samco, July 2025).
• Litigation at the asset level: the Titania special purpose vehicle carries roughly ₹71 crore of pending direct-tax and GST litigation; an adverse ruling would be a cash-flow or reputational hit specific to that scheme (Samco, July 2025).
• A thin, new secondary market: SM REITs as an asset class are barely two years old. PropShare Celestia listed on 24 April 2026 at a discount to its ₹10.50 lakh issue price on debut, showing that a projected distribution yield does not guarantee price stability once units start trading on a still-illiquid exchange segment (Business Standard; ICICI Direct, April 2026).
• Sponsor-level losses: the entity managing four REIT schemes is itself not profitable — Property Share posted a ₹23.4 crore net loss in FY25 even as its revenue grew 52.1% — a reminder that scheme-level yields to investors and the sponsor’s own financial health are two separate questions (Inc42 Datalabs).

The takeaway

The lesson generalises past real estate. A company that builds a category ahead of its regulation survives the wait only if it behaves as though the regulator already exists — audited books, disclosed conflicts, and risk factors written down long before any law demands them. Property Share ran its Investment Adviser and Portfolio Manager licences as a stand-in rulebook for the better part of a decade; when SEBI finally wrote the real one in 2024, the company had almost nothing left to restructure beyond splitting its older AIF business into a separate brand. Founders who wait for the rules to arrive before they start tend not to be the ones the rules end up written around.

Frequently asked questions

What does Property Share actually do?

It sources completed, fully-leased Grade A+ commercial office buildings, places each one in a special purpose vehicle, and lets individual investors buy a share of that vehicle’s rental income — first through direct fractional-ownership deals and AIF funds, and since December 2024 through SEBI-regulated SM REIT schemes with a ₹10 lakh minimum investment.

What is PropShare Capital, and is it still part of Property Share?

PropShare Capital Advisors Private Limited was the group’s SEBI-registered AIF and portfolio-management business, which ran funds including PREF I and PREF II. It was renamed AltInvest Capital Advisors Private Limited (Alt Capital) by a resolution on 13 August 2024, effective with the Registrar of Companies from 17 September 2024, and now operates under a separate brand, though it shares the same investor base as Property Share.

What is India’s first SM REIT, and when was it launched?

SEBI registered Property Share Investment Trust as India’s first small and medium REIT on 5 August 2024. Its first scheme, PropShare Platina, listed on the BSE on 2 December 2024 through a ₹353 crore IPO — the first SM REIT offering in the country.

Is Property Share profitable?

The parent company was not profitable in its most recent reported fiscal year: it posted a net loss of ₹23.4 crore in FY25 on revenue of ₹73.5 crore, according to Inc42 Datalabs’ reading of its regulatory filings. It did report a smaller profit of ₹4.3 crore in FY23.

Who are Property Share’s biggest investors and how much has it raised?

It has raised about $52 million in venture funding across three rounds, from Lightspeed Venture Partners, WestBridge Capital, Beenext and Pravega Ventures. WestBridge led the largest round, a $47 million Series B in June 2022, after which it held roughly 27.5% of the company while founders Kunal Moktan and Hashim Khan retained majority control.

Sources

Figures are as of September 2026. Currency converted at $1 ≈ ₹96.0 as of 18 September 2026 (Trading Economics).

• Business Standard, “Property Share becomes first FOP; gets Sebi license for small, medium REIT” — August 2024
• Medianama, “SEBI releases a consultation paper on fractional ownership platforms for real estate investment” — May 2023
• Mondaq / NovoJuris, “SEBI Seeks To Regulate Fractional Ownership Platforms” — 2023
• TeamLease RegTech, “SEBI issued a consultation paper on Regulatory Framework for Micro, Small & Medium REITs” — 2023
• Forbes India (Brand Connect), “From an idea to a multi-million-dollar industry: How Kunal Moktan and Hashim Khan changed India’s real estate investment landscape” — 2024
• Business Standard, “Property Share files offer document for Rs 353 crore IPO of its SM Reit” — November 2024
• Business Standard, “PropShare Platina REIT IPO ends with 1.19x subscription” — December 2024
• Free Press Journal, “India’s First SM REIT IPO: Property Share Investment Trust To Launch ₹353 Crore PropShare Platina Issue On December 2” — December 2024
• BusinessToday, “Property Share IPO: India’s first SM REIT scheme to raise Rs 353 crore; key things to know” — September 2024
• Business Standard, “Proptech startup PropShare raises $47 mn from WestBridge Capital, others” — June 2022
• Entrackr, “Decoding PropShare Series B round, captable and valuation” — June 2022
• YourStory, “PropShare raises $47M in Series B led by WestBridge Capital” — June 2022
• Tracxn, “PropertyShare — Company Profile, Team, Funding, Competitors & Financials” — 2026
• Inc42 Datalabs, “PropertyShare Financials — Revenue, P&L & Cash Flow” — 2026, based on FY23–FY25 regulatory filings
• SME Street, “Property Share Expands SM REIT Portfolio Across India” — May 2026
• Samco Knowledge Center, “Property Share Investment Trust REIT IPO — Check IPO Date, Lot Size, Price Details” (PropShare Titania) — July 2025
• Business Standard, “Property Share Rs 473-cr SM Reit IPO to open on July 21” — July 2025
• Business Standard, “PSIT files Rs 472 crore IPO for PropShare Titania, its second SM Reit” — May 2025
• India TV News, “PropShare Celestia’s Rs 244 crore IPO to open on April 10” — March 2026
• Business Standard, “SM Reit scheme PropShare Celestia’s ₹244 cr IPO to open April 10” — March 2026
• ICICI Direct, “PropShare Celestia SM REIT IPO wraps up with 1.33 times subscription” — April 2026
• Business Standard, “PropShare Celestia SM Reit lists at discount” — April 2026
• Free Press Journal, “Property Share Files Draft IPO Papers For ₹485-Crore Fourth SM REIT Scheme PropShare Lumina” — August 2026
• Grihik, “Property Share Files ₹485 Crore SM REIT IPO to Offer Retail Investors a Stake in Noida Office Towers” — August 2026
• RP Realty Plus / Outlook Business, “PropShare Capital Launches 2nd Fund PREF II To Raise Rs. 500 Cr.” — October 2023
• AltInvest Capital Advisors Private Limited, “Disclosure and Disclaimer” (company regulatory disclosure, name-change and RoC registration dates) — altcapital.ai
• CBInsights, “Property Share — Founded Year, People, Financials” — 2026
• PSIT / SEBI registration filings, registration number IN/SM-REIT/24-25/0001 — August 2024

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