Aiming An Aggregate Fundraising Of Rs 3k Cr Over Next 3 Years, Says 360 FRXNL CBO

Fractional ownership platform, FRXNL is on a fundraising mode. Ankush Ahuja, Co-founder and Chief Business Officer 360 FRXNL, shared his insights about the newly formed entity of 360 Realtors

Q. Tell us more about 360 FRXN.

360 FRXNL is the fractional business arm of 360 Realtors, India’s leading real estate advisory. Under the 360frxnl.com platform, multiple income-generating assets such as office spaces, warehouses, industrial real estate, hotels, second homes, etc. will be transacted. Likewise, it will also offer a wide range of other income-generating real estate assets comprising co-working spaces, shopping malls, high street retail business parks, SEZs, and farmhouse development projects.

With FRXNL, commercial real estate and other high-end properties won’t just be limited to HNIs and other institutional investors. Now a layman with a limited investment of INR 10-20 lacs can invest and own a fraction of an income-generating asset and reap higher ROIs.

Now you will see rather than someone investing multiple crores into an asset, multiple investors investing 10-50 lacs and owning a part of the property to make better returns with limited risk.

Q. What is your vision with 360 FRXNL, over the next 2-3 years?

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Recent times have seen the emergence of few online players in the fractional space, yet the limited manoeuvring from the bigger players has been witnessed, as many preferred to wait and watch. However, with SEBI also stepping up and showing interest to regulate the entire segment, the sun is set to rise on the fractional realty in India. This has also renewed interest of larger players in the space.

Backed by 360 Realtors, 360 FRXNL will be among the first few larger players to enter the space. We are surely going to play a pivotal role in organizing the overall segment and will be instrumental in market consolidation in the times to come.

We are focused on building a robust marketplace that will be mostly automated and driven by technology. This won’t just ensure speed of execution but also reinforce transparency, both for investors as well as channel partners.

Q. How will you gain a competitive edge in a market, that is already gaining momentum?

Since we have been formed by one of the biggest players in the industry, it is a great advantage. Being backed by a brand such as 360 Realtors comes with a lot of benefits. Not only will it help in rendering high credibility but also access to better resources. This will include a well-established business ecosystem, strong partnerships with 700+ developers, 1200+ trained employees, robust marketing & tech bandwidth, and an end-to-end operational support system. This has given us a kickstart and helped us thrive from the initial months.

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Meanwhile, we are putting in great effort to bring in the right project. The focus is more on quality rather than quantity. We are also investing heavily in technology and analytics, as they can be a growth enabler.

Q. How will you ensure the quality of your investment option(s), as not every commercial deal means profit?

Investing in good commercial and Retail real estate can give a profit of 12-20% (including rental yield and appreciation potential). However, as rightly said not every deal can be lucrative. To ensure great returns for our clients, we have a screening and assessment team in place. We have tie ups with big Research firms and before signing in on the project, we study the data and analytics of the location, as well as the feasibility of the project.

Every project that we put for investment is generally verified across three key parameters. Firstly, we check the location. Not having the right location can affect the occupancy, tenant quality, and deal tenures, thereby undermining profitability. Meanwhile, a good location with future demand will ensure better ROI.

Secondly, we do the due diligence to make sure all the paperwork, legal work, and approval are in place. Thirdly, our financial research team closely examines the cash flow, income statements, cost & taxes, lock-in periods, and other important data.

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By adopting a 3-step process we can largely mitigate the risk and give top-notch deals to our clients.

Q. What kind of revenue are you targeting in the next 12 months?

 We are planning a fundraising of close to INR 500 crores in the initial year. Over the course of the next 3 years, we are eyeing a total of INR 3000 crores.

Q. What is your manpower strategy?

A basic team has been put in place across departments such as Portfolio Management team, Brand & Marketing Department, Valuation and Appraisal department, Risk Management, Valuation and Appraisal department,  Operations and Finance Department.

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Meanwhile, now we are hiring aggressively for channel partners. In another 3-4 years, we are planning to empanel close to 50,000 channel partners. Besides real estate, we are also looking out to other sectors such as consulting, BFSI, Private Equity, Luxury Collectables, hospitality, etc.

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