Equity Address: Transforming Real Estate with Fractional Ownership for Second Homes

The Delhi-based fintech platform, Equity Address, is revolutionizing the real estate market by offering fractional ownership options for premium vacation homes, making second-home ownership accessible and lucrative. The founders, Mohit Gupta, Abhishek Madhukar, Puneet Gupta, and Aashish Raj, were motivated by their dissatisfaction with traditional investments yielding minimal returns during the pandemic. Recognizing the untapped potential in the holiday home market, they launched Equity Address in 2021, combining technology and finance to provide investors with unique benefits and returns.

Innovative Fractional Ownership Model

Equity Address introduces a novel approach to fractional property ownership, allowing a group of investors to co-own high-end properties, ranging from 2 BHK apartments to 4 BHK private pool villas, with fractional ownership options starting from Rs 17 lakh. The platform aims to democratize and disrupt the real estate market, expanding fractional ownership from the current 1-2% to an anticipated 5%.

The startup's unique features include true ownership, future gains, flexible scheduling for accommodation, and shared expenses. Equity Address streamlines the ownership process, handling paperwork, asset valuation, clear title reports, and more, reducing transaction time to 90-120 days. The platform ensures privacy for co-owners through a detailed dashboard for transaction management and updates, facilitating secure communication and portfolio management.

The Venya: A Premium Hospitality Platform

In February 2022, Equity Address launched The Venya, a platform curating premium holiday properties such as luxury villas, boutique properties, and luxury apartments for short-term rentals of around 35 days. This initiative aims to make vacation home ownership and luxury assets more accessible globally. With over 500 listings, The Venya provides homeowners with an opportunity to generate income through rentals while addressing concerns about property management and guest services.

Equity Address enhances the investor experience by offering an exclusive private travel app, Venya-X, providing around 35 days of rent-free holidays per year. The platform utilizes advanced technologies such as AI, machine learning (ML), VR, and IoT to assist investors in discovering homes, estimating rentals, and predicting investment hotspots.

Challenges and Business Model

Equity Address acknowledges challenges in navigating varied land ownership rights, legal and regulatory complexities, and the unorganized nature of the second home market. However, the platform charges a 5% platform fee from investors on fractional ownership purchases and 3% on resale after a lock-in period. Additionally, it earns management revenue, amounting to 20% of the rental generation.

Impressive Revenue Growth and Future Plans

Bootstrapped with an initial investment of $100K, Equity Address has generated $200K in revenue so far. The startup aims to increase revenue ten-fold in the next year. Competing with industry players, Equity Address distinguishes itself through Venya's rental forecast feature, providing data-driven insights.

Looking ahead, Equity Address plans to sell shares in 20 villas and 15 apartments worth Rs 120 crore in FY 23-24, targeting 200 retail investors. Seeking $2.5 million in equity and $10 million in debt, the company plans to expand within India and explore locations like Alibaug, Lonavala, and Goa. Over the next two years, global expansion into MENA, SEA, and Europe is on the horizon, accompanied by the introduction of a Luxury Residence Fund of Rs 500 crore in 2023-24. This fund will offer global co-ownership of luxury holiday homes, allowing Indian investors to participate in international property investments.

Conclusion

Equity Address emerges as a trailblazer in the real estate sector, redefining second-home ownership through fractional ownership and innovative solutions. With a commitment to making luxury assets accessible and a strategic vision for global expansion, Equity Address is poised to shape the future of vacation home investment.