RealX, a Pune-based fintech startup that offers fractional ownership in real estate projects, has closed its first transaction of a commercial property at Karad near Satara.
The first transaction saw around 20 investors pitching in to purchase a 150 square feet shop worth Rs.10 lakh.
Interestingly, the ecommerce platform allows sellers and agents to post property and registered buyers can commit their co-ownership share in the respective properties.
Simply put, a property that is worth say ₹1 crore can be collectively bought by 10 investors who can each commit ₹ 10 lakh.
A transaction is considered successful when it generates the total commitments required for the full sale Thereafter the transaction is executed in favour of the co-owners whose collective interest is represented by a principal custodian.
"We, at RealX wanted to create an option for people to participate in high value, high yield property transactions at lower ticket sizes and without the usual running around," said Yashwinder Singh, co-foundeR, RealX.
After the sale deed is registered, co-owners are issued equitable fractional ownership digital certificates called FRAX. This part of the transaction is managed by REGKO, another fintech startup that provides asset registry solutions based on distributed ledger technology, commonly known as Blockchain.
"This technology has inherent benefits of immutability (tamper proof) and verifiability of records," said Abhishek Gupta, chief executive officer, REGKO.
"I’m very happy that our hard work of almost one and half years, has finally seen success... We will now open up our platform for various players in real estate industry to register with us and begin commercial transactions in two to three months.” Manish Kumar, Group CEO of iVentures and the brain behind both the companies
