hBits: 10 Key Things You Must Know

Overview

Founded in 2018, hBits is a pioneering fractional ownership platform revolutionizing access to commercial real estate investments in India. At the forefront of the proptech industry, hBits combines advanced technology with real estate expertise to democratize real estate for everyday investors, allowing them to partake in lucrative commercial property ventures. By reducing traditional entry barriers, hBits empowers individuals with entry-level investment potentials, promising stability and high returns. As we delve into its innovative model, here are ten remarkable facets of hBits that illustrate its significance in the real estate sector.

1. Origin and Purpose

hBits was co-founded by Shiv Parekh and Samir Bhandari with the aim to democratize the commercial real estate market, making it accessible to retail investors. Traditionally dominated by High Net-Worth Individuals (HNIs) and large institutional entities, hBits lowers the entry investment threshold significantly. It provides opportunities to invest in Grade-A commercial properties, historically available only to elite investors, with a minimum ticket size of ₹30 lakh.

2. Fractional Ownership Explained

At the heart of hBits’ success is its fractional ownership model, allowing multiple investors to own a fraction of high-value properties. This concept reduces the cost entry barrier, enabling a broader demographic to benefit from real estate investment. Investors earn not only through appreciation in property value but also from rental incomes, offering a blend of immediate cash flow and long-term growth.

3. Technological Edge

hBits leverages cutting-edge AI technology to analyze market trends and evaluate property performance. This data-driven approach allows the platform to identify premium investment opportunities, optimizing returns and minimizing risks for investors. The technology underpins hBits’ commitment to providing a transparent, efficient, and informed investment process.

4. Market Impact and Financial Growth

Since its inception, hBits has evaluated commercial real estate assets worth INR 3,000 crore monthly and manages assets under management (AUM) of approximately ₹500 crore. The company’s growth trajectory is impressive, with plans to expand AUM to ₹1,500 crore by the next financial year, reflecting its robust strategy and market relevance.

5. Recent Funding and Expansion Plans

In January 2025, hBits secured Rs 40 crore in a Series A funding round from Capricon Realty, an entity of the Thackersey Group. The funding is earmarked to enhance its AI-driven technology platform and expand geographically, demonstrating investor confidence and the potential for significant scale-up in the real estate market.

6. Introduction of Small and Medium REITs

hBits is set to capitalize on India's newly introduced Small and Medium Real Estate Investment Trust (SM REIT) regulations by SEBI. These regulations open avenues for fractional ownership to be traded similarly to mutual funds, increasing market liquidity and enhancing investor trust. This regulatory development is poised to democratize access to Grade-A commercial real estate substantially.

7. Launch of ₹63-Crore Asset in Pune

Recently, hBits launched a significant ₹63-crore commercial office project in Pune. This asset offers an entry yield of 8.75% and an expected Internal Rate of Return (IRR) of 14.53%. Such investments highlight hBits' strategic moves in key commercial hubs to attract investors with high-yield opportunities.

8. Geographic Presence and Future Prospects

Headquartered in Mumbai, with a presence in Pune and Bengaluru, hBits plans to widen its reach to key cities like Delhi, Hyderabad, and Chennai. These expansions are targeted to gain strategic footholds in vibrant commercial markets, underscoring their ambition to become a dominant player in the fractionally owned real estate sector in India.

9. Challenges and Opportunities

Despite its achievements, hBits encounters challenges typical in fractional ownership, like liquidity constraints and investor education. The company's focus on robust technology and institutional partnerships aims to address these issues. Additionally, SEBI regulations bring both new opportunities and compliance challenges that need strategic maneuvering.

10. Investor Demographics

The platform serves over 130,000 registered investors, with a diverse profile spanning domestic and NRI communities. The typical hBits investor is a professional aged 35-75, reflecting a trust in the platform's ability to offer stable returns and growth potential in commercial real estate assets, bridging the gap between traditional and modern investment avenues.

Conclusion

hBits stands at the intersection of technology and real estate, presenting a transformative approach to commercial real estate investment. By breaking down the financial barriers associated with property ownership, hBits not only offers a path to diversified portfolios but also aligns with future trends through the integration of SM REITs. As the company continues to grow and adapt, it holds the potential to redefine real estate investment accessibility in India, laying a foundation for more equitable economic growth in the sector.