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BHIVE’s fintech investment platform for HNI hits $1M in monthly revenue; opens a new round of financing

India’s average net worth is booming and according to the latest report from Credit Suisse, the majority of India’s wealth is held by the 5% of HNIs (High Networth Individuals) who hold around 62% of the assets from India. But among the 5%, only 0.1% is well served. The rest have dabbled in fixed deposits (FD), equity investments, mutual funds, residential real estate, etc., but they actually have an appetite to invest beyond these traditional methods. . The challenge lies in the lack of accessibility to institutional quality investment opportunities like commercial real estate (CRE).

As Angel List and LetsVenture strike a similar syndication deal that allows HNIs to invest in startups and alternatives, Inasmuch asBHIVEInasmuch as is a similar platform, where instead of startups, you can invest in alternative assets like commercial real estate (CRE), revenue-based financing (RBF), and international real estate.

Today, in addition to investing through BHIVE’s FinTech platform in opportunities, retail investors can now invest directly in the BHIVE company as angel investors. BHIVE oversubscribed its offering on the LetsVenture platform by around 105% in one week and the reviews are a testament to the love for the product and the CRE market in general.

Create a pool of wealth for HNI

In the Indian market, bank deposits have a cumulative value of over $2 trillion. Currently, the rates offered by fixed deposits correspond roughly to the annual inflation rate. Rental yields from investments in residential apartments have also fallen to around 2.4% per year, which is even lower than time deposits. Many HNIs consider investing in other asset classes such as CREs that offer better monthly income and long-term appreciation.

“Imagine, even if we are able to capture 1% of that market share, we are looking at a massive number, like $20 billion in assets, under our management over the next few years,” says Shesh Rao Paplikar, Founder by BHIVE. .

The need of the hour is a competitive and comprehensive platform that allows HNIs to invest in international real estate, CREs, schools, hospitals, etc. And that’s where BHIVE’s fintech investment platform, bhive.fund, comes in.

BHIVE is now in an advanced stage of closing its pre-Series A round. They have seen phenomenal response on the LetsVenture platform and are closing the round with some well-known micro-VCs and angel investors.

“In the third consecutive month of starting full fledged sales, we reached Rs 7.76 crores in sales in a single calendar month. This was also possible as we were able to bring in almost Rs 200 crores of inventory on the platform for HNI to invest in. We realized it was important for us to immediately raise $1-2 million in the business to ensure continued growth momentum. This money will be deployed in sales, marketing and technology before launching the long closing effort of a larger Series A funding round. We are delighted with the response we have had so far on our funding round. big announcements coming soon,” he says.

Sunitha Ramaswamy, President of Early Stage, LetsVenture, says, “BHIVE was an early pioneer in the coworking space and has over the years demonstrated a forward-thinking attitude. They launched the BHIVE fund for HNIs to invest in CRE and other alternative asset classes, which offers much better returns compared to traditional investment options. This is indeed a great investment opportunity since a platform like BHIVE Fund helps individuals to also become co-owners of the property they are investing in. With the team now looking to expand their comprehensive services into the real estate industry, we at LetsVenture, look forward to working with the team.

By the end of FY21-22, BHIVE expects to reach an AUM (assets under management) of Rs 200 crore and by the end of next FY, to reach the Rs 1,000 crore mark.

Find the best CRE offers

While BHIVE offers Fractional Real Estate (FRE) and Revenue Based Financing (RBF) in the CRE space, the potential for CRE is extremely high with the highest being in Bengaluru worth over Rs 20 000 crore.

While globally the space has already picked up the pace, HNI here in India is lacking in good business. This gives BHIVE the opportunity to fill the void by providing them with opportunities to invest in deals they previously missed.

“I tell people that they originally came to invest in real estate, but accidentally ended up being a landlord. Who wants to get a call from their tenant in the middle of the night to sort out housing issues “Home? Like Blackstone, we want to bring our clients offerings that give them high returns. Our goal is to be like Blackstone for retail investors or HNIs,” says Shesh.

He adds: “Like real investors, they have to analyze the opportunities and decide in which to invest and in what type of portfolio they want to build. We have a huge team that understands the nuances of the real estate market and takes the trouble to browse many properties to find the best deals. We want to make sure that people spend more time analyzing the available opportunities than managing the asset, which would be the case if they were investing in the asset themselves,” says Shesh.

The process is simple. BHIVE acts as a broker and identifies and researches the transaction, structures an investable transaction, syndicates the investments of the transaction and also manages the assets.

A niche offer led by experts

While many companies offer RBF and FRE in the CRE space, no other platform offers both except BHIVE. “We are targeting HNIs who want these two products. We are taking a global perspective but targeting the Indian audience,” Shesh explains.

What sets BHIVE apart is its ability to not only close the bargains, but also manage assets through its BHIVE workspace when needed. With over 130 investors on their platform, this is a digital-driven company led by an exceptional team of founders who bring a wealth of real estate, technology and investment knowledge to the table.

“At the end of the day, what we’re building here comes down to the quality of the team in our arsenal. The team’s comprehensive set of offerings and credentials make the company less imitable, thus erecting barriers to market entry. While many try to do FRE, building a wealth building platform like www.bhive.fund is extremely difficult. Hardly anyone has the kind of experience and skills that the founders have here when it comes to CRE, negotiation and leasing,” says Shesh.

He further explains, “BHIVE’s finance team is in a different league with the kind of talent we’ve been able to onboard. Our app which has already been released is already ahead of most of what others have tried to do. Additionally, globally, we are one of the few with the ability to build something that goes far beyond being just a simple FRE SEO platform and being a true wealth building platform with multiple types of offerings, the ability to manage assets and thus manage risk for investors.

Before returning to India in 2014, Shesh worked on Wall Street. He has a solid experience in technology in the financial field. Since 2014, he has been an integral part of Bangalore’s startup ecosystem and has also worked closely in Bangalore’s commercial real estate world over the years. Shesh and co-founder Monnappa were both classmates at the National Institute of Technology, Karnataka (NITK), where they both studied computer engineering.

Sandeep Gupta, led MB Invest at Magicbricks and also founded a blockchain tech startup, before joining BHIVE. During his corporate career which spans two decades, Sandeep has worked with Britannia Industries, Bombay Burmah, New Chennai Township, Cinepolis and GMR. He holds a certificate in investment performance measurement. Sandeep is an IIM Ahmedabad (IIMA) alumnus and CFA charter holder.

An alumnus of NITK and IIMA, Monnappa Bayavanda, before joining BHIVE, was part of the founding team of Amazon India and before that he was a solution architect in i2 technologies (later JDA software and Blue Yonder).

Future prospects through the technological prism

BHIVE is on a high growth trajectory and is transforming the real estate world by looking beyond the usual ways of investing. Going forward, they plan to further diversify into FREs and the wealth management category, and enter the international CRE market.

To manage the massive influx of investors into the CRE, technology is the only way. The bhive.fund app is available on the Google Play Store, where highly lucrative offers are made available to avid general investors. There are videos for each asset class, everyone receives a booklet, they can access investment notes and wealth analysis reports. The application will be available on the Apple App Store by the end of January 2022.

“Indians are the second biggest savers after China. We don’t have a wealth mindset and don’t put our money into opportunities where it can turn into wealth. We are saving money instead and spend it later. At BHIVE, we want to change that narrative,” Shesh says.

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