This Hyderabad based prop tech Startup is Making Real Estate Ownership Possible for Everyone

Leaving behind a well-paying corporate job to chase a dream is a bold choice, but for Unnath Reddy, it was a necessary one. The 35-year-old former sales head turned entrepreneur founded Fracspace, a Hyderabad-based prop-tech startup, to make real estate investment affordable for middle-class families. Launched in 2022, Fracspace has quickly become a game-changer in the Indian real estate market with its innovative co-ownership model, allowing more people to fulfill their dream of property ownership. 

The Inspiration Behind Fracspace: 

While working as a sales head in a real estate company and earning ₹1 lakh per month, Unnath saw a recurring problem, many people were giving up on their property investment aspirations due to skyrocketing prices and location constraints. Recognizing the growing frustration among middle-class families unable to invest in high-value real estate, he sought a solution that would lower the barriers to entry. 

“I saw people giving up on real estate investments because of high prices and location problems. The dream of owning property was becoming impossible for many middle-class families,” Unnath explained during an exclusive conversation with Startup Pedia. This insight led him to the concept of co-ownership, where a group of people could pool their resources to invest in a property together, making it both affordable and reliable. 

Fracspace’s Business Model:  

Fracspace offers co-owned real estate investment opportunities, focusing on affordability and transparency. The platform allows multiple investors to jointly buy properties, sharing both the costs and the returns. This model not only makes property investment more accessible but also diversifies the investment risk, providing a safe and secure way for individuals to become property co-owners. 

Fracspace’s portfolio includes a diverse range of properties, from holiday homes in Goa and Munnar to international properties in places like Bali, Dubai, and the USA. The startup avoids holding properties for more than five years to prevent depreciation and maintain profitability. With a one-year lock-in period for investors, it allows them to exit at any time after the first year, providing greater flexibility and control.  

The Journey from Idea to Execution: 

Starting with just Rs. 60,000 in savings, Unnath began his entrepreneurial journey working from home. In his initial days, he struggled to find investors, as co-ownership was a new concept in the market. However, within three months, he secured his first investor with an investment of Rs. 10 lakh. This success gave him the confidence to leave his job and dedicate himself fully to building Fracspace. 

“Co-ownership is gaining attention now, but it was a very new concept when I started. So, it took time to convince prospective investors. However, once I found one, I made the decision to leave my decent-paying job and fully commit to my business,” Unnath shared. 

From this modest start, Fracspace has grown rapidly. The company now boasts over 200 customers worldwide, managing around 23 properties. It even built its first company-owned holiday home within just 90 days, with plans for more such properties in the pipeline. 

Digital Innovation for Property Investment: 

Fracspace’s digital platform is designed to simplify real estate investment for users. Available as an app on both the Play Store and iOS, it allows users to browse properties based on their location preferences and investment goals. The platform also provides secure investment options, offering a minimum 8% annual return, making it an attractive choice for investors seeking steady returns. 

Fracspace takes care of the entire property management process, from maintenance to generating rental income, ensuring a hassle-free experience for co-owners. As part of their investment, co-owners can even enjoy the property for seven days a year, offering them a unique blend of investment and personal use. 

Building an Empire: 

From its humble beginnings, Fracspace has grown into a Rs. 30 crore empire within just two years. In its first six months, the startup generated Rs. 2 crore in turnover, which soared to Rs. 12 crore by the end of 2022. In 2023, this figure climbed further to Rs. 30 crore, with a 30% profit margin. 

Looking forward, Fracspace has ambitious plans to reach a turnover of Rs. 100 crore within the next three years. A major part of this strategy includes hosting India’s biggest real estate expo in April 2025 in Hyderabad, featuring properties from 30 countries. This event aims to draw in new customers and boost the startup’s revenue, further solidifying its presence in the market. 

Key Milestones of Fracspace's Journey: 

Since its inception, Fracspace has achieved several notable milestones, solidifying its reputation in the prop-tech industry. It has successfully attracted a substantial number of investors who trust and embrace the fractional ownership model, showcasing the appeal and reliability of Fracspace’s offerings. The startup has consistently expanded its property portfolio, providing a diverse range of high-quality investment opportunities in desirable locations, reflecting its expertise in property curation. Positive feedback and testimonials from satisfied investors further validate the effectiveness of Fracspace’s approach, highlighting the value it brings to those looking to enter the real estate market. Additionally, Fracspace has gained industry recognition through media coverage, participation in key events, and collaborations with reputable organizations, bolstering its credibility and showcasing its role in transforming the real estate investment landscape.

Plan Ahead:

Fracspace’s goal is clear, to make property ownership accessible and affordable for India’s middle-class families. With its co-ownership model and focus on secure investments, Fracspace is set to become a major player in the prop-tech space, helping more individuals achieve their real estate dreams. As Unnath puts it, "We aim to bring the joy of property ownership to middle-class families, making it accessible and affordable for everyone." 

With its unique approach and rapid growth, Fracspace is not just a startup but a movement, challenging the traditional barriers of real estate investment and offering a new path for aspiring property owners. 

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