From Rs. 60,000 to Millions: Unnath Reddy's Journey with Fracspace
Fracspace, founded by Unnath Reddy, has grown from a small investment to manage over 23 properties. The startup focuses on co-ownership models, making expensive properties affordable for middle-class families. Unnath’s strategic approach involves expandin
FracspaceUnnath ReddyCoownershipReal EstateProptechReal Estate MumbaiOct 10, 2024
Fracspace was founded in 2022 with an initial investment of just Rs. 60,000. The prop-tech startup offers properties to investors through co-ownership models, aiming to make owning expensive properties more affordable for middle-class families. Unnath’s vision was to democratize property ownership by sharing costs among multiple stakeholders.
Initially, Unnath operated from his home, but within three months, he secured a substantial investment of Rs. 10 lakh. This investment gave him the confidence to leave his corporate job and fully commit to Fracspace. Since then, the company has seen remarkable growth, providing numerous investors with the opportunity to co-own properties.
To ensure that properties generate consistent rental income, Fracspace employs a combination of targeted marketing strategies, listings on popular vacation rental platforms, and an in-house booking system. The company carefully selects properties in high-demand locations to attract a steady flow of tourists and business travelers. According to Unnath, this approach has proven successful, with the company currently managing over 23 properties in popular destinations like Goa, Munnar, Bali, and Dubai.
Fracspace has achieved significant milestones in a short period. In its first year, the company generated a turnover of Rs. 12 crore, and in the following year, this figure more than doubled to touch Rs. 30 crore. Unnath attributes this success to thorough research and a strategic selection of properties based on their tourism appeal and rental value.
One of the standout properties managed by Fracspace is the Luxury Suite Room of Eleven Views in Banjara Hills, Hyderabad. This high-end property offers breathtaking views, an open terrace with a hot tub, and is located in one of the city’s most prestigious neighborhoods. It is suitable for both personal use and luxury travelers, ensuring a high rental income. Another notable example is the Hilltop Munnar Resort in Kerala, which provides stunning views of the hills and tea plantations, making it a favorite among nature lovers and those seeking a peaceful getaway.
Fracspace also has a strong presence in Goa, where tourism thrives year-round. The company manages vacation homes and glamping resorts that cater to a wide range of travelers. In Bali, their properties are located in prime areas like Ubud and Seminyak, attracting business-class visitors. Unnath and his team actively manage rental pricing, adjusting it seasonally to reflect market trends.
Looking ahead, Fracspace is confident of achieving a turnover of Rs. 100 crore in the near future. The company is expanding its international presence, with plans to establish properties in regions like Bali, Dubai, Thailand, and the Maldives. These locations are chosen for their significant tourism appeal and strong potential for short-term rental income. In India, Fracspace is focusing on tier-2 cities such as Jaipur, Manali, Coorg, and Ooty, which offer promising investment opportunities.
Unnath Reddy’s strategic approach also involves diversifying the company’s portfolio to include commercial properties, particularly in business hubs like Mumbai, Bangalore, and Dubai. This expansion will cater to investors seeking rental income from both tourism and business travel, ensuring consistent returns across various property types.
To further promote its co-ownership business model, Fracspace plans to host a large real estate expo in 2025. The event aims to connect potential investors, industry leaders, and key stakeholders in the real estate sector, fostering a network of opportunities and growth.
Frequently Asked Questions
What is Fracspace and who founded it?
Fracspace is a prop-tech startup founded by Unnath Reddy. It offers properties to investors through co-ownership models, making expensive properties affordable for middle-class families.
How did Fracspace start with only Rs. 60,000?
Unnath Reddy started Fracspace in 2022 with an initial investment of Rs. 60,000. Within three months, he secured Rs. 10 lakh from an investor, which gave him the confidence to leave his corporate job and fully commit to the venture.
What is the unique business model of Fracspace?
Fracspace’s unique business model involves offering properties to investors through co-ownership. This model allows multiple investors to share the costs of expensive properties, making ownership more accessible and affordable.
Where are some of the properties managed by Fracspace located?
Fracspace manages properties in popular destinations like Goa, Munnar, Bali, and Dubai. These locations are chosen for their high tourism appeal and potential for rental income.
What are the future plans for Fracspace?
Fracspace plans to expand its international presence and diversify its portfolio to include commercial properties in business hubs like Mumbai, Bangalore, and Dubai. The company also aims to host a large real estate expo in 2025 to promote its co-ownership business model.
Related News Articles
Portugal's Golden Visa Program Gets a Revamp to Boost Affordable Housing
Portugal's Golden Visa program has undergone significant changes to address concerns over its impact on the housing market, making it more challenging for foreigners to buy homes.
Why 1 BHK Homes are Becoming a Hit Among Millennials in Bengaluru
High rental yields and rising affordability levels are driving demand for 1 BHK housing units among millennials in Bengaluru
MahaRERA Reverts to Old Website Amid Technical Glitches on MahaCRITI
Maharashtra Real Estate Regulatory Authority (MahaRERA) has temporarily switched back to its old website due to technical issues on the new MahaCRITI website, causing delays in services for homebuyers, developers, and other stakeholders.
Affordable Housing to Receive a Boost from Repo Rate Cut and Tax Exemptions: Hiranandani
Mumbai (Maharashtra) [India], February 7 (ANI): The real estate business is set to see significant improvements, particularly in the affordable housing segment, thanks to recent repo rate cuts and tax exemption reliefs. According to experts at Hiranandani
Bhutani Group Cooperates with ED in Money Laundering and Fraud Investigation
Real estate firm Bhutani Infra has announced its cooperation with the Enforcement Directorate (ED) in an ongoing investigation into alleged money laundering and fraud involving home buyers.
Dubai Pioneers Real Estate Tokenisation in Web3 Collaboration
Dubai has launched a pilot phase for real estate tokenisation, a groundbreaking project that leverages Web3 technology to streamline property transactions and enhance market liquidity. The initiative is expected to transform the real estate sector by offe