Hyderabad Startup Lets You Co-own a Property, Clocks ₹30 Cr in Revenue

Leaving a high-paying job to follow a dream is a bold decision. Unnath Reddy, a 35-year-old corporate employee turned entrepreneur, did just that. While working as a sales head in a real estate company and earning ₹1 lakh per month, he began experimenting with his innovative idea.

“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 says during an exclusive conversation with Startup Pedia.

Hence, he came up with the idea of co-ownership, where a group of people could pool their resources to invest in a property. This concept offers an affordable and reliable way for middle-class families to participate in real estate investment.

In 2022, Unnath Reddy launched Fracspace, a Hyderabad-based prop-tech startup. Fracspace offers co-owned real estate investment opportunities, focusing on affordability and reliability for middle-class families.

Fracspace in Detail

Fracspace’s innovative co-ownership model allows multiple investors to buy and co-own properties, sharing the costs and benefits. This approach not only makes property ownership more affordable but also diversifies the investment risk.

Fracspace offers properties for co-ownership in a variety of locations. These include holiday homes in popular destinations like Goa and Munnar, as well as international properties in Bali, Dubai, and the USA.

The Hyderabad-based prop-tech startup, Fracspace, avoids holding properties for more than five years to prevent depreciation and maintain the profitability of investments. Additionally, Fracspace implements a one-year lock-in period for investors, allowing them to exit at any time after the first year of investment.

The Hyderabad startup offers an app available on both Play Store and iOS. This app lists properties based on location preferences and investment goals, making it easy for users to browse and invest in real estate.

Fracspace’s secure investment model offers a minimum 8% annual return, providing a stable income for investors. The company’s approach ensures that investors can enjoy the benefits of property ownership without worrying about additional expenses or financial risks.

“We provide end-to-end property management services, handling everything from maintenance to generating rental income returns, ensuring no additional expenses for co-owners. Investors can enjoy the property for seven days a year because that’s their property,” the founder of Fracspace says while explaining his prop-tech in detail to Startup Pedia.

Early Life of Fracspace Founder

Unnath Reddy hails from a Bangalore-based family. His mother is a housewife, and his father used to run a pre-owned car business. Financially, the family has been able to make ends meet. Unnath himself is an MBA graduate, while his elder brother serves as the CEO of a credit firm.

As Unnath put it, "I don’t come from a well-to-do family, but my father did everything to provide us with a good education. We've all come from humble beginnings to where we are today. That's all I would say," he shared during the conversation with Startup Pedia. Unfortunately, his father passed away last year.

Unnath’s professional journey began while he was in college. He started working with Times of India at the age of 16. It started with the aim of earning some pocket money as an intern, which was Rs. 6000 per month, but then he continued.

However, after some time, he shifted to the hospitality industry and later transitioned into real estate. It was during this period that he gained valuable insights into real estate investment and observed the challenges faced by middle-class individuals struggling to invest due to high property prices.

0-1 Journey of Fracspace

Fracspace founder Unnath Reddy started his entrepreneurial journey with just Rs. 60,000, initially working from home without an office.

Within three months, Unnath found his first real estate investor, securing Rs. 10 lakh. This success gave him the confidence to leave his job and fully dedicate himself to his prop-tech startup.

“Co-ownership is gaining traction now, but it was a very new concept when I started. So, it took time to convince my prospective investors. However, once I found one, I made the decision to leave my decent-paying job and fully commit to my business. I felt a responsibility to ensure my clients were happy and receiving the returns promised,” Unnath told Startup Pedia.

Since then, there has been no looking back. What started with just one investor and property has now burgeoned into over 200 customers worldwide, managing around 23 properties.

Moreover, Fracspace also owns one holiday home property, which was built in just 90 days. The company has plans for more such company-owned properties in the pipeline.

Within six months of starting the business, Unnath, who initially worked alone from home, moved into an office. Today, the company has grown to include 46 team members serving 200 customers worldwide.

Financial Journey of Fracspace

The bootstrapped Hyderabad-based prop-tech startup, Fracspace, which began with just Rs. 60,000 and secured its first client for Rs. 10 lakh, has now grown exponentially into a Rs. 30 crore empire.

While elaborating on Fracspace's financial journey, Unnath revealed to Startup Pedia that the company generated Rs. 2 crore in turnover within the first six months. This figure increased to Rs. 12 crore by the end of its first year in 2022. By the end of the second year in 2023, Fracspace's turnover had reached Rs. 30 crore.

“We have maintained a 30% profit margin out of the overall turnover we generate,” Unnath told Startup Pedia.

The Plan Ahead

The prop-tech startup has ambitious targets. Having already surpassed Rs. 30 crore in turnover within two years, it now aims to reach Rs. 100 crore within the next three years.

While discussing the plan to achieve this target, Fracspace founder Unnath Reddy explained that the company plans to host India’s biggest and first real estate expo in April 2025 in Hyderabad. At this event, Fracspace will showcase properties from 30 countries.

This initiative aims to attract more customers and significantly increase Fracspace's revenue. "We aim to bring the joy of property ownership to middle-class families, making it accessible and affordable for everyone," Unnath says. With its secure investment model, Fracspace is well-positioned to achieve this goal.