With only ₹60,000 in financing, the prop-tech startup Fracspace started operations in Hyderabad in the year 2022. That small investment carried the hopes of one person, Unnath Reddy. He wanted to make property ownership accessible to the middle class.
Fracspace offered co-ownership of properties so that multiple investors could share the cost, the risk, and the returns. For many families who could not afford full ownership, this was a breakthrough concept.
Within months, Unnath secured an investor who put in ₹10 lakh. That capital let him leave corporate life behind and fully devote himself to Fracspace. In its first year, Fracspace posted a turnover of ₹12 crore. The company’s co-ownership real estate strategy proved successful, as it grew to ₹30 crore the next year. Fracspace has subsequently maintained 23 properties in holiday locations and luxury neighborhoods, serving over 200 consumers worldwide. Their portfolio includes properties in Goa, Munnar, Bali, Dubai, and more.
“Within three months we secured our first investor. That changed everything and I went full-time,” said Unnath.
Unnath maintains that careful property selection with consistent rental demand, tourism appeal, and strategic locations was central to their growth. One of the strategies was to list multiple properties on the holiday rental platforms and to employ an in-house booking system to generate consistent rental income. This assured that properties were not idle, but rather revenue-generating assets.
Fracspace’s co-ownership real estate model works by pooling capital from multiple investors to purchase a property and then sharing the costs and proportional returns. This reduces the threshold for entry. It has a one-year lock-in period after which co-owners can exit. They also avoid holding properties beyond five years to limit depreciation.
From interviews, Unnath has said, “One of the main reasons that I got into the field of real estate was to make the experience of luxury accessible to the middle-class. With Fracspace, we’ve continued doing that. Our customers now get to become owners of luxury resorts in Goa at the fraction of the total cost. They get to spend some time of the year there as well.”
Fracspace’s plan is not limited to India. The company is eyeing global markets where property co-ownership can solve similar affordability gaps. They aim for ₹100 crore turnover within the next few years. To fuel expansion, Fracspace plans expos, tie-ups with real estate developers, and further investments in technology.The brand is also focusing on tier-2 and tier-3 cities in India, where real estate is cheaper but rental demand is rising.
This success proves that inclusion in property ownership is not just a dream for the wealthy but can be extended to the middle class.
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