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In this series, we cover all companies/startups that are offering alternative investments on their platform. We cover their corporate structure, products they offer, etc.
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Real estate has traditionally been a “high-ticket” asset class. Either having lakhs (or even crores) of Rupees in your bank account or taking a huge home loan were the only two prominent ways to buy property.
But that is changing now with fractional investing coming into the picture and gradually gaining prominence. So today, we are doing a deep dive into an emerging platform in this category: Bengaluru-based PropFTX. They had even appeared on Shark Tank India (Season 5), in the 28th Episode.
In this company profile blog, we will break down who’s behind PropFTX, how its investment model works, where the platform earns its money from, and what we like and dislike about the platform.
Let’s begin..
PropFTX was founded in 2023 by Rajeev Chhabra and Varun Singhi. The company is currently bootstrapped and has not raised any external funding yet.
As per MCA data (as of 9th February 2026), both of PropFTX’s co-founders are its Directors.
Let’s have a brief look at the profiles of the co-founders.
Rajeev has an experience of three decades in the real estate industry, especially in the Business Development vertical of companies like The Phoenix Mills, Alembic Real Estate, and Adel Landmarks. He completed his B.Com (Hons) from the prestigious Delhi University’s Kirori Mal College, and then his MBA (Marketing) from the YMCA Institute of Management Studies.
Varun has core experience in technology and cryptocurrency industry, with key roles in companies like Wipro, Cognizant, DXC Technology, KapitalDX and Aquarius Exchange before starting PropFTX. As far as his educational background is concerned, Varun had completed his Bachelor of Engineering - BE, Electronics and Instrumentation from the Anna University Chennai, and he went on to do MBA (Business Administration and Management) from the Asia School of Business.
Now let us understand what PropFTX actually does and how it works.
Bengaluru-based PropFTX is a fractional real estate investment platform that allows investors to own fractions of premium real estate assets through secure digital tokens. This makes real estate accessible by reducing the entry cost in real estate from crores to a few lakhs or even lower. The lowest deal size we saw on their platform was for Rs. 37,000 (as of 9th February, 2026).
The types of real estate offered by PropFTX includes residential properties (apartments, villas, and standalone homes,) commercial properties ( Warehouses, Offices, Data Centres, and more), as well as plots (residential plots, commercial parcels, and farmlands).
Here’s a step by step process of how PropFTX offers fractional real estate to investors:
SPV Creation: For each property listed on PropFTX, the platform creates a private limited company called SPV, with up to 200 equity shares (tokens). One investor can buy at most 5 tokens, a step taken by the platform to prevent monopolisation.
Token Pricing: The property value gets divided by the number of tokens to arrive at the token price. For example, a Rs 1 crore property divided by 200 tokens would result in the token price of Rs 50,000 per token. Investors can buy fractional ownership in that property through those token pieces.
Funding Phase: Your invested money flows directly into the SPV account. The money is held in the escrow account and gets released to the builder only when the property’s pool hits the 100% funding target.
Here, it's noteworthy that PropFTX takes a time of 150 days from the builder to monetize that property. The platform does not buy the property but takes its inventory and opens it for the public to invest in it.
If the property gets under 50% funding after those 150 days, PropFTX gives full refund of the token amount to the investors. Whereas if the funding is 70%-80%, PropFTX’s anchor investors top up for the remaining portion to hit the 100% mark.
Ownership Transfer: If the funding hits the 100% mark, the property title gets registered in the SPV's name and the investors hold shares with blockchain-recorded tamper-proof transactions for transparency, traceability and enhanced security.
Income & Management: As and when the tenant pays the rental income from the property or land, it is transferred to the SPV who then transfers it to the token holders monthly. Here, the platform PropFTX's asset management handles maintenance cost, ROC compliance, etc.
Exit process: If you want to exit an investment, PropFTX has itself created a resale marketplace on its platform where you can register. But you can do so only after 150 days of lock-in. Also, there has to be an approval from 70% of shareholders of the property if you want to sell your token.
Now that you have a fair idea about how PropFTX works, let’s also bring to you its business model to understand the key sources from where the platform earns money:
Builder onboarding fee: 1% of property value upfront (paid by the builder)
Builder success fee: 3% upon reaching full funding (paid by the builder)
Investor transaction fee: 2.5%, including 2% standard commission + 0.5% platform services (paid by the investor)
Resale marketplace fees: 1-2% each from both buyer and seller
As per our conversation with PropFTX’s founder Rajeev recently, investors can expect potential returns in the following range*:
Residential rental yields: 3%-4% annually
Commercial rental yields: 6%-10% annually
Residential property appreciation: 7%-8% CAGR (last 15 years average)
Commercial property appreciation: 5%-6% annually
Total expected returns: 9%-10% residential, 12%-14% commercial
\ Please note that these are averages, and the actual yield and appreciation will depend on factors such as geography, type of property, etc.*
While there are no guidelines regarding the taxation of tokenzied real estate from the SEBI’s side yet, as per our understanding, here’s how the taxation works.
-For the tokenised real estate offering, the structure is aligned with equity shareholding in the underlying SPV.
-Accordingly, LTCG taxation will be treated similar to listed equity shares:
Long Term Capital Gain (LTCG) applies if held for more than 12 months LTCG is taxed at 12.5% (without indexation) on gains exceeding ₹1.25 lakh in a financial year
Short Term Capital Gain (STCG) at the rate of 20% applies if sold within 12 months.
That said, final tax treatment will depend on individual investor circumstances and existing prevailing tax guidelines at that time. It’s always recommended to consult your tax advisors.
Lowers the entry barrier for real estate: With minimum investment amount being as low as Rs 37,000 (as on 9th February, 2026), PropFTX is helping lower the entry barrier for real estate, which otherwise requires lakhs or crores of Rupees.
Skin in the game: While their website doesn’t mention anything on these lines, as per our conversation with PropFTX’s founder Rajeev, PropFTX invests in every SPV through a 0.01% stake. In such a case, the platform having its own skin in the game brings an added layer of trust amongst investors.
Big names amongst strategic partners: PropFTX’s strategic partners include big names like Microsoft and Amazon Web Services (Cloud partners), SBI and DBS Bank (Banking partners), PayU (Payment partner) and Castler (Escrow partner). This boosts investor confidence on the platform’s reliability and structure.
Experienced leadership: The vast experience and knowledge that PropFTX’s founders bring in the real estate and technology segment adds credibility to the platform.
Escrow-secured investments: All funds pooled in from investors are safeguarded in Escrow, thus ensuring secure and transparent transaction.
Not regulated yet: Although PropFTX operates within the ROC (Registrar of Companies) compliance framework, it is currently an unregulated platform as there are no clear regulations on fractional investments from SEBI’s side yet.
Exit dependency on other shareholders: You need the approval from 70% of shareholders of the property if you want to sell your token. This means that if you don’t get that much approval, you would not be able to exit from the investment even if you want to.
Lock-in period: Besides the dependency on other shareholders, there is one more condition when exiting your investment on PropFTX platform – Investors on the platform become eligible to exit your investment only after 150 days of lock-in period. Before that, you can’t exit your investment.
PropFTX is amongst the few platforms representing the growing shift towards fractional real estate investing in India by lowering entry barriers and combining traditional property ownership with digital infrastructure. The platform has an experienced founding team, robust escrow-backed structure, and a transparent SPV-based model.
However, factors such as the lack of formal regulation, lock-in period, and exit dependency on other shareholders make it essential for investors to approach with due diligence.
Please note that this is an opinion blog and not an official research or investment advice*. This blog aims to help retail investors make an informed decision, and it neither encourages nor discourages you from investing in any particular platform or property or any asset class.*
