Bengaluru-based real estate startup, with an India-first launch strategy, has raised $1.6 million in equity in a seed round and $2.0 million in callable mezz debt for co-investing into real estate assets, the company said in a release.
ALT DRX in its seed rounds, has seen investor participation from one of India’s top law firms, renowned family offices, successful startup founders, unnamed senior professionals from Development Bank of Singapore, Ernst & Young, HSBC, Volvo, Salesforce, among others. The Platform has also set up a Development Management Company for building income generating alternate real estate assets in partnership with the Kolte Patil Family Office.
The global real estate market at $230 trillion is estimated to be larger than the combined value of global stocks and bonds at $170 trillion.
Experts believe that the next 7 to 10 years, tokenisation of real estate would pave way for very large real estate exchanges to emerge across the world, which in size, scale and credibility would compete against the likes of NASDAQ or SGX or NSE.
ALT DRX, a funded home-grown startup from Bengaluru, has launched the world’s first stock exchange like, digital real estate Marketplace, allowing Indians to invest in dematerialised real estate, 1 sq. ft. at a time.
“ALT DRX will solve the problem of illiquidity in mid-size real estate assets and possibly open the gates for capital to move into socially relevant, rent yielding real estate assets such rental housing, hostels, care homes, holiday homes, schools, industrial warehousing, high-street retail, hotels and managed Offices. ALT DRX will allow owners of these real estate assets to dematerialise their real estate ownership, into tokenised tradeable digital assets, i.e., say a 50,000 sq. ft. building being tokenised into 50,000 tradeable digital assets, each of which hold the economic value, proportionate to 1 sq. ft. of the said property,” the company said.
“These tradeable digital assets can then be bought, held, traded at real-time prices and settled instantaneously between pre-qualified, KYC compliant registered users of www.AltDRX.com. The platform uses a permissioned centralised blockchain based ledger protocol which restricts the transfer of these digital assets to foreigners, while attempting to build user credibility, by using Zero Trust Architecture,” said Sachin Joshi, Co-Founder and CTO, ALT DRX.