Inspiration

Real Estate investing is broken for retail investors …

  • Retail investors invest in residential real estate despite it generating only 2-3% rental yields
  • Decisions driven by proximity and budget
  • Exits driven by needs not prudence, compromising ROI

The pain points being

  1. Access - Limited avenues of discovery of institutional deals
  2. Affordability - Transaction size is out of reach
  3. Asset Management - Managing corporate tenant(s)/portfolio of properties requires sophistication
  4. Liquidity - Assets generally illiquid because of above factors

What it does

Frxnl offers Tokenized Fractional Ownership with Professional Management. Fractional Ownership is a method where several investors put small sums of money to individually own a fraction of a high-value property. A digital platform gives access to investors to invest and monitor with ease, equivalent of stock trading. We solve the retail investor problems os

  1. Access - Frxnl sources high quality institutional opportunities
  2. Affordability - Small investment sizes provide agility and opportunity to diversify
  3. Asset Management - Institutionally analyzed and professionally managed for superior returns
  4. Liquidity - An end-to-end hassle-free online investment & management process

How we built it

We took an incremental approach and started with the off-chain MVP for asset listing and distribution for private deals. The MVP helped us iron out the workflows and processes. The next step was to build a platform for mass usage. We partnered with Razorpay for payments, ICICI Bank for Digi Escrow, Catalyst for Trusteeship and Custodian services, Invoid for KYC and built a robust platform for distribution and management of Tokenized assets We are now building a completely On-Chain solution that would plug into our dashboard and implement all the functionalities extended by Frxnl to its customers.

Challenges we ran into

Building a framework that would allow the sale and management of Real Estate in a highly regulated and complex market like India was a very tall order. Working with several partners and getting the Banks, Trustees, Payment providers onboard with a model like tokenized assets.

What we learned

The Off-Chain Frxnl platform helped us understand the intricacies of asset tokenization and the processes and compliance requirements. The workflows and processes perfected on our current system are being be used as a reference for developing our complete On-Chain platform

What's next for Frxnl

  • Tokenized Asset Listing and Sale
  • On-Chain Identity & KYC implementation
  • On-Chain Compliance Engine
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