An exclusive interview with Mananki Parulekar, Co-Founder of Claravest Technologies, a fractional real estate investment company
Mananki Parulekar has a decade of experience in Finance and Fintech, gained through her work in Silicon Valley, California, USA. Mananki spent 6.5 years at KPMG, where she conducted pre-IPO (Initial Public Offering) and post-IPO assessments of technology companies in Silicon Valley, including prominent firms such as Zoom, Adobe, and DocuSign.
After her KPMG tenure, Mananki joined Robinhood, a Silicon Valley Unicorn, for approximately 3.5 years. At Robinhood, she played a pivotal role in the initial compliance team, contributing to Robinhood’s IPO and compliance efforts. Later, her focus shifted towards conducting audits related to blockchain, Payments, and Data at Robinhood.
Coming from a family with a deep-rooted history in real estate, Mananki has been a passionate advocate for the industry from a young age. Her family background has equipped her with a strong network of real estate developers, brokers, marketing companies, and architects.
At Claravest, Mananki oversees the company’s finances, operations, and sales.
Can you please provide an overview of Claravest Technologies Pvt Ltd and how it differs from traditional real estate investment methods?
Mananki Parulekar: Claravest is a fractional real estate investment platform that allows retail investors to invest in Indian real estate starting with just Rs. 1 Lakh. Traditionally, real estate investment required people to either take a huge loan or have upfront capital in their account; this made access to real estate as an investment instrument very difficult. Claravest breaks these traditional barriers.
What inspired you to co-found Claravest Technologies, and what gap in the real estate investment market did you aim to address with your company?
Mananki Parulekar: Karan Shetty (co-founder of Claravest) and I lived in Silicon Valley, California, for a decade. During this time, we realised we could invest in various assets like stocks, cryptocurrencies, and mutual funds. However, despite our backgrounds in finance and technology, we couldn’t access a lucrative asset class – real estate – due to the substantial financial commitment it required.
We explored a few other real estate investment platforms in India that allowed fractional investments and noticed that the individual ticket size for those platforms was typically around Rs. 25 – Rs. 35 lakhs, which is still quite high for retail investors.
It was our desire to create a product that would enable non-HNI investors to participate in real estate, and this is how Claravest came to be.
Fractional real estate investment is a relatively new concept. Could you explain how it works and the benefits it offers to investors?
Mananki Parulekar: Let’s say you want to invest in a property, but it is too expensive to buy and take care of it; that’s where fractional real estate comes into play. With fractional real estate, multiple investors interested in the property can come together and co-own the properties, sharing both the costs and benefits.
The way this works is that we create a special purpose vehicle (SPV) in the form of a private limited company for every asset that is listed on the platform. Individuals who invest in the property become shareholders of this private limited company. The property is then purchased under the name of this company, and that’s how investors co-own the property.
The rental yields and appreciation that the property generates are passed on to the investors, and Claravest takes a small management fee.
When it comes to benefits, there are several. Individuals can now invest in thoroughly vetted properties (data-driven investment opportunities) with as low as Rs. 1 lakh. Investors can earn passive income through rental yields and property appreciation. Real estate serves as an inflation hedge, meaning its value tends to rise when inflation increases; hence, adding this to your portfolio can help you reduce volatility.
What types of properties does Claravest Technologies typically invest in, and how do you select these properties for fractional ownership?
Mananki Parulekar: At Claravest, investors invest in residential properties or second home/vacation properties located in high-growth areas with a potential for rental income. We have a pretty robust due diligence process that we follow before we onboard any property on our platform to provide the investors with the best returns.
We perform due diligence w.r.t. Property location, urban development in the area, infrastructure development near the property, legal records of the property, rental and resale potential.
Real estate investment often involves significant capital. How does Claravest Technologies make it accessible to a broader range of investors?
Mananki Parulekar: At Claravest, we stay true to our mission of making real estate affordable and accessible for all by providing a complete digital investment experience and having a low ticket size starting at Rs 1 lakh only.
We achieve this by acquiring high-growth properties at discounted prices, enabling individuals to start investing with as little as Rs. 1 Lakh. Additionally, we provide a comprehensive virtual investment experience, allowing investors to participate from anywhere in the world. Lastly, we prioritise complete transparency with our investors.
Real estate markets can be dynamic and subject to fluctuations. How does Claravest Technologies adapt to changing market conditions to protect the interests of its investors?
Mananki Parulekar: Among all asset classes, real estate is the least volatile. As I mentioned earlier, we prioritise investor protection through a robust due diligence process and by ensuring complete transparency regarding ownership and generated returns.
One significant way we build trust with our investors is by personally investing in each of our properties as a company, Claravest. This serves as our strongest testament to our confidence in our properties.
What does the future hold for Claravest Technologies? Are there any upcoming developments or plans you can share with us?
Mananki Parulekar: We just turned four months old, and we already have two properties, one fully funded and one is close to 100% funding. Next, we plan to expand to cities such as Pune, Goa and the GIFT City region. We also plan to focus on real estate investment education to help our investors make informed decisions.
What advice would you give to individuals considering entering the world of fractional real estate investment or starting their own fintech company in this space?
Mananki Parulekar: For those venturing into fractional real estate investment, my advice is to conduct thorough research. Engage with fractional investment platforms and inquire about their company structure, exit strategies, and due diligence procedures.
Seek insights from their current investors to gain an understanding of their experiences. Additionally, consult industry experts such as real estate developers and brokers to assess the investment location’s potential. Evaluate real estate data reports to validate the location’s viability.
In the world of real estate investment, where barriers to entry can be high, Claravest Technologies under the guidance of Mananki Parulekar has successfully unlocked opportunities for investors of all backgrounds.
Their commitment to transparency, innovation, and accessibility has not only benefitted investors but also transformed the way we think about real estate. As we conclude our conversation with Mananki, it becomes evident that the future of fractional real estate investment is bright and promising, thanks to the visionary leaders like him who are dedicated to reshaping the industry for the better.
We eagerly anticipate the continued growth and success of Claravest Technologies and the continued insights Mananki will undoubtedly provide to the ever-evolving world of real estate investment.
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