[Funding alert] Real-estate investment startup Strata raises $6M in Series A round

Strata, a Bengaluru-based real-estate investment tech startup, has raised $6 million in a Series A round co-led by Kotak Investment Advisors Limited, Gruhas Proptech (an exclusive fund by Nikhil Kamath of Zerodha and Abhijeet Pai of Puzzolana Group for proptech investments and special situations), Sabre Investments (an investment arm of Rahul Talwar, Promoter Family of DLF).

This round also saw participation from Elevation Capital, Mayfield India and Gemba Capital.

According to the official statement, the startup will use this capital to expand aggressively in the next year, taking its current Asset under Management (AUM) of Rs 330 crore to Rs 1500 crore by FY21-22.

Sudarshan Lodha, CEO of Strata, said,

“This fresh round of financing comes at a critical point in our business, enabling us to accelerate our expansion plans and build and innovate our product portfolio, as we gear up for our next phase of growth. We are delighted to bring on-board immensely diverse investors — a veteran like Kotak Investment Advisors and a dynamic new-age fund like Gruhas Proptech, representing the perfect blend of consummate experience and operational agility.”

Additionally, the startup plans to expand its footprint across Mumbai, Hyderabad, Chennai Bengaluru, Delhi and, Pune. It also aims to accelerate product development and introduce new investment offerings to yield greater returns for its investors in the long term.

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Srini Sriniwasan, MD, Kotak Investment Advisors Limited said,

“Strata, in a very short span of time, has built a powerful asset class that is easily accessible to the masses. Investment in CRE has predominantly remained off-limits for most sections of the investor community in India. However, Strata has managed to close the gap by giving investors accessibility, transparency and affordability to invest in CRE through its offerings. We are delighted to partner with Sudarshan and Strata in their next phase of growth.”

Incorporated in May 2019, and founded by Sudarshan Lodha and Priyanka Rathore, Strata is designed to help reduce the high capital requirement for investors, bring in expertise and introduce liquidity to an otherwise rigid marketplace.

Currently, Strata claims to have over 15,000 users on its platform along with an active base of more than 1,000 investors globally. While 20 percent of the investor base comprise NRIs, others include HNIs, family offices, top management from Fortune 500 companies as well as UHNIs and institutional investors.

Further adding, Abhijeet Pai, Gruhas Proptech said, 

“By offering CRE investment on a platter, and empowering masses to access it as a promising asset class, Strata has built a niche for itself in regard to alternative wealth creation. We are extremely kicked about this unique proposition and believe there is immense room for disruption and growth. The combination of technology and strong product capabilities will help usher in a ‘new age’ in real-estate investing in India. We are super excited to back team Strata in helping build India’s largest alternative asset investment platform.”

In March 2020, Strata had raised $1.5 million in seed funding, co-led by Elevation Capital and Mayfield India, along with participation from PropStack angel investors.