MC Exclusive | Arbour Investments picks up a stake in prop-tech firm Justo Realfintech for $7 mn

Arbour Investments has infused around $7 million into Justo Realfintech, in a mix of equity and debt

Arbour Investments, which is focused primarily on real estate assets, has acquired a "significant" minority stake in property technology firm Justo Realfintech for $7 million, which includes $5 million in equity and the rest in debt. Arbour founder Chirag Mehta told Moneycontrol that the acquisition unlocks multiple synergies with the company's ongoing and upcoming investments.

As part of the investment into Justo, Mehta and Priyesh Chheda, who are also founders of Arbour Investments, have been appointed to Justo's board of directors.

Mumbai-based Justo Realfintech's largest presence is in Pune, where it works with leading developers in the city for accelerated sales for various projects, especially for group housing projects. The company also has a presence in the Mumbai metropolitan region, including Thane and Navi Mumbai. Justo primarily operates in the mid-ticket-size property segment.

"The stake acquisition helps us on multiple fronts. Before we invest in any real estate project, we need to conduct due diligence, and Justo can help us in that process with their market intelligence. It can also help us better negotiate with the developers we are investing in, and can also provide a sales partner for the projects we are investing in. For us, recovery of our investment is important, and thus we can also loop in our sales risk," Mehta said.

He added that Justo's presence in markets like Pune, and its collaboration with leading developers in the market, also give Arbour the access to developers for potential investments. Capital market veterans Sanjay Gaitonde and Mahavir Mehta, stakeholders in Arbour Investments, helped in closing the deal with Justo Realfintech.

"With Arbour's financial backing and strategic insights, we are poised to accelerate our growth trajectory, expand our market presence, and continue delivering exceptional value to our clients," said Pushpamitra Das, founder and director of Justo Realfintech, in a statement.

As for Arbour's other potential investments, Mehta said that the company has signed term sheets for around Rs 350 crore worth of investments, and has a pipeline of around Rs 1,000 crore, including real estate and non-real estate investments.