Mpowered seeks SEBI approval to set up AIF for retail investors

Mpowered is in the process of investing in four assets to create a portfolio across Noida and Gurugram.

Gurgram-based asset management startup Mpowered has sought the Securities and Exchange Board of India (SEBI) approval for setting up an alternative investment fund (AIF) which will allow retail investors to invest in commercial real estate for a promised return.

The company, which recently raised $21 million from high-net-worth individuals, helps property owners convert their real estate liabilities into profit-generating ventures.

"We will be creating a fund where individuals can invest their money in the multiples of Rs 25 lakh and get a certain percentage of return on the investment because most of these investments would be having a rental yield. They would also be able to do a forward sale of their investment to other people," said Sudeep Singh, Founder and CEO, Mpowered told Moneycontrol in an interaction.

The company typically looks at B and C grade of buildings and aims to convert them into A grade facilities by investing in them and implementing its various models on the properties as per the fitment in terms of size, location and infrastructure.

The company's last year's fund raising was led by serial entrepreneurs Ashok and Shelly Nichani. It has been utilising the money to invest in real estate verticals such as warehousing and commercial spaces besides enhancing the tech-solutions. Currently, Mpowered is in the process of investing in four assets to create a portfolio across Noida and Gurugram.

"The rental yield will be 8-9 percent and the return on capital will be upwards of 18 percent in totality," he said.

Prior to launching Mpowered, Sudeep was the CEO of BlackRock-backed co-working firm GoWork.