CAPITALRISE, the online prime property lending and investment platform, has raised £2m in seed funding from the family of an Indian banking entrepreneur.
The investment was provided by Raakhe K Tandon, who is the daughter of Rana Kapoor, founder of India’s fourth largest private bank, YES Bank.
it will be used to expand the CapitalRise team and open up new property investment opportunities on the platform.
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“This investment comes at the perfect time for CapitalRise,” said Uma Rajah, chief executive at CapitalRise.
“Over the past 19 months we have built our technology platform and proved our business model, having already paid out over £2m back to investors.
“Our latest opportunity was fully funded in under two business days, witnessing, on average £730,000 of funding raised from our members each working day (with a waiting list of members ready to invest in our upcoming projects). This seed funding will underpin our next stage of growth, helping us to grow the team and pursue more opportunities for investors and developers alike.”
Tandon said that “the size of the market opportunity and quality of the management team” gave them confidence in the platform.
“We look forward to working with shareholders and management with a combined ambition of making CapitalRise highly successful and a leader in its field,” she added.
CapitalRise connects investors with prime real estate opportunities, delivering average annual returns of more than 10 per cent. It originates both debt and equity funding for property developers on its platform.
There is a minimum investment of £1,000 and members can now benefit from tax-free earnings via CapitalRise’s Innovative Finance ISA.