How a Hyderabad-Based Startup Owner Turned Rs. 60,000 Investment into Rs. 30 Crore Turnover in Just Two Years

Hyderabad-based Unnath Reddy, who began his career at the age of 16 as an intern at The Times of India earning Rs. 6,000 per month, later gained experience in the hospitality and real estate sectors before launching his own company, Fracspace.

Founded in 2022 with just Rs. 60,000, Fracspace is a prop-tech startup that offers properties to investors through co-ownership models.

Dedicated to solving middle-class challenges, Unnath Reddy, founder of Fracspace, focuses on co-ownership (Photos: Special Arrangement)

Unnath’s vision behind starting the company was to make owning expensive properties affordable for middle-class families by sharing the costs with other stakeholders.

Initially, Unnath worked from his home, but within three months, he found an investor who invested Rs. 10 lakh into the business.

This investment gave Unnath the confidence to leave his corporate job and fully commit to the venture. There has been no turning back since then. His unique business model has provided opportunities for multiple investors to buy and co-own properties.

“To ensure properties generate consistent rental income, we leverage a combination of targeted marketing strategies, listing the properties on popular vacation rental platforms, and using our in-house booking systems. We also carefully select properties in high-demand locations, where there is a steady flow of tourists or business travellers,” says Unnath.

The company claims to offer an 8% annual return on investments and currently manages over 23 properties, many of which are located in holiday destinations like Goa, Munnar, Bali, and Dubai.

In its first year, Fracspace achieved a turnover of Rs. 12 crore, and in the next year more than doubled to reach Rs. 30 crore.

According to Unnath, the properties are carefully chosen in prime areas after conducting thorough research based on their tourism appeal and rental value.

Believing in thorough research, Unnath Reddy carefully selects properties for Fracspace

He points out that one such property is the Luxury Suite Room of Eleven Views in Banjara Hills, Hyderabad.

This high-end property offers stunning views, an open terrace with a hot tub, and is located in one of the city’s top neighbourhoods, making it suitable for both personal use and luxury travellers, ensuring high rental income.

Another example is the Hilltop Munnar Resort in Kerala, which provides beautiful views of the hills and tea plantations, attracting nature lovers and those looking for a peaceful vacation spot.

In Goa, where tourism is a year-round business, they have vacation homes and glamping resorts. In Bali, their properties are located in Ubud and Seminyak, catering to business-class visitors. “We actively manage rental pricing and adjust it seasonally to reflect market trends,” says Unnath.

The company is confident of achieving Rs. 100 crore turnover soon and is focusing on expanding its international presence, with plans to establish properties in locations like Bali, Dubai, Thailand, and the Maldives.

Unnath Reddy’s strategic approach involves expanding Fracspace internationally

“These regions have significant tourism appeal and strong potential for short-term rental income,” says Unnath. In India, they are focusing on tier-2 cities such as Jaipur, Manali, Coorg, and Ooty.

“We are also diversifying our portfolio to include commercial properties, particularly in business hubs like Mumbai, Bangalore, and Dubai. This approach will cater to investors seeking rental income from both tourism and business travel, ensuring consistent returns across various property types,” he adds.

The company plans to host a large real estate expo in 2025 to promote its co-ownership business model. They aim to connect potential investors, industry leaders, and key stakeholders in the real estate sector through the event. - TWL Bureau ©TWL