Bangalore-based fintech startup BHIVE Investech has announced a financial product, revenue-based financing (RBF), with an aim to provide retail investors with access to highly curated and vetted investment opportunities.
BHIVE recently launched a state-of-the-art 800 seater coworking centre at HSR Layout, Bengaluru, that utilises a warehouse design for coworking. The startup says it is leveraging its expertise in the coworking space to provide an opportunity to invest in the coworking space of HSR Layout, Bengaluru, through RBF.
“We want to bridge the gap by providing retail investors access to institutional quality real estate, which was previously accessible only by private equity funds, and offer these opportunities as a monthly cash-flow return instrument and help investors diversify their portfolio,” says Shesh Paplikar, CEO and Co-founder, BHIVE Investech.
BHIVE says it had previously offered a similar RBF investment opportunity for its MG Road coworking centre, which was sold out within two weeks and was oversubscribed.
“We got oversubscribed to our RBF offering at BHIVE MG Road within two weeks and are super-excited to be able to use this investment structure for the upcoming largest coworking space of HSR Layout,” says Shesh.
BHIVE says its RBF product provides investors with an opportunity to earn 2.6X return on their investment by giving a projected average return of 2.4 percent per month for a period of nine years (monthly payments for 108 months) with capital protection.
BHIVE’s co-working space design at HSR Layout, Bengaluru
According to BHIVE, while this concept has been around since the 1980s, RBF became popular with small yet growing businesses as this is not a traditional debt or equity financing, and unlike traditional models, the returns are based on how much revenue a business earns.
Relative to the traditional investment options like fixed deposit and volatile options like stocks, investing through RBF provides investors with the opportunity to earn higher returns with medium risks. RBF also provides monthly returns, unlike other high-return generating opportunities.
Globally, there are various RBF companies like Clearbanc, Bigfoot Capital, Earnest Capital etc, to name a few. In India, there are companies such as Klub, GetVantage, and N+1, with many more emerging.
Specialising in providing end-to-end solutions that aid in transparency and trust in all their processes, BHIVE says it aims to become a one-stop solution for all commercial real estate investments.
“We have now moved to this revolutionary financing model to provide an opportunity to the common man to invest in our upcoming coworking properties for great monthly returns,” Shesh says.
