In a world where real estate investment often requires substantial capital or loans, Karan Shetty and Mananki Parulekar are breaking down barriers and redefining the landscape of real estate investment with their innovative startup, Claravest.
These two visionary founders have brought their extensive experience and expertise in finance, fintech, and product development to create a platform that aims to make real estate accessible and affordable for all.
From Silicon Valley to India: The Genesis of Claravest
Karan Shetty and Mananki Parulekar, the dynamic duo behind Claravest, each have over a decade of experience in the tech and finance sectors. Their journey began in Silicon Valley, California, where they honed their skills in the fast-paced world of technology and finance.
Mananki Parulekar, with a Bachelor’s degree in Electrical and Telecommunications from Mumbai University and a Master’s in Management of Information Systems from Santa Clara University, kick-started her career at KPMG. During her 6.5-year tenure at KPMG, she conducted pre-IPO and post-IPO assessments for technology giants like Zoom, Adobe, and DocuSign. She then moved on to Robinhood, a Silicon Valley unicorn, where she played a crucial role in compliance and audits related to blockchain, payments, and data.
On the other hand, Karan Shetty, armed with a Bachelor’s degree in Computer Science from Manipal University and a Master’s in Management of Information Systems from Santa Clara University, ventured into healthcare and prop-tech companies such as SAP, Kaiser Permanente, American Express, and Kiewit in Silicon Valley. His expertise in product development and marketing would prove to be invaluable in Claravest’s journey.
The Birth of Claravest: Making Real Estate Accessible for All
Their decade-long journey in the valley was marked by a shared passion for real estate investment. However, they encountered a significant roadblock – the high barriers to entry. Either they needed massive capital or had to take out a loan. Simultaneously, they observed the rapid growth of the Indian real estate market and identified that many faced the same obstacles they had encountered in the United States.
This realization sparked the inception of Claravest, a platform with a simple yet powerful mission – to “Make real estate affordable & accessible for all.” Inspired by the idea of providing retail investors with the same level of access to real estate as the top 1% of high-net-worth individuals, Karan and Mananki embarked on a new journey.
The name “Claravest” is a fusion of brilliance and investment. “Clara,” meaning “bright or famous” in Greek, is combined with “vest” from “invest,” representing the infusion of brilliance into investment. Furthermore, it pays homage to their alma mater, Santa Clara University, where their paths first crossed. This name reflects not only their commitment to innovation but also their roots and beginnings.
Empowering Real Estate Investment: Claravest’s Approach:
Claravest is not just an idea; it’s a revolutionary platform that is transforming the way we invest in real estate. Here’s how it works:
- Fractional Ownership: Claravest utilizes fractional ownership, a concept that has existed for years, where multiple investors pool their money to purchase an asset. For each property listed on the platform, a special purpose vehicle (SPV) is created, allowing investors to become shareholders of the SPV. The income generated from the property is then distributed among the investors based on their investment size.
- Co-Investment Confidence: Claravest’s distinctive approach sets them apart: they invest in every property listed on their platform. This commitment demonstrates their unwavering belief in the potential of these properties and aligns their interests with those of individual investors. It builds confidence among users, as it showcases the company’s dedication to shared success. Investors are reassured knowing that Claravest has “skin in the game,” making the journey a true partnership rather than a mere transaction.
- Enhancing Affordability: Claravest offers one of the lowest ticket sizes compared to other fractional ownership platforms, with investments starting at just Rs 1 lakh. This low entry point makes real estate investment more affordable and attainable for a broader audience.
- Global Accessibility through Digital Innovation: Claravest pioneers a completely digital end-to-end investment process, catering to Indian residents and NRIs worldwide. With investors spanning across India, the USA, Canada, UAE, and Qatar, Claravest’s global reach is undeniable. Remarkably, over 55% of their investors are NRIs, a testament to their emergence as a global real estate investment solution. This digital transformation makes real estate investment more convenient and extends its accessibility to a diverse, international investor base.
Fostering Trust and Transparency: Claravest’s Approach
Claravest, like any startup, encountered its fair share of challenges. Initially, one of the significant hurdles was identifying properties with significant appreciation potential. To overcome this, they developed a comprehensive property due diligence process that evaluates factors like location, budget, property type, legality, developer track record, infrastructure development, and resale potential.
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Moreover, they recognized the need to educate customers about the concept, advantages, and risks associated with fractional ownership, as it’s a relatively new concept in India.
Claravest’s commitment to transparency and trust is unwavering. They personally engage with every investor, addressing their questions and concerns. All legal documents, the investment process, property details, developer profiles, and company profiles are shared with investors. They received positive feedback from investors who appreciate this level of transparency. Investors are even encouraged to physically visit properties and refer to real estate data reports to make informed decisions.
Furthermore, Claravest goes the extra mile to instill trust in their offerings. The company itself invests in every property listed on their platform, adding an extra layer of confidence to the properties they showcase. This practice demonstrates Claravest’s deep belief in the opportunities they present, reinforcing their commitment to building a trustworthy and transparent platform for real estate investors.
Charting the Path Forward: Claravest’s Vision
Karan and Mananki have a bold vision for Claravest’s future—positioning it as a leading platform for fractional real estate investment. Their goal is to create an accessible platform for individuals looking to diversify their investments by committing small amounts of capital to multiple high-growth properties, ultimately building their wealth.
Despite Claravest’s relatively recent inception, its founders’ unwavering dedication to innovation, transparency, and inclusivity is already reshaping the real estate investment landscape in India. They are actively seeking external and venture capital funding to bolster Claravest’s capabilities, particularly in property acquisition and cash flow management.
Looking ahead, Claravest’s immediate plans include the expansion of their property portfolio into regions such as Goa, Pune, Hyderabad, and Bangalore.
A Journey Marked by Passion and Balance
Beyond their pivotal roles at Claravest, Karan Shetty and Mananki Parulekar lead enriching lives. Karan finds inspiration behind the lens as an enthusiastic photographer and indulges in culinary exploration as a devoted food lover. Meanwhile, Mananki’s leisure moments are filled with the joy of reading and the tranquility of swimming. Their journey is shaped by various sources of inspiration, including books like “Rich Dad, Poor Dad,” “The Lean Startup,” “Zero to One,” “Dare To Lead,” “The Psychology of Money,” and “Ikigai.”
In closing, Karan and Mananki offer invaluable advice to aspiring entrepreneurs: “follow your passions and embrace uncertainty. When faced with a choice, opt for the path that you would regret not taking on your last day”.
Life, for them, is about seizing opportunities and taking that leap of faith.
Karan Shetty and Mananki Parulekar are not just founders; they are visionaries on a mission to democratize real estate investment. Claravest is more than just a startup; it’s a revolution, and its impact on the real estate landscape is bound to be significant.
