Shojin, an FCA-regulated online real estate investment platform, has raised its first tranche of £3m via a global pool of investors at a company valuation of £49m. Having proven substantial growth in the past 12 months, Shojin has just launched the next tranche of funding to raise a further £2m at a £55m valuation.
This raise sits alongside a £5m underwriting facility provided by a London-based family office with a provision to increase it to £10m, which effectively guarantees funding for mid-market real estate investment opportunities before they go live to investors.
Having focused exclusively on the UK property market until recently closing its first non-UK real estate investment in Malaysia, the raise will be used to grow Shojin’s operations team with new hires in deal origination, marketing, technology, and risk management as it ramps up global expansion plans. The additional £2m corporate raise will primarily be invested into the company’s data-driven marketing campaigns as Shojin sets its sights on new investment opportunities across the globe.
Shojin operates in the online real estate investment market forecast to grow from $15bn in 2021 to $800bn by 2027. The company was created to make investing into mid-market property developments simple and affordable through co-investment while providing developers with a consistent and trusted source of junior finance. Typically, such institutional-grade property deals are only accessible to the top 1% of the world’s population, who control 45% of global wealth. Shojin enables intelligent investors from over 40 countries to access this market from as little as £5,000. Shojin’s platform is designed to make property investment accessible, simple and affordable. Initially targeting working professionals, the platform empowers fractional investing in real estate developments, primarily focusing on residential, PRS (private rented sector), senior, and student accommodation projects. The company invests its own capital into every project and shares profits at the end, creating a perfect alignment of interest with investors. To date, Shojin has raised over £38m across 30 projects.
Jatin Ondhia, CEO, Shojin Property Partners, said: “As a business, we’re at a very exciting inflection point. Having made our first investment outside of the UK and with substantial resources in place, we’re ready to begin our scaleup journey. One of the challenges ‘concept’ startups face in the UK is that investors still undervalue high-potential businesses, insisting on profitability which in turn can stunt growth potential. Thankfully, Shojin is already a profitable business which is why we have made the decision to hire for growth while allocating £1.7m of the corporate raise to direct response digital marketing as we continue our growth.”