Property investment platform Shojin has closed a £3m funding round from global investors at a valuation of £49m.
Shojin’s will use the fresh capital to grow its operations team, hire across deal origination, marketing, technology and risk management. This will help aid Shojin’s ambitions for global expansion, following its first non-UK real estate investment in Malaysia.
London-based Shojin is an FCA-regulated online property investment platform that gives individuals access to institutional real estate investment opportunities in the UK.
“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,” said Jatin Ondhia, CEO, Shojin Property Partners.
Alongside the raise, Shojin has been provided a £5m underwriting facility, with a provision to increase it to £10m by a London-based family office. For Shojin, this means funding will be guaranteed for any of its mid-market real estate investments before they go to investors.
Shojin is now at another funding round looking to raise £2m at a £55m valuation, which will be mostly invested in data-driven marketing campaigns.
“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,” added Ondhia.
According to Shojin the online real estate investment market is expected to grow from $15bn in 2021 to $800bn by 2027. To date, Shojin has raised over £38m across 30 projects.
Proptech venture capital firm Pi Labs recently raised $90m (£68.7m) for its latest fund to invest in real estate technology startups globally.
UK proptech investment hit a record of £1.6bn in 2021, more than quadrupling since 2020.