Fraccional Targets Foreign Investors as Expansion Reaches the US, Paraguay, and Uruguay

After just over two years of operation, Chilean fintech Fraccional has expanded its real estate investment portfolio beyond its home market to include properties in the United States, Paraguay, and Uruguay. Now, the company is entering a new phase, looking to accommodate investors outside of Chile by developing a legal and operational framework to support international participation.

Speaking to Funds Society, co-founder and CEO Tomas Charles outlined the firm’s next steps, highlighting the creation of a new investment vehicle that would allow foreign investors to participate in the platform. The current corporate structure, a sociedad por acciones (SpA), restricts shareholder access to Chilean nationals. Charles said the team is actively exploring more flexible options to overcome that limitation, with the aim of launching an international version of the platform by the end of 2025.

“We need a structure that is not only easy to trade but also allows us to distinguish between different types of risk across projects,” said Charles. While the new vehicle may remain domiciled in Chile for operational reasons, the team is preparing to launch a dedicated commercial effort in 2026 to bring in investors from other jurisdictions.

Expanding asset availability across borders

Fraccional’s current asset offering has grown steadily since its public launch at the beginning of 2023. What began as a platform focused solely on Chilean properties has since incorporated investments in markets such as Miami, Asuncion, and Montevideo. The fintech enables investors to participate in a variety of real estate projects—rental apartments, parking lots, rural land—starting at just 100,000 Chilean pesos (approximately USD 106).

According to Charles, the platform is designed to replicate a stock exchange model, but exclusively for real estate opportunities. The ultimate goal is to build liquidity and scale in a sector traditionally reserved for large-scale investors.

Scale, he noted, has been key to the company’s growth. Within the first three months, the platform surpassed 1,000 users and now boasts over 25,000 active investors. This increasing user base allows for quicker capital raises, broader project selection, and a more active secondary market where investors can trade their shares before a project is finalized.

Spain and UAE on the radar

Fraccional is currently evaluating investment opportunities in Spain and the United Arab Emirates, both considered promising markets with experienced real estate developers and project managers. According to Charles, any market with viable, fractionalized projects and credible partners is a potential candidate for expansion.

While the company doesn’t plan to open physical offices abroad, regulatory compliance remains an essential step. That includes working with local authorities, securing the necessary licenses, and building localized marketing capabilities.

Charles emphasized that the platform will spend the remainder of 2025 finalizing its investment structure and identifying strategic markets to target for 2026.

How the investment model works

Fraccional connects experienced real estate project managers with retail investors. Project managers submit information on investment opportunities, which are then reviewed against the platform’s reporting standards. Once approved, the platform facilitates capital raising via an escrow account.

If a project reaches its funding target, investors receive shares in a project-specific SpA, and their contributions become equity in that entity. If the funding goal isn’t met, the capital is returned in full.

Shares are typically priced so that one unit equals one peso or one dollar, depending on the project’s location and scope. Though SpAs can legally have up to 2,000 shareholders, Fraccional generally caps participation at around 500 to maintain operational efficiency.

The platform also offers a secondary market for early exits and an investment tracking tool for monitoring project progress and financial performance.

Despite a growing trend in the sector to use blockchain for real estate tokenization, Fraccional has opted out of that model. Charles noted that while blockchain is innovative, its risks outweigh the modest returns typical of real estate income streams. “When your yield is 3% to 5% from rental income, you don’t want to introduce unnecessary technological risk,” he said, emphasizing the firm’s preference for traditional registration methods through national real estate and tax systems.

As Fraccional prepares to open its platform to global investors, the company is focused on creating a stable and scalable model that balances accessibility with risk management. The expansion into Spain and the UAE, combined with a new investment structure, positions the fintech to take its next leap in 2026.