Akhil Sikri Steps Down As Zolostays Cofounder To Launch New Venture

Akhil Sikri, cofounder of Zolostays, has stepped away from his operational role at the coliving startup to pursue a new entrepreneurial venture, the specifics of which remain undisclosed. 

As per his LinkedIn profile, Sikri transitioned out of his active role at ZoloStays in March. However, he will continue to retain his position on the company’s board of directors. His LinkedIn bio now lists him as the cofounder of an upcoming, unnamed project.

Commenting on his exit, Sikri said, “While I am stepping down from my operational roles, I am excited about the new entrepreneurial journey exploring opportunities in fintech. I remain deeply committed to Zolostays’ vision and will continue to contribute as a co-founder and non-executive director.”

Launched in 2015 by Akhil Sikri, Isha Choudhry, Nikhil Sikri and Sneha Choudhry, Zolostays offers affordable paying-guest accommodations, service apartments and independent flats to students and working professionals via its AI-powered app. 

Speaking on Akhil Sikri’s decision to step away from the day-to-day operations, cofounder Nikhil Sikri said, “While we bid adieu to his operational roles, I am thrilled that Akhil will remain an essential part of our company as a cofounder and non-executive director. His wisdom and counsel will continue to guide us towards even greater achievements.”

Since its inception, the startup has raised a total of $98 Mn in funding from the likes of Investcorp, Nexus Ventures Partners, Mirae Assets, Trifecta Capital and others.

According to Tofler, the startup reported INR 42.5 Cr in operating revenue in FY22, a minimal rise from INR 41.18 Cr in FY21. The company, though, managed to bring down its losses considerably. It reported a loss of INR 69 Cr in FY22, compared to INR 90 Cr in FY21.

Zolostays finds its competition in entities such as Isthara and Stanza Living, among others.

The hospitality industry faced significant setbacks during the pandemic, with challenges intensifying due to the subsequent funding freeze. Yet, there are signs of gradual recovery on the horizon. 

Last year, Isthara secured $10 Mn to increase its bed count and double it to 50,000 beds in coliving and student accommodation segments by 2025. 

Meanwhile, Stanza Living reported a 1.8X jump in its consolidated net loss to INR 417.4 Cr in FY22. However, its revenue from operations jumped 2.9X to INR 115.08 Cr from INR 39.77 Cr in FY21.

A similar trend was noticed in the core hospitality sector also. OYO posted a loss of INR 333 Cr during Q2 FY23, but this was a decline of nearly 20% from INR 414 Cr in Q1 FY23. The hospitality major also reported a loss in the first half of FY23 but trimmed it by 22.2% to INR 747.1 Cr against INR 959.8 Cr during the corresponding period last fiscal year.

Further, this year, OYO founder Ritesh Agarwal said that the company is on the track to report its first ever profitable quarter in Q2 of the financial year 2023-24 (FY24), with a projected profit of INR 16 Cr in July-September 2023. 

The development was first reported by ET.