Bengaluru-based co-living space provider CoLive has raised $1.8 Mn (INR12 Cr) in a round of funding led by Ncubate Capital Partners, the private investment arm of SAR Family Office.
The startup plans to utilise the recently raised funding to expand its presence and work towards its goal of offering one million managed homes in 25 cities across India. It will also use the funds to ramp up its technology infrastructure and enhance its talent pool.
Commenting on the fundraising, Suresh Rangarajan, Founder and CEO, CoLive said, “SAR Family Office’s investment in CoLive is an opportunity for us to grow further and help solve the urban living conundrum in India by providing one million living spaces. With a strong pipeline of inventory, we are firmly on track to reach our 10,000 beds target in the next couple of quarters.”
With the latest round of funding, the company has raised a total of $2.7 (INR 18 Cr) funding since its inception in 2016. Earlier in September 2016, CoLive also raised $1 Mn in Seed funding from a family office. Whose name remained undisclosed.
CoLive is a technology-driven shared living space providing company, offering branded and serviced homes that are conveniently located near educational institutions and major business hubs. The startup at present operates with 75 properties in Bengaluru and has 3,000 beds as part of its inventory.
The co-living space in India has been sprouting up with startups like StayAbode, Zocalo, Stanza Living among others. As the young students and working professionals move out of their homes to the bigger cities, and with a considerable rise in standard of living, the opportunity is currently ripe for the startups in this space.
As shared by CoLive, property consulting firm JLL, has revealed that there is an acute shortage of properties in the student housing market – approximately more than six million beds. This shortage is likely to reach 10 Mn in the next three years due to increased migration of students for higher education and professionals for employment.
As Rakesh Malhotra, Managing Partner, Ncubate Capital Partners, said, “With this investment, I am looking forward to the exponential growth that CoLive is poised to achieve in the next few years. With more people renting than buying, CoLive has a massive potential across the market.”
Apart from CoLive, other startups in this space have also garnered investor’s attention recently. For instance, in November 2017, New Delhi-based student accommodation platform Stanza Living raised $2 Mn in funding from investment firms Matrix Partners and California-headquartered Accel Partners.
Also, in August 2017, StayAbode raised an undisclosed amount of funding from Incubate Fund. Prior to that in May 2017, reports also surfaced that Bengaluru-based home rental startup NestAway acquired residential rental management company Zenify, for an undisclosed amount.
In the market with huge opportunity as well as fierce competition, it is to be seen what the co-living space providing startup, CoLive achieves with the latest round of funding.