StayAbode, a startup that is building co-living spaces, has raised an undisclosed amount of funding from Incubate Fund. Apart from this, a group of investors from the real estate industry including Legacy Global Projects MD Sanjay Shenoy and Mridul Upreti (ex-Joint MD JLL India), as well as some existing investors participated in the round.
The startup will use the funds to scale the business by strengthening its technology and team. The startup currently offers over 260 units spread over 5 properties across Bengaluru.
Bengaluru-headquartered StayAbode was founded in 2016 by Viral Chhajer, Varun Bhalla, and Devashish Dalmiya. The founders were earlier engaged in marketing, technology and finance. They have previously worked at startups like Runnr, Treebo Hotels and Roadhouse Hostels.
StayAbode leverages technology, design, service and brand to build co-living spaces for the rental residential real estate market at scale.
Sanjay Shenoy, MD of Legacy Global Projects added, “60% of the migrant population in Bengaluru looks for shared accommodation. Traditional, long stay PGs are unable to fulfil this demand. The services offered by them do not match up to the expectations of these customers. The spaces are cramped without basic facilities in place. This is exactly the opportunity StayAbode is capitalising on. This generation has an appetite for experiential living. Their focus is less on accumulating fixed assets and more on a holistic living experience, where resources are shared, connections are made and ideas flourish.”
The co-living spaces provided by StayAbode’s co-living spaces combines small, private spaces like fully furnished 1 or 2 BHKs with communal areas, common rooms, games areas, music and art corners. Users do not have to manage household responsibilities like payment of utility bills, housekeeping, laundry etc. The company claims that for property owners and real estate developers it facilitates higher yield on properties.
Nao Murakami, General Partner at Incubate Fund India said, “Millennials want to live in flexible, hassle-free and fully-managed homes and as their population in Tier I metros in India is growing, there is a huge gap in demand and supply. StayAbode’s product-market-fit and model in the co-living spaces is strong.”
Incubate Fund is a Seed-focussed VC fund based in Tokyo, Singapore and Bengaluru, India. It has invested in more than 200 startups in Japan and other parts of Asia. In 2016, the VC fund set up an India-focussed fund. It has so far, made six investments in India.
Earlier in March 2017, StayAbode had raised an undisclosed amount of angel funding from a consortium of investors led by Ishan Manaktala and Angie Mahtaney. Gaurav Bhalotia (Ex-VP Engineering, Flipkart), Vishal Lulla (CEO, Vishal Exports) and a group of investors from LetsVenture also participated in the round.
In May 2017, Bengaluru-based home rental startup NestAway acquired residential rental management company Zenify, run by parent company City Synapse Information Pvt. Ltd for an undisclosed amount. With the recent round of funding, StayAbode will try to boost its position against competitors like CoHo, Homigo, Zocalo, NoBroker, etc., that provide rental accommodations.