JM Financial India Fund II invested in the $5.7 Mn round
The funds will be used to expand in existing markets
Isthara manages about 3K beds across 29 properties
Coimbatore-based coliving startup Isthara Parks has raised $5.7 Mn (INR 40 Cr) funding from JM Financial India Fund II.
The startup said it would use funding to expand its operations in existing markets Hyderabad, Bengaluru and Delhi NCR initially, as well as in other key cities in Asia.
Founded in 2017 by Gilbert James Laurduraj, Isthara provides fully-furnished shared-living accommodation for working professionals and students, along with a host of amenities such as daily meals, Wi-Fi connectivity, gym facilities, laundry and housekeeping services, etc.
The company also hosts community-focussed events on a regular basis. It claims to manage about 3K beds across 29 properties in Hyderabad, Bengaluru and Delhi NCR.
Darius Pandole, managing director and CEO, PE and Equity AIFs, Isthara said, “Partnering with entrepreneurs and management teams with the vision to build scalable and sustainable businesses has been the key focus of JM Financial Private Equity. Isthara has been growing consistently since it was founded and we strongly believe in the management’s disciplined approach.”
JM Financial India Fund II is a sector-agnostic growth-capital private equity fund set up by JM Financial. It invests in high-growth, small to mid-market companies in financial services, consumer services, IT / ITeS, infrastructure services and manufacturing sectors.
Here’s a look at recent investments in the segment:
- March 2019: StayAbode received an undisclosed amount as an add-on to the Pre-Series A funding from Voyage Group, Akatsuki and Incubate Fund.
- March 2019: New Delhi-based Stanza Living raised $4.4 Mn in venture debt from Alteria Capital.
- March 2019: Singapore-headquartered Oxfordcaps raised $8 Mn funding led by Times Internet with participation from existing investors Kalaari Capital and Silicon Valley-based 500 Startups.
- April 2019: Bengaluru-based Colive raised $9.2 Mn (INR 63 Cr) in its Series A funding round led by the real estate company Salarpuria Sattva Group.
- April 2019: Gurugram-based coliving startup Housr raised seed funding round of an undisclosed amount from marquee real estate players.
However, at present, the absconded founders of Homigo with an alleged fraud of about INR 20 Cr have raised concerns around trust in the coliving sector.
A recent PropTiger report has noted that coliving segment has the potential to grow into a $93 Bn market in India. The report estimated an untapped demand of approximately 46.3 Mn beds in India, of which 8.9 Mn beds are required for student housing.
By 2022, India’s coliving industry is expected to be 20 times bigger than it was in 2018 with the shared-living market valued at $120 Mn (INR 845 Cr), as per RedSeer Consulting.
