Coliving Startup Isthara’s FY23 Loss Surges 54% To INR 30.5 Cr

Coliving startup Isthara reported a 54% increase in its net loss to INR 30.5 Cr in the financial year 2022-23 (FY23) from INR 19.8 Cr in FY22 on higher cash burn because of growth in its business.

Founded in 2017 by Gilbert James and Vijayan Krishna Kumar, Isthara offers coliving spaces, smart food courts, and cafeteria services to working professionals and students. It claims to manage over 24K beds across Hyderabad, Bengaluru, Delhi NCR, and Chennai.

The coliving startup’s operating revenue zoomed 161% to INR 67.5 Cr during the year under review from INR 25.8 Cr in the previous fiscal year, as per its filing with the Ministry of Corporate Affairs.

Isthara earns revenue by providing coliving, facility management, catering and food court management services.

At INR 41 Cr, the startup earned the biggest revenue by providing student housing and catering services in FY23. Coliving generated revenue of over INR 23 Cr, while revenue from food court management stood at INR 2.2 Cr during the year under review.

The startup said it is looking to double the turnover of the food court segment in FY24, with a particular focus on retail and wayside amenities, to increase its revenue.

Including other income, Isthara’s total revenue grew 166% to INR 69.6 Cr in FY23 from INR 26.2 Cr in the previous fiscal year.

Breaking Down Ishthara’s Expenses

Isthara’s total expenditure jumped 119% to INR 100.2 Cr in FY23 from INR 45.6 Cr in the previous year.

Employee Benefit Expenses: The startup’s employee costs jumped 129% to INR 25.4 Cr in the reported period from INR 11.1 Cr in FY22.

Rent & Canteen Catering Expenses: These were two major expenses for Isthara. Rent expenditure surged 278% to INR 15.5 Cr in FY23 from INR 4.1 Cr in the previous fiscal year. On the other hand, its canteen catering expenses rose 164% to INR 27.8 Cr from INR 10.5 Cr in FY22.

Isthara has raised a total funding of nearly $21 Mn to date and counts the likes of JM Financial India Fund II among its investors. The startup last raised $10 Mn (INR 81 Cr) in its pre-Series B funding round, led by Dubai-based Eagle Investments, in 2022.

Isthara competes with the likes of Housr, Stanza Living, and Zolo Stay.

Stanza Living’s consolidated net loss surged 1.8X to INR 417.4 Cr in FY22 from INR 226.33 Cr in the previous fiscal year. Its operating revenue jumped 2.9X to INR 115.08 Cr from INR 39.77 Cr in FY21.