Settl’s Tenants Allege Delay In Security Deposit Refunds: Report

Coliving PG startup Settl has reportedly been alleged of delaying refund of security deposits to multiple former tenants in Bengaluru, Hyderabad, Gurugram, and Chennai.

As per TOI report, some of the cases have been dragging since January 2024, where the amounts owed are said to be as high as INR 80,000, in some cases. There have been about 50 refund requests.

Inc42 has reached out to Settl cofounder Bharath Bhaskar for comments on the development. The story will be updated based on his response.

Founded in 2020 by former Nestaway executives Bhaskar, Abhishek Tripathi, and Ashok Reddy, Settl is coliving accommodation provider in the form of PGs, and furnished houses in four metro cities across the country. The company has raised more than $1.7 Mn in funding, so far.

“The company keeps telling us that they will pay on the 10th of a month but never honour these promises. The customer care has blocked some of us,” the report citied a source as saying.

Based on the report, the startup has responded to the worried tenants that the delays were due to internal discrepancies or banking issues.

Settl shares the market with brands such as Stanzaliving, Zolostays, Isthara, among others.

It is to note that the hospitality industry faced significant setbacks during the pandemic, with challenges intensifying due to the subsequent funding freeze. 

However, the sector did recover along with other industries in the market post Covid.

For instance, in May last year, Gurugram-based Stanza Living raised INR 100 Cr as part of its ongoing funding round, and the raise was a part of its larger commitment to raise INR 200 Cr backed by its existing investors, as per reports.