The funding round also includes venture debt from Innoven Capital.
The startup plans to use the latest capital raised to increase its reach from 5,000 locked-in beds to over 12,000 beds and expand to Chennai and NCR by the end of this year, the company said, in a release.
Founded in 2015, Zolo offers branded paying guest accommodation with daily meals, housekeeping, Wi-Fi, through an integrated app based technology platform at locations near large office clusters in tier 1 cities.
“We believe there is a large market gap in the managed affordable living space targeted at students and young professionals moving into larger cities for employment and education opportunities. Zolo’s first principles approach to building a scalable cost-effective execution engine managed by their strong technology platform has allowed them to emerge as a leader in the market in a short duration,” said Sameer Brij Verma of Nexus Venture Partners.
Zolo further said it also has a healthy pipeline of “built-to-suit” managed accommodation properties under development where land owners are partnering with Zolo to manage them on an end-to-end basis and share profits.
Nexus Venture Partners is an early-stage investor with investment size ranging from $500,000 to $10 million in early-growth stage companies in the US and India. It has invested in over 70 companies so far including Snapdeal, Runnr, Craftsvilla, Housing and Dhruva.
It recently put in $7 million as follow on investment in Bengaluru- and Austin-based startup Postman, a platform that helps developers build, test, document, and share their APIs at a faster pace.