Kalaari Capital-backed student housing startup Oxfordcaps on Thursday announced a joint venture with private equity firm Cerestra Advisors Pvt. Ltd to acquire, operate, and develop student housing infrastructure.
The joint venture, which will operate under the brand name CUIB, will invest $125 million to acquire beds across India. CUIB targets to secure 25,000 beds in six to eight months, per a statement.
Annu Talreja, CEO and Co-Founder, Oxfordcaps, said: “Joining forces with Cerestra will give both of us an edge to emerge as the most efficient entity to provide educational institutions a one-stop-shop for acquisition, operation, and development of on-campus and near-campus student accommodation.”
Oxfordcaps, which also counts Times Internet and 500 Startups among its backers, manages over 50 hostels in eight cities across India. These include multiple on-campus and near-campus facilities for universities such as AISSMS, SVIET, Presidency University, RV College, Ahmedabad University, IFIMB and Lexicon Management Institute.
The startup raised $8 million in Series A funding from Times Internet, Kalaari Capital, and 500 Startups in March last year.
“We have been on the lookout for like-minded partners who understand operating the student housing space. Cerestra would be providing a holistic solution to educational institutions by giving both liquidity by acquiring the student housing assets, as well as providing a new level of living experience to the students through this JV,” said Cerestra managing partner Jasmeet Chhabra.
In mid-2018, Cerestra announced plans to add on-campus student housing to its portfolio and become a full-service education infrastructure asset owner. After having acquired a 3,000-bed facility at Jain University, it is now eyeing a countrywide presence.