Indian co-living startup Zolo raises $30m Series B led by IDFC Alternatives, Mirae Asset, Nexus

REUTERS/Dado Ruvic

Bengaluru-based co-living startup Zolo has raised $30 million in a funding round led by IDFC Alternatives, Mirae Asset and Nexus Venture Partners.

According to an official statement, the startup plans to use this latest funding for expansion into other cities as well as investing in the student accommodation segment. The company also plans to use the Series B funding to extend the technology division and venture into new technologies like IoT to enhance its service offerings to customers.

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.

Zolo had last raised $5 million in its Series A funding from Nexus Ventures Partners in December 2016.

Since its last funding, Zolo claims to have grown 800 per cent from 2,000 live beds to 16,000 live beds with 157 properties across six cities currently.  It is aiming to reach 50,000 beds by the end of the year.

Investment Bank IndigoEdge was the exclusive banker for the transaction.

“Zolo is addressing a large and real problem of providing quality affordable living solutions for young professionals in urban India. We are delighted to support them in their vision to provide end-to-end, convenient housing solutions to these students/individuals alike and build a successful community with strong social connect,” said Ashish Dave, Head Venture Investments at Mirae Asset Global Investments (India).

Co-living alternatives are witnessing a surge in demand in the country with a number of students and young professionals opting for this mode of living.

Recently, home rental startup NestAway Technologies was said to be in initial talks to raise $100 million, after raising $51 million in a Series D round from a clutch of investors, including investment bank Goldman Sachs Group and UC-RNT Fund in February 2018.

Also, in September last year, Gurgaon-based student housing startup Stanza Living raised $10 million in a Series A round led by venture capital firm Sequoia Capital. In January 2018, another Gurgaon-based home rental marketplace ZiffyHomes had picked up angel funding in its seed round.

Late last year, SoftBank Group-backed budget hospitality chain Oyo had also announced the launch of its home rental vertical Oyo Living.

Also Read:

India: Student housing startup Stanza Living raises $10m led by Sequoia

India: Nexus Venture leads $5m funding round in Zolo Stays

India: Home rental startup NestAway eyes $100m funding

 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.