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.