Bangalore-based ZoloStays, a real estate portal, has reportedly raised Rs 26 Cr. in its Series A round of funding led by Nexus Venture Partners. This round also included venture debt of Rs 4.5 Cr. from Innoven Capital.
According to the documents filed by the company with the registrar of companies (RoC), Nexus has been allotted 4,153 series-A preference shares at a premium of Rs 48,300 with a second investor, Nestavera Investment Advisory Solutions, pumping in an additional Rs 1.67 Cr.
Speaking on the fundraising, Sikri said, the raised capital will be used to grow aggressively, to reach over 12,000 beds, up from our current 5,000 beds, and also expand to Chennai and the National Capital Region by the end of this year.
Founded in 2015 by Dr. Nikhil Sikri and Akhil Sikri, ZoloStays is an Android app-based technology platform which helps users find affordable quality accommodation at places near large office clusters in Tier-I cities, for as little as Rs. 5K/month. Besides, the company also offers other facilities such as daily meals, wi-fi, housekeeping and more.
ZoloStays signs service agreements with builders for 5-15 years, and for 11 months with potential residents, and undertakes the end to-end management of the properties. Currently, ZoloStays has about 24 properties in its portfolio and has signed up an additional 40.
“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,“ said Sameer Brij Verma, director, Nexus Venture Partners.
The business model is similar to WeLive, the apartment rental business launched by coworking unicorn WeWork last year.