The investment comes after a strategic round led by Incubate Fund and a group of investors from the real estate industry, including Legacy Global Projects MD Sanjay Shenoy and Mridul Upreti (ex Joint MD JLL India) last year.
The funds are being used to scale the business and create more supply as demand increases. StayAbode currently has 950 beds live and is operating at 97% occupancy at 15 properties across Bengaluru and has plans to expand to other cities in due course.
Twelve more buildings are due to be launched in Bangalore as the company goes deeper into the micro markets. It continues to be operationally profitable.
Co-living is gradually becoming the preferred way of living for several reasons -- it saves money, it is more fulfilling than living alone, people want to make/have friends to share common interests with and it’s easier to move in when shifting to a new city.
Viral Chhajer, Co-founder & CEO, StayAbode, said, “We’re excited to partner with investors that believe that co-living is the future of residential real-estate for millennials and see this as an opportunity to create a new asset class in real estate investing. Each of our investors brings on-board a unique perspective to our vision of redefining the way millennials live in our cities. Capital raised now will be primarily used to make key hires across verticals and set the base for our expansion into our cities across the country."
Tomoya Ogawa, CFO at Akatsuki, Inc. and Managing Director of AET Fund, said, “We’re thrilled to partner with Viral and his team to support the growth of StayAbode. Co-living space is not just financially attractive, but will also enable millennials to have a more fulfilling and delightful living experience through bonding and social activities. We look forward to boosting this delight to the next level by offering our expertise in the entertainment-related field”.
Angel investor Anupam Mittal, added, “Given land prices in the country, co-living is perhaps the only solution to India’s affordable housing woes. Co-living allows millennials to buy into a meaningful lifestyle without the hassle that comes with renting and without compromising on location and affordability in case of buying. I am excited to back StayAbode with its excellent execution track record."