The idea of sharing spaces is now extending well beyond commercial real estate and the concept of co-working is proliferating into residential real estate. Co-living spaces are now being seen as a viable business option by many companies. While the system of student housing has been there for quite some in India, the same is being made more formal with professional management.
You are reading: Co-living Space Providers In India Have Massive Expansion Plans
Providing co-living spaces as a business model has already been well established in counties like United Kingdom (which has only 12 million millennial population). It is now that companies are entering co-living business and attempting to disrupt the student-housing space in India that has a millennial population base of 440 million. The co-living industry is in nascent stage in India. The size of the industry is just USD 150 million but can easily reach USD 2 billion by 2022, say real estate experts. Eyeing a share on this huge pie, there are a number of startups that trying to enter the market with differentiated offerings and picking up private equity funding on the way. We look at some of the larger one here:
1 NestAway: This Bengaluru-based company started its co-living operations in 2017 and today has co-living spaces in 12 cities. It has about 14,000 co-living tenants in these 12 cities. It has received USD 94.2 million funding from Epiq Capital, Tiger Global Management, Goldman Sachs and Ratan Tata and others. It does not take a property on rent but only manages it and charges a commission on the rent received from the tenant.
2 OYO Life: OYO, which was largely into hospitality business, forayed into co-living business in 2018 and named it OYO Living. It later changed the name to OYO Life. It has operations in Gurugram Bengaluru, Pune and Noida with 160 properties. OYO has received funding of USD 1.7 billion and is planning massive expansion across India. It has even entered the Japanese co-living market with a tie up with Yahoo! Japan.
3 Stanza Living: Stanza Living focuses only on students, unlike other co-living space providers. It has raised USD 12 million from Sequoia Capital, Matrix Partners India and Accel Partners. It has over 3,000 beds in Delhi and Noida, Bengaluru, Coimbatore, Ahmedabad and Hyderabad and plans to expand to other cities that have good student base.
4 Zolostays: Bengaluru-based Zolo has expanded really fast and has presence in 10 cities-Mumbai, Delhi, Noida, Bengaluru, Coimbatore, Kota, Pune, Chennai, Gurugram and Hyderabad. It has about 20,000 beds under operations and plans to have 50,000 beds under operation by the end of 2019. The company has secured funding to the tune of USD 35 million from Nexus Venture Partners, IDFC Alternatives and Mirae Asset.
5 Colive: This Bengaluru-based company has so far raised USD 12 million from real estate company Salarpuria Sattva Group, Ncubate Capital Partners, and others. It has occupancy levels of 85 percent. The company plans to have 1 lakh beds under operation in three years.
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