Room Soom Technologies, the parent operator of an eponymous student housing and co-living platform, has raised an undisclosed amount in a bridge round of funding from Mumbai Angels Network.
RoomSoom's immediate goals are to increase the number of beds from 3,000 to 5,000 and expand its reach from seven to 10 cities, a company spokesperson told TechCircle.
"With these funds, we plan to tap every market, reach every individual, and identify every need. So that we can provide them with a solution they will not find anywhere else,” Nitin Agrawal, co-founder at RoomSoom said in a statement on Thursday.
Noida-headquartered RoomSoom was founded in 2016 by Agrawal and Garima Agrawal.
Nitin Agrawal is a telecom engineer by profession, who has worked with various operators such as BPL, Hutch, Tata Indicom and telecom infrastructure companies Nortel, Nokia in India. Garima Agrawal is from the hospitality sector, with more than ten years of experience.
The startup’s business operates with a specialised focus towards co-living accommodations for the youth. The company attributes its growth to an ability to identify the needs of a “young and demanding population, and provide quick solutions that they never thought existed.”
A crowded sector in India’s startup ecosystem, other online-based student accommodation platforms include the likes of Stanza Living, Oxfordcaps, Zolostays, Nestaway, Placio, StayAbode, and Colive. Cities such as Bengaluru have multiple city-specific accommodation options that do not necessarily operate as large scale nationwide platforms.
“From an investor's perspective RoomSoom had the right ingredients; a scalable and profitable business model, experienced and innovative management, and a resilient business that can recover quickly from the pandemic impact,” Anshuman Ranjan, a Mumbai Angels investor said in the statement.
RoomSoom is Mumbai Angel Network’s fifth investment in the real estate sector. Its previous investment in the broader sector include Azuro, Falconbrick, Screampoint and Zocalo.
The deal also marks Mumbai Angel Network’s fifth investment disclosure in 2020 -- the other four were also made in the month of April. The deals include Ahmedabad-based digital media startup NewsReach, Pune-based supply chain technology startup Aker Foods Agrotech, Bengaluru-based algorithmic trading solutions provider AsknBid and Panji-based eco-friendly travel tourism platform BLive.
Started in 2006, Mumbai Angels Network consists of over 450 members, across nine chapters -- Mumbai, Delhi, Bangalore, Kolkata, Hyderabad, Goa, Pune, Jaipur and Chennai. It has over 135 investments in its portfolio, made over 30 exits, having spent over Rs 150 crores in total till date.