Mumbai based Zolo Stays Property Solutions, which operates an eponymous co-living brand, has scooped up $56 million in a Series C round of funding from returning investors Investcorp, venture capital firm Nexus Venture Partners, Mirae Assets and others.
Venture debt firm Trifecta Capital also participated in the round.
Zolo has so far raised $90 million. It will use the fresh funds to expand technology and inventory, according to a statement.
The company had last raised $7 million in venture debt from Trifecta Capital in December 2019 after picking $30 million in a Series B round in January 2019 from private equity firm IDFC alternatives as well as Mirae Assets, Investcorp, Nexus Venture Partners and others.
“We are creating a personalized living experience keeping the customer at the core. It allows them to personalize the way they live and work, all on their terms. We partner with them as they rewrite their own story and re-imagine life,” Nikhil Sikri, CEO of Zolo said in the statement.
Founded in 2015 by Sikri, Akhil Sikri and Sneha Choudhry, Zolo offers shared and private rooms for students and young professionals. Currently, the firm has 500 properties spread across 10 cities, with an equal number of properties planned as part of its expansion.
“With scale, Zolo’ value proposition to both the customer and the asset owner would substantially increase due to the network effect - thus allowing Zolo to win a disproportionate share of the $20bn managed living services market,” Sameer Brij Verma, managing director at Nexus Venture Partners said.
As part of its expansion plans, Zolo is in talks with developers for creating co-living campuses with a projected capacity of 5 million square feet. The brand will also launch its premium offering, Zolo Red Carpet which will include facilities like wellness studios, in-house cafes, workspaces and concierge service in a bundled offering.
Co-living spaces are moving away from minimum guarantee agreements with house-owners, banking on long-lease agreements for custom-built properties. In 2019, Goldman Sachs backed Nestaway launched Hello World to enter the segment. It also acquired Stay Abode in March this year to further its co-living offering.
Equity International-backed Stanza Living also announced its foray into serving working professionals with its new offering in March.