Mumbai
:
Ten years after putting its early wager on Zolostays, Nexus Enterprise Companions is making ready to exit the co-living agency, in line with three folks within the know. The startup, now valued at about ₹1,500–1,600 crore, has trimmed its non-core operations and is courting new traders, because it appears to be like to scale within the aggressive premium co-living house.
“Nexus has initiated talks with a number of VC (enterprise capital) funds and a few strategics. It’s trying to promote its whole 27% stake,” one of many individuals cited above mentioned.
The Bengaluru-based startup, which has raised about $113 million so removed from a clutch of traders via debt and fairness, has been struggling to develop past its core markets. The corporate had not too long ago offered its pupil housing enterprise that manages lodging for faculties and universities to Good Host Areas for $12.5 million.
Zolostays mentioned this sale was part of the technique to give attention to its core enterprise of managing co-living areas. At the moment, the corporate had mentioned that the proceeds from the sale will permit it to focus on its predominant enterprise actions, enhance money movement, strengthen general monetary well being, and convey larger operational efficiencies.
As per information out there with Tracxn, Zolostays’ fundraising features a $56 million Collection C spherical led by Investcorp and Mirae Asset. The corporate had additionally raised about $30 million in 2019 from traders led by Idfc Alternate options, Mirae Asset and Nexus Enterprise. Nexus VP has been one in every of Zolostays’ largest backers, having invested within the firm since 2015.
“Nexus has stayed its course within the firm and is now trying to promote,” mentioned the second individual aware of the event.
When contacted, a Zolostays spokesperson denied there was any deal imminent. A Nexus Enterprise spokesperson didn’t reply to emailed queries.
Based in 2015 by Nikhil Sikri, Akhil Sikri and Sneha Choudhry, Zolostays had began out with a $1 million funding from Nexus Enterprise. Akhil Sikri left the corporate in 2023, and is now the chief know-how officer at Apsona, a SaaS agency.
A 3rd individual within the know pegged the corporate’s valuation at ₹1,500-1,600 crore.
Zolostays offers premium co-living areas to college students, professionals and organizations, and it operates in additional than 10 cities.
As per Entrackr, Zolostays recorded an 11.4% year-on-year (y-o-y) development in income to ₹204.4 crore throughout FY24, whereas its losses narrowed by 17.4% to ₹57 crore. The corporate is but to element its financials for the final fiscal.
In accordance with a Nasscom weblog printed in Might, the demand for co-living areas and inventory for 2025 are estimated at 6.6 million and 0.3 million beds, respectively. Penetration for the sector is probably going to enhance from 5% in 2025 to over 10% by 2030, it mentioned.
“India’s co-living market is on an upward development trajectory, with demand rebounding strongly lately and operators gearing up for enlargement throughout Tier-I cities and choose Tier-II cities,” the weblog mentioned. “The resurgence of the sector is being fueled by speedy urbanization and migration to cities, particularly amongst college students and younger professionals who proceed to hunt versatile, comparatively inexpensive, community-driven, and hassle-free housing choices,” it mentioned.