Stanza Living secures $57 mn debt financing from Kotak Mahindra Bank, RBL

Stanza Living, India’s largest tech-enabled managed accommodation company, has secured $57 million (Rs 425 crore) in debt financing led by Kotak Mahindra Bank and RBL Bank, with its existing debt provider Alteria Capital also participating. The proceeds will be utilized to fund capital expenditure for Stanza Living’s current and future projects and accelerate the company's next phase of multi-city expansion. This debt infusion comes on the back of the solid $100 million equity funding raised by Stanza Living mid last year.

Today, with an inventory of more than 75,000 beds, Stanza Living is the managed accommodation provider of choice for students and working professionals migrating to 23 cities across the country. To date, Stanza Living has raised close to $220 million in debt and equity combined.

“This debt raise is a result of our prudent financial management and disciplined planning to stay ahead of short-term market challenges,” said Anindya Dutta, MD, and co-founder, Stanza Living. “It will provide us with ammunition to deliver a higher return on equity and  continue aggressively scaling our operations across the country.”

The substantial debt raise and access to institutional debt capital at such an early stage is an endorsement of Stanza Living’s business model that has been delivering healthy recurring revenues at scale since its launch in 2017. On the back of its cutting-edge technology ecosystem, proven unit economics, and highly-pedigreed team, Stanza Living said it has set high benchmarks in sustainable growth. Trumping the initial slowdown caused by the pandemic, the company has demonstrated strong resilience and has recorded one of the fastest recoveries in consumer demand over the last two quarters. Recently, Stanza Living also launched a new business vertical in the form of campus facility management on the back of strong inbound interest from large academic institutions and corporate houses, as well.

The managed accommodation sector in India has witnessed a multi-fold increase in demand for reliable, high-quality, and safe accommodation options, especially in the wake of the pandemic. With the increasing adoption of hybrid work/study models and the growth of adaptable operators like Stanza Living who are creating comprehensive solutions for diverse consumer segments, the sector continues to attract investor interest. Today, the Stanza Living ecosystem offers a wide range of amenities like chef-curated F&B options, professional housekeeping and laundry and high-speed internet. The other amenities include 24x7 security systems, fun recreation facilities, engaging community programs, convenient mobility services and more – creating a hassle-free living experience for lakhs of migrating students and working professionals.