This is Tata's eighth personal investment in a start-up in 2016 so far. He has invested in over 20 start-ups.
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NestAway turns unbranded, unfurnished houses into fully furnished and managed apartments and provides them at affordable prices to verified tenants, said the statement by IDG Ventures India, which is an investor in the company.
So far, the start-up has provided quality rental homes to about 5,000 tenants across six cities.
Until recently, NestAway counted working professionals who are single among its target audience, but now it has also forayed into the family segment.
NestAway was founded by Amarendra Sahu, Smruti Parida, Deepak Dhar and Jitendra Jagadev in January 2015.
The company has raised over $13 million in capital in two rounds from marquee investors, including IDG Ventures India, Tiger Global, Flipkart and entrepreneur Naveen Tewari.