You are here: Home » PTI Stories » National » News
Business Standard

Stanza Living to invest Rs 400 cr in 2 yrs on expansion of co-living business

Business Finance

Press Trust of India  |  New Delhi 

Co-living operator Stanza Living will invest Rs 400 crore over the next two years on expansion as it sees opportunities in the rental accommodation business despite the coronavirus-triggered slowdown.

Founded in 2017, Stanza Living has so far raised USD 70 million from investors like Falcon Edge Capital, Sequoia Capital, Accel, Matrix Partners and Alteria Capital.

It currently has 200 centres across 14 cities with a total capacity of 55,000 beds, which are being provided in the price range of Rs 4,000-25,000 per bed.

"We are seeing a limited impact on our business. Our revenue has been hit marginally by around 2 per cent. Most of the students have gone back to their home but they are occupying our beds and paying rents," Stanza Living Co-founder and MD Anindya Dutta said.

The company has given some relief to its student members by providing discounts on rentals, he added.

Dutta expressed confidence about the growth potential of the co-living business post COVID-19.

However, at present there is no clarity about when the new session will start in colleges and universities because of the lockdown, he added.

"Education is important. As and when situations normalise, students will come back to study," he said.

Earlier this year, Stanza Living decided to diversify its business and provide rental accommodations for working professionals as well.

Asked about expansion plans, Dutta said: "We are not deferring our expansion plans. We are targeting to add 50,000 beds in 12-18 months."

Around half of the capacity addition would be for student housing and the remaining for working professionals.

On planned investment for expansion, Dutta said the company will be investing around Rs 400 crore over the next two years.

"We have enough capital for our growth plan. We do not need to raise fresh funds," he added.

In a recent study, Corp and Softbank-backed realty portal PropTiger termed the co-living space as "real estate goldmine" and said the segment has the potential to become a USD 93 billion market annually on rising demand from students and professionals.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, May 24 2020. 17:05 IST