Zolo raises $30 million in Series-B funding

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Published: January 8, 2019 4:00:03 AM

Co-living start-up Zolo announced on Monday that it has raised $30 million in a Series-B round of funding led by IDFC Alternatives, Mirae Asset and Nexus Venture Partners.

Zolo raises million in Series-B funding

Co-living start-up Zolo announced on Monday that it has raised $30 million in a Series-B round of funding led by IDFC Alternatives, Mirae Asset and Nexus Venture Partners.

Zolo had last raised $5 million in Series-A funding from Nexus Ventures Partners in December 2016. In the last two years, the company said it has grown 2,000 live beds to 16,000 live beds with 157 properties currently under Zolo management.

Zolo is targeting 50,000 beds by the end of this year. The company has tied up with numerous building owners, and large developers to acquire supply.

However, Zolo’s competitors have also raised significant funding in recent times. The Bengaluru-based start-up competes with a host of other ventures with slightly different business models but similar target audience.

Nestaway Technologies, one of Zolo’s prime competitors, has the backing of Tiger Global, IDG Ventures Yuri Milner, among others. It had raised $51 million in March last year from Goldman Sachs and other investors.

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Hotel chain, Oyo also entered the co-living space last year with Oyo living. StayAbode, which has a similar offering to Zolo, raised an undisclosed amount from several investors in August last year. Delhi-based Stanza living raised $10 million led by Sequoia India.

Zolo said it will primarily utilise the funds for expansion to other cities, strengthen its footprint in the six cities it is present and invest in the student accommodation segment. The company will also use the capital to extend the technology division and venture into new technologies like IoT to offer additional services to its customers. Bangalore-based investment Bank, IndigoEdge, was the exclusive banker for the transaction.

Sameer Brij Verma, partner at Nexus Venture Partners, said: “Zolo has registered strong growth in a short span of three years and has emerged as India’s largest player in the co-living space.”

Zolo currently manages 157 properties in Bangalore, Chennai, Kota, Delhi NCR, Hyderabad and Pune via two kinds of models, Zolo Standard and Zolo Select.

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