Bengaluru-based rentable branded and serviced homes startup CoLive has raised a fresh round of funding of Rs 12 crore. And the investment has largely come from SAR Group Family Office, Ncubate Capital Partners, their investment arm. CoLive will utilize these funds to expand its operations. Their immediate plans are to be present in 25 cities and to offer a targeted 1 million properties for renting.
Commenting on the announcement, Mr. Suresh Rangarajan, Founder and CEO – CoLive said, “CoLive is committed to making affordable rented living spaces in urban areas easily accessible to students, young professionals, and young couples, who can thereby enjoy better living conditions without having to face discrimination from landlords. SAR Family Office’s investment in CoLive is not only a definite validation of the company’s business model, but also an opportunity for us to grow further and help solve the urban living conundrum in India by providing 1 million living spaces. With a strong pipeline of inventory, we are firmly on track to reach our 10,000 beds target in the next couple of quarter .”
The real estate sector in India has been going through a churn in the last few years and with many startups coming up with new and innovative ideas to offer better living spaces, the sector has become quite interesting from all perspectives.
While the customers, particularly sections which were struggling to find landlords to rent their properties to them, like students, single working professionals and so on have benefitted, many house owners have found the arrangements quite convenient and productive. CoLive fills this huge gap in demand for accommodation across cities in the country.
Within these sections, the student community is being specifically targeted by CoLive. They have estimated that there is a demand for 6 million beds and the requirements are also unique. This figure is expected to go up to 10 million in the coming years. They are therefore focusing on locations like Vellore and Coimbatore and follow them with cities like Trichy, Thanjavur, Madurai and Amaravathi. As mentioned, the ultimate target is offering 1 million units.
Shared space is still a nascent concept in the Indian context. The way CoLive operates is to take properties and fully furnish them and make all necessary provisions for comfortable living before renting them out on a shared basis. They typically locate these properties closer to educational institutions and large employment clusters, like IT campuses.