In a series B funding, the home rental startup ZoloStays has raised $30 million. A major portion of this investment has come from the startupâ€™s existing investor, Nexus Venture Partners. The other investors in this round include IDFC Alternatives, Mirae Asset. With this funding, it is said that the valuation of ZoloStays has crossed the $100 million mark.
With Bengaluru as its base, ZoloStays fashions itself as a co-living and home rental platform and plans to expand its operations with the infusion of these funds. Some of the areas it works on include paying guest accommodation, service apartments and independent flats. Existing operations are spread into 4-5 major metros like Bengaluru, Pune, Chennai and Hyderabad besides Kota. In terms of the numbers, the company quotes a figure of 16,000 as the number of live beds and the ones locked-in as 50,000. There are two offerings, Zolo Standard and Zolo Select.
ZoloStays takes comprehensive care of the properties including the payment of utilities bills like electricity and water charges etc. It has deployed a lot of technology to help with these processes. The company has issued a statement that it will continue to focus on automation and gadgets like Internet of Things (IoT) for these activities. They say they believe in a broader customer engagement through online and offline initiatives.
When it comes to funding, the series A funding in the earlier round was worth $5 million and the startup says it has grown 8 times in the last 3-4 years and the objective is to grow 10 times from the present levels in the near future. It may almost double its staff-count too, from the current 350 to around 550 before the end of this year.
There is enough competition in the real estate space that ZoloStays operates in, with startups like NestAway, Stanza Living, YourSpace, Campus Ville and Coho Dorms, all operating in some form or the other in the same set of services.
A sizeable 70% of the rental residential market is found in the cities and the overall rental business in the country is being estimated to be around $18-20 billion.