Anjali Sharma stayed as a paying guest (PG) in the first six months of moving to Gurugram before moving into a CoHo apartment. There was no running around to do the paperwork, cleaning or WiFi once she had identified the location. The CoHo apartment was ready to move in the very next day. Co-living has become an attractive option for millennials who move to different cities for professional or educational purposes and there are host of startups like Nestaway, ZoloStays, CoHo helping find hassle-free renting options.
Increasing preference for co-living has seen the market grow and also kept the deal street busy. Softbank backed OYO announced OYO Living last year with over 96 properties in Gurugram, Bengaluru, Pune and Noida. Home rental service provider NestAway Technologies raised $51 million last year from investors like Goldman Sachs and UC-RNT Fund, a joint venture between Ratan Tata’s RNT Associates and University of California. Grexter raised $1.5 million dollars in Pre-Series A funding from Venture Catalysts just a few days ago. Zolostays recently raised a Series B funding of $30 million led by IBFC Alternatives and others.
“With the entry of new players and a strong technology backing, the sector is becoming more and more organised. We have experienced a three-fold growth and plan to raise $ 3-5 million in the first half of this year,” Nikunj Batheja, Cofounder and CEO, Homigo said.
Real estate consultancy Knight Frank says 72 per cent of millennials (18-23 years) have given co-living spaces a thumbs-up, and 55 per cent in the age group of 18-35 had voted for it in a survey.
“Last year we witnessed afive-foldd growth. We now have 2,500 operational beds in Delhi, NCR and Bengaluru and plan to expand to 12000 beds by 2019. We also plan to take our services to Pune, Hyderabad and Mumbai. We plan to raise $10 million dollars by the first half of this year,” said Uday Lakkar, Co-founder, CoHo.
CoHo leases out entire apartments from landlords and then works on them to make them user ready. A part of the revenue is also shared with the landlords. Homigo, meanwhile, does a long term rental agreement with owners, offering fixed rent irrespective of occupancy and keeping a percentage of rent charged from