Stanza Living, a managed lodging supplier in India, is within the closing phases of sealing a deal to lift as much as $120 million in a Series D spherical led by an Abu Dhabi primarily based investor, two sources with information of the matter have advised Reuters. The newest funding spherical values the corporate at about $600 million, one of many sources stated, up from about $300 million within the prior Series C spherical in 2019, including that the deal is predicted to shut by the tip of this month.
Stanza’s enterprise mannequin centres across the large market in small guesthouses – regionally referred to as PGs, quick for Paying Guest – which offer reasonably priced meals and lodging to each college students and employees migrating to the nation’s fast-growing megacities. The firm had about 50,000 beds as of March finish 2020 with per mattress rents in cities together with Delhi, Bangalore and Hyderabad starting from Rs 3,000 to Rs 25,000 monthly.
The firm expanded to 4 new cities final 12 months and has beforehand stated it goals so as to add 100,000 beds by the tip of 2021. The nation’s total residential rental market was value greater than $20 billion in 2019, in line with some estimates.
Stanza has thus far raised $70 million from enterprise capital corporations together with Sequoia Capital, Accel Partners, Matrix Partners, Falcon Edge Capital and Equity International. Sequoia, Matrix and Falcon Edge weren’t instantly accessible for remark.
The newest fund-raising spherical had participation from among the current buyers, the sources stated, declining to call which of them. The sources requested anonymity as a result of they weren’t approved to speak in regards to the matter publicly. Stanza didn’t reply to a request for remark. The New-Delhi primarily based agency’s rivals in a extremely fragmented market embody Zolo Stays and Oyo Life, amongst others.
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