Tech-based home rental platform CoLive on Thursday announced funding of Rs 12 crore from the private investment arm of SAR Group Family Office (Ncubate Capital Partners). This round makes it a total of Rs 18 crore in their investment. A press release from the company states that this amount will be used for expanding presence in 25 cities and enhancing the platform’s technology infrastructure.
Launched in 2016, the company offers rentable branded and serviced homes—fully furnished and equipped with the latest amenities—near educational institutions and major business hubs.
Following an asset-light business model, CoLive currently operates 75 properties in Bengaluru with 3,000 beds as part of its inventory.
Suresh Rangarajan, Founder and CEO, CoLive, has said in the press statement, “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 one million living spaces."
He added that CoLive is on track to reach 10,000 beds target in the next couple of quarters.
According to property consulting firm JLL, there is an acute shortage of properties in the student housing market – approximately more than six million beds. This shortage is likely to reach 10 million in the next three years due to increased migration of students for higher education and professionals for employment. This is the market that CoLive is targeting, aiming to service a million homes across 25 cities over the next decade.
CoLive has begun its first phase of expansion by venturing into cities like Vellore and Coimbatore. It aims to reach other locations including Trichy, Thanjavur, Madurai and Amaravathi in the next quarter.
Indian business conglomerate SAR Group is primarily engaged in water (brand – Livpure), clean-tech and automotive batteries (brand – Livguard) businesses. Its private investment arm Ncubate Capital Partners claims to provide a combination of growth capital, skill-gap fulfilment and knowledge to growing startups.
Rakesh Malhotra, Managing Partner, Ncubate Capital Partners, said, “With more people renting than buying, CoLive has a massive potential across the market. Moreover, I firmly believe that student housing problem is one such challenge that can be solved through technology and the right amount of strategic planning. I wish that the initiative taken by CoLive of offering consumers a meticulously developed product proves to be a huge success and will make the renting economy a whole lot more favourable to young, migrant Indians.”
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