[Funding alert] Zolostays raises $7M from Trifecta Capital, to add 1M beds by 2025
Bengaluru-based co-living startup Zolostays on Thursday announced it has raised $7 million in funding led by Trifecta Capital, India’s largest venture debt provider. In an official release, the company added that it is in advanced talks to raise its Series C round of funding.
“We are thrilled to have Trifecta on board in our quest to make Zolo the largest and most trusted co-living brand in the country. We will utilise these funds to further our investments in capex, product innovation, and to expand to newer cities in the new year aggressively,” said Nikhil Sikri, CEO and Co-founder of Zolostays, commenting on the latest fundraise.
With a mission to build Zolostays into the 'Amazon of co-living', Nikhil added, their investment programme presents them with a playbook which supports this vision. “Trifecta is a knowledgeable and well-networked investor and we are keen to exploit their relationships to accelerate growth,” he said.
Prior to this, the Bengaluru startup had raised a significant amount of funding ($30 million) as part of its Series B round from IDFC Alternatives, Mirae Asset, and Nexus Venture Partners. The latest round comes as the company continues to build on its momentum, providing co-living options in the swelling sector of communal residential spaces.
“Zolo has showcased a strong record of revenue growth year on year with strong customer satisfaction and word-of-mouth referrals. At the same time, they have maintained a strong focus on unit economics and are likely to achieve profitability in the next 18 months,” said Nilesh Kothari, Co-founder and Managing Partner, Trifecta, on the latest investment.
He further said that Trifecta strongly believed that Zolo's credible brand, wide network, and deep expertise in the operative know-how of co-living would enable them to build a large business. "This will improve the quality of living for millions of mobile professionals and students across the country,” he added.
Founded in 2015 by Nikhil Sikri, Akhil Sikri, and Sneha Choudhry, Zolostays has grown 300 percent and has served over 50,000 customers across 10 Indian cities in the last one year. With 3x growth every year, as claimed by the company, the startup's plan ahead is to add one million beds by 2025 and expand to five more cities to continue on its accelerated growth path.
(Edited by Athirupa Geetha Manichandar)