[Funding alert] Embassy Group to invest Rs 40 Cr in in-house startup Olive Residences
Embassy Group announced that it will be investing Rs 40 crore in its in-house startup called Olive Residences, which is an asset-light business. This money will be invested over 12 months, with Rs 40 lakh to be spent on an average per project, and the brand will expand to 100 properties during the time.
The startup’s business model is asset-light because Olive Residences will go to existing properties and work with builders to create purpose-built living spaces.
Olive Residences has a two-fold membership approach. One can choose their location of primary residence in Bengaluru city itself and gain access to member partner escape locations, or opt for the exclusive Olive Club on a ‘pay as you go’ system.
Aditya Virwani, COO, Embassy Group said,
“This is a new segment for us, which offers solutions for millennials and building/hotel owners. The pandemic has enhanced the need for flexibility, secure living and the importance of communities. All our facilities are envisioned to meet these needs and the growing aspirations of the millennials and migrants. Our purpose-built portfolio at Olive Co-living are planned in and around our business parks, and Olive Residences will be complementary to our business, with city-centric locations where the demand is high and the land is scarce and expensive. This asset-light business model allows us to maximise returns for building owners – by around 30-40 percent higher than other operators.”
Olive Residences has launched its first property in Koramangala, Bengaluru with one BHK residences, and it will add two more properties in Magrath Road and Indiranagar, Bengaluru which will be ready in the next three months.
Embassy Olive Residences is your new way to rent and share a house.
Olive Residences will take up residential buildings and hotels under a management agreement in the central locations of metro cities, across India.
These properties will be managed by Olive Residences and will be operated in a contactless manner in its app, where everything – from booking, payments to retail – can be transacted on the app.
Kahraman Yigit, Co-Founder and CEO, Olive by Embassy said, “Olive Residences will be the world’s first private residence club for millennials and migrants, based on sharing economy. Having a primary residence and access to multiple escape locations will be a welcome change, adding to a fun and exciting lifestyle for young millennials. To ensure a fair and reasonable pricing mechanism, the ‘pay as you go’ system ensures that our residents only pay for the amenities used, with no hidden charges. We are very excited to introduce this new innovative concept in the market and are confident that this will also bring in the much-needed standardisation to the serviced accommodation sector."