Zolostays, the tech-enabled co-living services provider, announced the raise of a new $56 million Series C round led by Investcorp along with, Nexus Ventures Partners, Mirae Assets, Trifecta Capital, among others.
With this round, Zolo has raised a total of $90 million to date.
Zolo develops and operates innovative, digitalised living concepts for target groups with differentiated needs like students and young professionals, who are moving to new cities. In these uncertain times, when it is a challenge for people to make long term commitments, pay large deposits and buy expensive furniture Zolo offers flexibility between shared rooms and private rooms, no lock-ins, with only one month of rent as deposit.
Also read: Zolostays offers 75 days rent-free stay for residents who lost jobs
At present, 40,000 (beds) people can reside in properties by Zolo and over 125,000 have experienced Zolo homes and its community ‘Zotribe’ in the past five years. The company aims to reach 1 million (beds) people in the next 5 years.
Speaking on the fundraise and Zolo mission, Co-founder and CEO Nikhil Sikri said, “We are creating a personalised living experience keeping the customer at the core. It allows them to personalize the way they live and work, all on their terms. We partner with them as they rewrite their own story and re-imagine life. Our unique approach allows us to enjoy the highest Net Promoter Score (NPS)- a benchmark indicator of customer satisfaction in the industry.”
He said the new funds will be invested in locking in further inventory, strengthening the tech platform to drive more AI-led operations and build proptech capabilities.
“We have always been excited about managed living as an asset class as it aligns to our thesis to capitalise on the mega trend of urban migration. Zolo has created a trusted and reputed brand with its continuous innovation in building products for hassle-free living, an obsession of quality and laser-sharp focus on customer experience,” said Gaurav Sharma from Investcorp.
Today, there are over 500 Zolo properties spread across ten cities and another 500 are planned to start operations to absorb future demand.
Zolo is soon launching an uber-premium brand extension called Zolo Red Carpet, in three major cities. These micro-living spaces will provide an elite experience which will include wellness studios, all-day in-house cafes, workspaces, exquisite decor, and concierge services.
Sameer Brij Verma from Nexus said, “We have backed the company in each round since inception. Zolo is now benefiting from the supply side disruptions as other unorganised operators are not able to sustain service levels in the tough environment. With scale, Zolo’s value proposition to both the customer and the asset owner would substantially increase due to the network effect - thus allowing Zolo to win a disproportionate share of the $20 billion managed living services market.”
Founded in 2015, by Nikhil Sikri, Akhil Sikri and Sneha Choudhry, Zolo claims it is the category leader with 70 per cent market share in the organised co-living space. It offers two kinds of stays - Zolo Standard and Zolo Select across all its 500 properties in over 10 cities.
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