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Bangalore-based CoLive, provider of branded serviced rental accommodation for students, first time job goers and young couples is targeting educational hubs in tier II and III cities in the south to expand its presence.
Suresh Rangarajan K, founder and Chief Executive of CoLive, told BusinessLine that the student housing market in major educational hubs such as Chennai, Vellore, Coimbatore, Thanjavur and Trichy offers huge potential for the company to strengthen its footprint. The company plans to provide branded serviced rental accommodation in 25 university towns and cities over the next three years.
Sharing some details about student accommodation market, he said, “There is an estimated 34 million students in the 18+ age group, perusing higher education. Of this, around 1.1 crore students migrate from their base state to a new location to study. But the capacity in college hostels is inadequate to meet the demand. Another 50 lakh homes would be required for such students, and this does not include international students, whose number is also on the rise.”
“We at CoLive enter into agreement with owners of buildings located near educational institutions and business hubs, refurbish the building to provide serviced accommodation and ensure style, security, service and saving”.
‘Huge demand’
CoLive has, since the launch of its service in 2016, grown exponentially with the number of beds increasing from zero to 3,000 in less than 18 months. “We plan to grow the inventory to include a total of one lakh beds in three years,” he said.
The company currently operates 75 properties in Bangalore with 3,000 beds as part of its inventory. “Another 2,000 beds are under development. The occupancy level is over 90 per cent at any given time. Supply is a problem as we look to operate not less than 80 beds in a building,” he said.
“The market is extremely ripe because of the huge demand for such accommodation; and given the slowdown in real estate market, investors, particularly HNIs look to invest in such asset class and the return on investment is assured.”
The company raised $1 million in seed funding from a family office in September 2016. Later in February this year, it raised ₹12 crore. Rangarajan said that it would look to raise another $10 million in six months to take care of its expansion plans
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