Summary:

  • Stanza Living specializes in providing managed accommodation solutions, catering primarily to working professionals and students

  • The round was led by Alpha Wave

  • The company boasts an inventory of more than 75,000 beds spread across 450 residences in 24 cities.

Managed accommodation provider Stanza Living has secured Rs 110 crore ($13 million) in a bridge funding round led by Alpha Wave, marking its first equity financing in over three years. The Delhi-based startup’s board authorized the issuance of 1,207 preference shares at Rs 911440.17 each, according to regulatory filings accessed from the Registrar of Companies.

Alpha Wave contributed Rs 83 crore to the round, while existing investors Matrix Partners, Accel India, and Peak XV collectively added Rs 27 crore. 

Before this round, Stanza Living had been in discussions to raise around $25 million. Historically, the company raised $57 million in debt from Kotak Mahindra Bank and RBL Bank in March 2022 and secured $100 million in an equity round in April 2021. To date, Stanza Living has amassed over $230 million through a combination of equity and debt funding.

Stanza Living specializes in providing managed accommodation solutions, catering primarily to working professionals and students. The company boasts an inventory of more than 75,000 beds spread across 450 residences in 24 cities. This expansive network has fueled substantial revenue growth; the firm’s operational revenue soared to Rs 442 crore in FY23, up from Rs 115 crore in FY22. However, its losses also increased by 18.71%, rising to Rs 495 crore in FY23 from Rs 417 crore in the previous fiscal year. The company has yet to release its audited financial statements for FY24.

In the competitive co-living market, Stanza Living contends with players like Colive, Your Space, Settl, Union Living, and Coho. The industry has seen significant shake-ups, exemplified by Tiger Global-backed NestAway, which was acquired by Aurum PropTech (formerly Majesco Ltd) last year at a sharply reduced valuation of $11 million.

Stanza Living’s recent funding efforts underscore its commitment to scaling its operations and refining its service offerings amidst growing demand for co-living spaces in urban centres. The capital infusion will likely support further expansion, enhance operational efficiencies, and potentially mitigate the financial losses recorded in the previous fiscal year.

The strategic involvement of Alpha Wave and the continued support from Matrix Partners, Accel India, and Peak XV indicate strong investor confidence in Stanza Living’s business model and growth prospects. As the company continues to expand its footprint across major cities, it remains well-positioned to capitalize on the increasing preference for managed living solutions among India’s young professionals and student population.

With the co-living sector poised for further growth, Stanza Living’s focus on providing quality accommodation, robust operational infrastructure, and scalable solutions could reinforce its market leadership. The company’s ability to attract significant investment, despite economic headwinds and heightened competition, highlights its potential to drive innovation and set new benchmarks in the managed accommodation space.