Real estate firm Salarpuria Sattva Group has led a Series A investment of Rs 63 crore ($9.1 million at the current exchange rate) in Colive, a technology-driven co-living space provider.
The development comes days after VCCircle reported that the Bengaluru-based developer was set to add a new vertical to its real estate portfolio by investing in Colive’s parent firm, Co-Life Advisory Pvt. Ltd.
Colive said in a statement that the fresh capital will be used to scale up its operations from 12,000 beds to 1 lakh beds over the next two years and to expand its presence in Hyderabad, Mumbai and Pune and bolster its technology capabilities. It did not mention whether any other investors had participated in the round.
“Our mission is to make fully amenitised, technology-enabled, stylish living spaces easily accessible to working professionals, millennials and Gen Z at an affordable price,” said Suresh Rangarajan, founder and chief operating officer of Colive.
He added that the company also plans to invest in the build-to-suit model inventory for co-living purposes.
Colive currently offers co-living spaces across Bengaluru and Chennai and co-working spaces only in Bengaluru. It also provides rentals to small and medium enterprises such as professional firms, technology companies and new-age startups.
The startup was founded by Suresh Rangarajan K, a chartered accountant and Yale University alumnus, in 2016. He had previously founded digital payments venture TimesOfMoney.com and remittance firm remit2india.com apart from working at financial services major Citibank and realty company Artha Properties.
Colive had earlier raised Rs 17 crore in pre-series A funding.
“Co-living is going to be the next big wave in India which will alter the real estate landscape in Tier-I cities, specifically IT hubs,” said Bijay Agarwal, managing director of Salarpuria Sattva Group.
Besides commercial and residential projects, which is its mainstay business, the Salarpuria Sattva Group is present in the hospitality, education and facilities management sectors. It operates across Bengaluru, Hyderabad, Kolkata, Pune, Coimbatore, Jaipur and Goa.
The company claims to have completed 26 million sq. ft of real estate projects and has another 38 million sq. ft under construction. Its key commercial projects include Knowledge City, Knowledge Capital, Knowledge Park and Image Towers across Bengaluru and Hyderabad.
India’s shared working and living spaces
A number of co-living and co-working companies, including startups, have emerged in the real estate market. This has attracted investors keen to cash in on the opportunity in the segment.
CoWrks, backed by commercial real estate developer RMZ, said last week that it was looking to raise $350 million from external investors to fuel its expansion plans.
Other firms offering co-working spaces include Awfis, WeWork, Regus and Smartworks. Budget hospitality unicorn OYO has also diversified into the segment.
The Ascendas Group is also looking to make its presence felt in the co-working segment through its brand The Bridge.
According to a report by property consultant ANAROCK, co-working spaces are proving to be cost-efficient by cutting down outlays on rentals, fixed-capital investments and property maintenance.
“Even the big daddies of the corporate world are now scouting for more flexible and cost-effective workspaces so as to cater to the evolved needs of their new workforces,” the report said. “They prefer small teams on specific projects to work in a collaborative culture. Those eyeing smaller towns favour satellite offices that are cost-effective and more financially viable.”