Shared-living space provider CoLive, owned by CoLife Advisory Pvt. Ltd, has raised $1.8 million (Rs 11.7 crore) in a round of funding led by Ncubate Capital Partners, a venture capital arm of SAR Group that engages primarily in water purifiers, clean tech and automotive batteries, the startup said in a press statement.
The funds will go towards expanding CoLive’s services, strengthening the technology infrastructure and enhancing the talent pool, the company said in the statement.
Bengaluru-based startup CoLive enters into long-term rental agreements with investors, developers, and franchisees that own properties, usually for a period of five years. The startup then transforms the property into branded and serviced houses meant for shared living. CoLive aims at revenue from fixed rentals and property management fee (PMF). Under the fixed rentals model, the company promises a predetermined sum to the owners of a property, and any funds received over and above that is considered revenue for the startup. Under the PMF model, the revenue is shared, based on a predetermined ratio, which may vary across Tier-I and Tier-II cities.
“The investment in CoLive is not only a definite validation of the company’s business model, but also an opportunity for us to grow further and help solve the urban-living conundrum in India by providing one million living spaces. With a strong pipeline of inventory, we are firmly on track to reach our 10,000 beds’ target in the next couple of quarters,” said Suresh Rangarajan, founder and chief executive of CoLive.
Rangarajan, a graduate of Yale School of Management, had previously worked with Wall Street bank Citigroup Inc. He was the president and chief executive of digital payments and remittances service provider TimesofMoney and later founded real estate development company Artha Group.
“With more people renting than buying, CoLive has a massive potential across the market. Moreover, I firmly believe that the student-housing problem is one such challenge that can be solved through technology and the right amount of strategic planning,” said Rakesh Malhotra, managing partner, Ncubate Capital Partners.
Ncubate Capital Partners invests in early-stage ventures. Its parent SAR Group is primarily engaged in water purifiers (Livpure), clean tech, and automotive batteries (Livguard).
CoLife, which also owns shared-working space provider CoWork247, had raised $1 million (Rs 6.7 crore) in seed funding from Sachin Khimji Nuvo Investors and Realtors Pvt. Ltd in September 2016. With the current round, the company has raised Rs 18 crore in total.
CoLive currently operates 75 properties in Bengaluru with 3,000 beds as part of its inventory. It aims to offer one million managed homes in 25 cities across various regions of India. The company has recently ventured into cities like Vellore and Coimbatore. It plans to expand services to more locations including Trichy, Thanjavur, Madurai and Amaravati in the next quarter.