Bengaluru-based co-living startup Grexter has raised ₹10.5 crores in pre-series A round of funding from Mumbai-based integrated incubator and angel network Venture Catalysts. Ankit Jain of Samyakth Group, few HNIs, real estate professionals, family offices, PE funds and wealth management companies also participated in the funding round.
The startup will use the freshly raised funds to expand the number of rooms and beds and improve its technology-enabled platform. Founded by Pratul Gupta and Nikhil Dosi, Grexter provides rental accommodation for students and young professions. The startup provides affordable living space with housekeeping, Wi-Fi and many other amenities.
Apart from the traditional co-living spaces, the startup has forayed into providing luxurious accommodation in several prime locations across Bengaluru. The startup currently owns 1,500 beds in the city and plans to operate with more than 5,000 beds by the end of 2019, as per the company’s press release.
There are several players in the space. Startups like NestAway, Stanza Living and StayAbode has raised a considerable amount of capital from several investors. Earlier this week in January, Bengaluru-based home rental and co-living startup ZoloStays raised ₹210 crores ($30 million) in series B round of funding from IDFC Alternatives and Nexus Venture Partners.
Budget hotel unicorn OYO and Warburg Pincus have also forayed into the co-living space. Thanks to the growth chart history of the industry. Softbank-backed OYO has made a standalone entry in the segment whereas the PE firm Warburg Pincus invested ₹3,000 crores in forming a joint venture with Lemon Tree Hotels to provide co-living spaces.
The last couple of years have been a good time for co-living startups in the country. The trend is expected to grow as investors are optimistic about the segment. Bengaluru-based NestAway has raised ₹660 crores ($94.2 million) in total funding from investors like Goldman Sachs, Tiger Global Management, Flipkart, Ratan Tata and Chiratae Ventures.
Another Bengaluru-based co-living startup StayAbode has raised funds from several angel investors. In Septem 2018, Stanza Living, a co-living startup based in New Delhi raised more than ₹73 crores from investors Sequoia Capital, Matrix Partners and Accel. These developments clearly indicate that the future of co-living startups in India is bright.