Shared living operator Stanza Living said it has secured debt capital of $57 million (Rs 425 crore) co-led by Kotak Mahindra Bank and RBL Bank, with participation from existing lender Alteria Capital.
The proceeds will be used to fund capital expenditure for Stanza Living’s current and future projects and accelerate its next phase of multi-city expansion. This debt infusion comes on the back of the $100 million equity funding raised by Stanza Living in 2021.
Stanza Living, which has more than 75,000 beds, offers shared accommodation for students and working professionals in 23 cities across the country.
Till date, Stanza Living has raised close to $220 million in debt and equity.
“This debt raise is a result of our prudent financial management and disciplined planning to stay ahead of short-term market challenges. It will provide us with ammunition to deliver a higher return on equity and continue aggressively scaling our operations across the country,” said Anindya Dutta, managing director and co-founder, Stanza Living.
After the initial slowdown caused by the pandemic, the company said it has demonstrated strong resilience and has recorded one of the fastest recoveries in consumer demand over the last two quarters.
Recently, Stanza Living also launched a new business vertical in the form of campus facility management on the back of strong inbound interest from large academic institutions and corporate houses, as well.
The managed accommodation sector in India has witnessed a multi-fold increase in demand for reliable, high-quality and safe accommodation options, especially in the wake of the pandemic.
With the increasing adoption of hybrid work/study models, operators such as Stanza Living creating solutions for diverse consumer segments, as the sector continues to attract investor interest.
Stanza Living is backed by Alpha Wave Incubation, Equity International, Falcon Edge Capital, Sequoia India, Matrix and Accel Partners.
