NestAway has raised $5 million worth second tranche from University of California and RNT Associates (UC RNT Fund) in its ongoing Series D round. The co-living and co-working provider had raked $10 million from Tiger Global and Chiratae Ventures in May this year.
The new tranche would help the Bangalore-based firm in expansion, fighting intense competition as well as ramping up new brand Hello World. Besides offering co-living and student living, Hello World has also marked NestAway’s debut into co-working space.
Last week, Entrackr had exclusively reported about its new brand.
According to RoC filing with the Ministry of Corporate Affairs (MCA), NestAway has issued 13,882 Series D1 CCPS share. Each share was offered at a price of Rs 25,161. It’s worth noting that Tiger and Chirate also invested the same amount – $5 million in the first tranche of NestAway.
While there have been several media reports in the past six months emphasising that the firm is eyeing $100 to $150 million, it yet to be seen at what point it closes its Series D round.
NestAway requires a staggering three digit round to fend off deep-pocketed competitors including OYO Life, CoHo and Stanza Living among others.
Apart from the aforementioned startups, US-based private equity giant Warburg Pincus had formed a joint venture with mid-price hotel chain Lemon Tree Hotels for a co-living brand – Hamstede Living.
Co-living and co-working opportunities are massive opportunities as both segments are highly unorganised across major cities such as Bengaluru, Pune, NCR, Hyderabad, and Chennai.
A PropTiger report anticipated that the segment could be worth $93 billion industry in a few years from now.
Given that co-living has been gaining a decent amount of traction from venture capitalist and cash-rich multinationals, space is bound to go through consolidation sooner than later. A few months ago, Homigo – a Bengaluru-based startup went out of business. The company allegedly vanished with tenants advance payments.
It would be exciting to observe at what point ends the ongoing Series D round of NestAway.