Exclusive: Global student housing startup Amber to raise $15-20 Mn

Global student housing solutions provider Amber Student is raising a venture round, according to two sources aware of the development. This will be the first institutional round for the Pune-based startup.

“Amber is in late-stage talks to raise a $15-20 million round from a venture capital firm,” said one of the sources, requesting anonymity. “Currently, the company is negotiating terms of the deal which is likely to materialize in three-four weeks.”

Founded by Saurabh Goel and Madhur Gujar, the startup counts Ola’s Bhavish Aggarwal, Khatabook’s Ravish Naresh and former FreeCharge co-founder Sandeep Tandon as its angel investors. Some of these investors have also exited the firm, said sources.

Amber claims to operate over 340 student housing operators in seven countries: the UK, USA, Australia, Ireland, Germany, Canada, and Spain. The app helps students discover verified properties, compare, and book housing options.

“Amber has grown multifold in the past two years (post Covid) and their metrics attracted several venture capitalists,” said the above-mentioned source. “Several investors expressed definitive interest and Amber may end up raising more money (above $20 million). The company is likely to be valued around $100 million.”

Entrackr could not verify the name of the investor leading the new round. Amber declined to comment on the story.

As per the company, it weeds out broker negotiations, streamlines paperwork, and payment processes. It claims to have 1 million beds and has provided accommodations near 800 universities in the countries with their presence.

Amber recently claimed that it reached a gross bookings value (GBV) of $600 million in 2022 while its operational revenue soared to $15 million with a post-tax profit of $6 million. In 2023, Amber expected to cross $1.2 billion in GBV for their respective partners.

Amber, which is registered in the US, recorded Rs 17.9 crore ($2.35 million) in operating revenue and Rs 2.81 crore ($0.36 million) profit in India during FY22, according to data intelligence platform TheKredible. The firm is yet to file its audited annual report for FY23.

An industry report suggests that the student housing market is projected to continue to grow to be worth over $25 billion by 2025. Amber competes with several Indian brands including University Living, Your Space, Good Host Spaces, and Homversity, among others.