India’s managed-accommodation services provider Stanza Living is reportedly in the final stages of securing Series D funding worth USD 120 million. The apparent funding round is currently led by an Abu Dhabi-based investor, with the deal likely to close this month.

The latest funding round is likely to value Stanza Living at USD 600 million. For those unaware, the company, which is backed by an American investment firm Sequoia Capital, had previously reached a valuation of USD 300 million during a Series C funding round conducted in 2019.

Stanza Living’s business model revolves around the large market of small guesthouses, also known as Paying Guest. The company primarily focuses on offering affordable food & accommodation to workers as well as students who are particularly migrating to Indian urban cities.

Stanza Living had accounted for 50,000 beds as of March 2020 in cities such as Hyderabad, Bangalore, and Delhi, ranging from around USD 41.31 to USD 340 per month. The startup then expanded to additional four cities in 2020 and intends to add 100,000 beds by the end of this year.

It is also worth mentioning that Stanza Living has raised around USD 70 million from investors such as Sequoia Capital, Matrix Partners, Accel Partners, Equity International, and Falcon Edge Capital. In this context, sources confirmed that some of the existing investors had also participated in the recent funding round.

If market speculations are right, the residential rental market in India had reached a valuation of USD 20 billion in the year 2019. Stanza Living’s main competitors in this highly fragmented market include Oyo Life and Zolo Stays among others.

Speaking of Oyo, the Haryana-based hotel rooms aggregator has reportedly exited its co-working and co-living platform Oyo Life as a part of its cost-cutting efforts which stemmed during the COVID-19 lockdown.

Source Credits –

https://www.vccircle.com/sequoia-backed-stanza-living-in-final-stages-of-raising-series-d-funding