The company plans to add around 60,000 by the end of 2022 to its 42,000 beds across major cities in the country. “We have already signed 20,000 beds and are looking to grow our current inventory by partnering with asset owners,” said Sikri.
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Zolostays to add 30,000 beds this year
During the pandemic, Zolostays’ occupancy levels dropped to 35% from a high of 80% registered between January-July, 2020.
“The occupancy has reached around 60% with campuses opening. The industry was hit by the pandemic but there is enough opportunity for organized players,” said Sikri.
Now Zolostays is targeting break-even status by the end of this year and foray into the international markets in Dubai, Indonesia, and Thailand with the student housing segment.
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“We are very bullish on the co-living segment from a long-term perspective and are evaluating a couple of international opportunities,” said Sikri.
In a round of funding in July 2020, the co-living and student housing firm raised $56 million making a total of $90 million raised to date.
“We are holding on to making any long-term investment and focus on leakages. We have enough capital and don’t have to struggle for survival,” he added.
Zolostays is backed by Investcorp, Nexus Ventures Partners, IDFC Alternatives, Trifecta Capital and Mirae Assets.
According to industry estimate, co-living segment is expected to expand to 4,50,000 beds mainly driven by organized players by 2024 from 2,10,000 beds at the end of 2021.
The concept of “Shared Economy” got severely tested during the peak of the pandemic. Factors such as uncertain economic conditions resulting in loss of jobs, work from home and the shift of migrant population to their respective hometowns in the wake of the Covid-19 outbreak brought the evolving co-Living sector to an immediate halt.
