StayAbode, a Bangalore-based startup that offers co-living spaces in India, has raised an undisclosed sum in angel funding from a consortium of investors, led by Ishan Manaktala and Angie Mahtaney.
Gaurav Bhalotia (Ex-VP Engineering, Flipkart), Vishal Lulla (CEO, Vishal Exports) and a group of investors from LetsVenture have also participated in the round.
Co-founded by Viral Chhajer, Varun Bhalla and Devashish Dalmiya, StayAbode is leveraging technology, design, service and brand to build co-living spaces for the rental residential real estate market. Its co-living spaces mix small private spaces, containing more than a bed and cupboards with communal areas — kitchens, common rooms, games areas, music and art corners.
The spaces are designed primarily for the singles, who can’t be bothered with the hassles of managing an apartment.
StayAbode currently offers over 180 beds spread over four properties across Bangalore and has plans to expand to other cities in due course.
Co-founder Chhajer said: “The sharing economy is transforming industries and the way we now look at utilising resources. Our co-living spaces maximise space utilisation that allows members of our community to live in a facility at a price they would pay for a sub-standard accommodation facility in the city.”
Current residential real estate designs leave some parts of the house extremely under-utilised (kitchens and living rooms). With the increasing value of real-estate, this causes property owners to get a much lower yield on the investment.
For property owners, StayAbode gives up to 100 per cent higher yield on their properties. StayAbode claims it has a healthy pipeline of real estate owners who are signing up their properties with them. It helps increase rental yields from the current 3 per cent to 4 per cent 10 per cent 11 per cent for property owners.
“As more people move to cities for work and study, finding and maintaining quality accommodation continues to be a big challenge. StayAbode is using technology to create living spaces that support the new lifestyle of the young, single-demographic household, enabling a high level of comfort, convenience and community all at ‘tap of the mobile screen’,” Bhalotia said.
In January this year, Zolo, another Bangalore-based platform for managed co-living spaces, secured US$5 million in Series A funding led by Nexus Venture Partners.