CoHo plans to raise up to Rs 100 cr; points to 1 lakh beds in 3 years
New Delhi, November 4 () The new company Co-living CoHo is in talks with strategic investors and financial institutions to raise Rs. CEO Uday Lakkar said.
The company, which began operations in 2015, currently has about 3,500 beds mainly in Delhi-NCR and Bengaluru, and another 10,000 beds will be launched soon.
We are actively seeking to raise capital from strategic actors and pure gaming financial institutions to finance our expansion plan. Our goal is to reach a lakh beds in the next three years, Lakkar said.
He said the company would establish living facilities in four meters: Bengaluru, Chennai, Hyderabad, Pune and other major urban cities.
The rapid growth will be driven by a combination of leasing and franchise models, Lakkar said, adding that the company was already in talks with real estate developers who want to enter this growing space of coexistence.
When asked how much he would raise, he said: We are looking to raise Rs 70-100 crore.
Lakkar said the company has already achieved a balance at the property level and that it would be profitable at the entity level in the next financial year.
He said the company's proprietary technology will play an important role in rapid growth, driven by machine learning, Internet of things (IoT), artificial intelligence, data and predictive analysis of consumer behavior.
CoHo's growth will accelerate through partnerships with real estate developers and fund houses that seek to build a portfolio in this space, where CoHo acts as the operator that optimizes asset monetization better, Lakkar said.
CoHo offers rental accommodation to students and working professionals. It serves premium retail and institutional clients such as IIT Delhi, Pearl Academy, Indian School of Hospitality (ISH) and Max Healthcare, among others.
According to a PropTiger report, the coexistence business has the potential to become a market of USD 93 billion annually due to the growing demand for rental housing by students and professionals. The coexistence sector has a total untapped demand of approximately 46.3 million beds; of which 8.9 million come from student housing, he added
In their latest report, the Association of Student Housing Providers of India (SAPFI) and the global property consultant CBRE said that the student housing/living space is expected to witness an investment worth USD 700 million and an addition of 0.6 million beds by 2023 across the country. country.
The 30 best players in student housing/living space offered a cumulative stock of more than 2.5 lakh beds as of August 2019. Recently, many real estate developers, such as Embassy, Puravankara, Salarpuria Sattva, Tribeca and the BDI group, have decided to enter the coexistence business. MJH ANS ANS