NestAway Raises $51 million, To Enter Into student Housing

Nestaway, that provides home rental services and is believed to have the largest networks in such business, has raised $ 51 million or Rs 330 Crores in series D financing from a consortium led by Goldman Sachs. The others who took part in the funding include UC-RNT Fund, a joint venture between Tata Son’s chairman emeritus Ratan Tata’s RNT Associates and the University of California and Schroder Adveq. This round also saw participation from its existing investor IDG India and Tiger Global.

With this advanced funding the firm is planning to expand its business into community and student housing besides bettering the current categories.

“Our vision is to create accessible living using imagination and empathy & we have been humbled by the market acceptance of our shared as well as family rental solution. With this funding, we shall strive harder to impact not only where people live but also how they live and shall work on community housing and student housing in addition to our existing categories. We are glad that our new partners in this journey share our vision and passion to create unique living infrastructure in this country using design and technology,” said Amarendra Sahu, Co-Founder & CEO, NestAway Technologies.

The company has recently introduced “One by NestAway,” a community housing rental solution aimed at catering to a group of like-minded people wanting to stay together.

Founded in 2015, NestAway is in the business of “furnished shared rental,” a rental solution that caters to individuals looking for affordable rental housing in the top 10 cities in India.

Under its business model, NestAway enables tenants and house owners not to pay any brokerage fee. The company serves as a broker and property manager for home owners by helping to find tenants, collect rent and manage the property over its lifetime in exchange for a percentage share of the rental stream.

With its technology enabled platform and sophisticated data analytics capability, NestAway today caters to over 35,000 tenants and 16,000 owners, including over 7,000 family owners in Bangalore, Delhi, Faridabad, Ghaziabad, Greater Noida, Gurgaon, Hyderabad, Noida, Mumbai and Pune.

Unlike western markets, managed lease service is absent in India, which causes challenges for owners, especially for non-resident Indians (NRIs) to remotely manage their rental properties. According to the latest Census, around a million homes remained locked as owners could not find an easy and seamless way to rent their homes. While listing sites, provide listings and lead generation services to owners, there is no organised service provider who also provides lead generation, closure and property management services. NestAway provides all three together under a single brand.

As part of its rental solution, NestAway offers structure and content insurance of up to Rs 1 crore to every owner which protects them against tenancy linked damages to the property. Nestaway also provides legal assistance to owners and tenants by adopting a standard rental contract and attention to disputes during the course of rental, a tailored service which is differentiated from what is available in developed markets.

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