The Bengaluru-based company, which had initially set a target of 150,000 beds by the end of 2021, has scaled back the target to 85,000. However, it aims to reach 200,000 beds by December 2022.
“Covid has consolidated the sector and though the industry will shrink, market share of the leading companies will increase,” said Zolostays CEO Nikhil Sikri.
Having raised $56 million recently, the company has entered into a deal with Mumbai-based developer Rupa Group to create a 100-bed co-living space for the first time in the integrated IT Park, Rupa Renaissance, located in the upcoming micro-market of Juinagar.
“We will follow the built-to-suit model where we will tie-up with the developer at the time of construction so that the design can be planned as per the requirement of a co-living facility. Our investment will be in interiors and tech,” said Sikri.
The Mumbai facility is following the same model and will be ready in nine to 12 months, he said.
The deal, facilitated by international property consultant Savills India, also has the option of expanding up to 1,500 beds in the developer’s next project.
“The co-living segment has a vast opportunity to grow exponentially as an alternate asset class, especially in urban centres where the large part of economic activities take place, making them strong employment hubs, ” said Bhavin Thakker, head of Cross Border Tenant Advisory, Savills India.
Sikri said that in terms of occupancy, the National Capital Region is faring better than Bengaluru and Pune since it has a mix of companies in comparison with other cities, which are IT hubs.
Founded in 2015, Zolostays is operational across 10 cities with 45,000 live beds and more than 70,000 customers. Apart from Zolo Standard and Zolo Select, Zolostays has now rolled out its premium service offering called Zolo Red Carpets.
“Entry of Zolo’s Red Carpet in our integrated campus complements the IT/ITeS Office Park and completes the walk-to-work concept,” said Bimal Desai, managing director, Rupa Group.