Guesture, which provides shared, rental accommodation, is in talks with investors to raise $50 million, as the Bengaluru-based firm plans to expand its presence to other cities, said a top executive.
Guesture, which is a subsidiary of Shanders Group, is currently developing a 40-acre youth city in Electronic City, Phase 2 in Bengaluru and plans to have around 4,00,000 beds across 20 micro-markets in different parts of the country by 2025.
“We are in discussion with private equity funds, strategic investors and sovereign funds. We are also exploring raising funds from global markets and exchanges,” said Pramod Kumar, director, Guesture.
The company plans to raise the funds in the next 12 months.
Guesture, which has been operational for around four years now, has been primarily self-funded and its founder Sriram Chitturi has invested ₹75 crore in the company so far. It has received debt funding from the State Bank of India (SBI), Kumar said.
The firm, which targets students and millennials between 18 and 35 years of age, currently runs two properties that cater to working professionals and students from Symbiosis, Azim Premji University, IFIM Business School among others.
A slew of start-ups are offering millennials co-living facilities, comprising outstation students and young professionals, who need a place to stay. Alternate living models typically comprise student housing and shared co-living facilities with all utilities and amenities, community kitchens and family rentals.
Nestaway, OYO Life, StayAbode, Stanza Living and Zolo Stays are some of the other operators of co-living facilities across the country.
Guesture recently added 2500 beds to its Guesture Wellington property in Electronic City, spread across 3.5 lakh sq ft.
Source: Mint