JM Financial Private Equity said on Wednesday it completed a transaction to invest Rs 40 crore in Coimbatore based co-living operator, Isthara Parks.
The funds are committed from JM Financial India Fund II, a sector-agnostic growth-capital and Isthara will use the funds for expansion to other cities in the country.
The investment was completed in two tranches between July 2019 and June 2020.
“The Isthara management brings to the table deep domain knowledge in hospitality, IT & real estate and proven execution capability. The Fund focuses on backing strong entrepreneurs with disruptive ideas combined with on-ground operational excellence,” said Darius Pandole, Managing Director & CEO, PE & Equity AIFs at JM Financial.
The second tranche infusion in Isthara will be utilized by the Company to add another 4,000-5,000 beds under executive housing in addition to around 5,000 beds under student housing by the end of the current financial year, the company said.
“In addition to growing on our own, we are scouting for good acquisition opportunities to invest in at reasonable valuations during these times,” said Gilbert James, Managing Director, Isthara.
The Company has become the first co-living operator in India to manage an on-campus student housing facility, with 700 beds under management in Coimbatore. Founded by serial entrepreneur Gilbert James Laurduraj, Isthara provides fully-furnished shared-living accommodation for working professionals and students, with a host of amenities such as daily meals, WiFi internet, gymnasium besides laundry and housekeeping services.
JM Financial India Fund II is a sector-agnostic growth-capital private equity fund set up by JM Financial which invests in high-growth, small to mid-market companies in financial services, consumer, IT / ITeS, infrastructure services and manufacturing sectors.
Source: Economic Times