Coliving operator Stanza Living on Wednesday said it has raised Rs 425 crore in debt funding led by Kotak Mahindra Bank and RBL Bank for capital expenditure and business expansion across major cities. Stanza Living, which provides rental accommodation to students and working professionals, was co-founded by Sandeep Dalmia and Anindya Dutta in 2017.
The company has secured $57 million (around Rs 425 crore) in debt financing led by Kotak Mahindra Bank and RBL Bank. Its existing debt provider Alteria Capital also participated in the latest round.
''The proceeds will be utilised to fund capital expenditure for Stanza Living's current and future projects, and accelerate the company's next phase of multi-city expansion,'' Stanza Living said in a statement.
This debt infusion comes on the back of $100 million raised by Stanza Living last year in equity funding. The company has operations in 23 cities with more than 75,000 beds. To date, Stanza Living has raised close to $220 million in debt and equity combined.
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Anindya Dutta, MD and co-founder, Stanza Living, said, ''This debt raise is a result of our prudent financial management and disciplined planning to stay ahead of short-term market challenges. It will provide us with ammunition to deliver a higher return on equity and continue aggressively scaling our operations across the country''.
After the initial slowdown caused by the pandemic, Stanza Living said it has demonstrated strong resilience and recorded one of the fastest recoveries in consumer demand over the last two quarters.
Recently, Stanza Living also launched a new business vertical in the form of campus facility management on the back of strong inbound interest from large academic institutions and corporate houses. The Gurugram-based company is backed by global investors like Alpha Wave Incubation, Equity International, Falcon Edge Capital, Sequoia India, Matrix and Accel Partners.
(With inputs from PTI)
