Student housing startup Your-Space has raised $10 million (around Rs 75 crore) from a clutch of investors for the expansion and growth of its business.
The company has raised the amount in Series A funding through a combination of pure equity and convertible debentures, Your-Space said in a statement.
The funding round was led by personal investment from Shantanu Rastogi (General Atlantic) and Ajay Gupta's (Capital Foods) family office AJAX Capital and Holy Basil Consultancy.
The round also saw participation from Manish Choksi's (Vice Chairman at Asian Paints) family office, Sunidhi Group's family office, Sanjaya Gupta (former MD & CEO of PNBHFL), among others.
''The fundraising is a testament to the confidence of our stakeholders in our value proposition- sharp focus on product management and redefining customer service standards at a reasonable price,'' said co-founder and COO Shubha Lal.
The funds will help the company deepen its presence in a competitive crowded market, she said. Your-Space has over 7,000 operational beds in 9 cities. It targets to have more than 20,000 beds by July this year for the coming 2022-23 academic year.
''It (funding) gives us the firepower to continue delivering global service standards at scale,'' said Lal.
Your-Space said the company was formed with a purpose to better the students' world while they toil hard to study away from their homes. It focuses on security, comfort, community and health.
''The company will utilise these funds for growth focusing on metros and tier I cities. They will also be enhancing operating robustness through a scalable, modular technology platform, which will help augment user experience and assist in building a large student community,'' the statement said.
Your-Space will also strengthen its team.
“We are in the sector of Student Lifestyle! Our strategy for expansion is to remain focused on being the most preferred student housing brand in India,'' said Nidhi Kumra, co-founder and CEO.
With the fresh influx of students to the top tier cities, only 30 per cent avail on-campus accommodation, leaving 70 per cent of the students to seek other housing options.
The student housing market size is projected to reach over $25 billion annually by 2025, the company said. Rastogi said, “There is a significant unmet need for safe, comfortable, convenient and affordable lodging & community spaces for over 30 million migrant undergrad and post-grad students in India''.
(With inputs from PTI)