Stanza Living Raises $13 Million in Bridge Round Led by Alpha Wave

Stanza Living Raises $13 Million in Bridge Round Led by Alpha Wave

Stanza Living, a managed accommodation provider based in Delhi, has successfully raised Rs 110 crore ($13 million) in a recent bridge round. The funding was led by Alpha Wave, an investment firm. This equity round comes after a gap of more than three years for the startup, marking an important milestone in its growth trajectory.

The board at Stanza Living passed a special resolution to issue 1,207 preference shares at a price of Rs 911,440.17 each, resulting in a total fundraise of Rs 110 crore. Other investors in this round included Matrix Partners, Accel India, and Peak XV, who collectively invested Rs 27 crore.

This bridge round has brought the total valuation of Stanza Living to approximately Rs 3,900 crore ($470 million), a modest increase from its previous valuation of Rs 3,525 crore ($424 million). The company had been in talks to raise $25 million in funding, and this recent round has helped it move closer to achieving that target.

Stanza Living has a strong track record of raising funds, having already secured $230 million across equity and debt rounds. In March 2022, it raised $57 million in a debt round led by Kotak Mahindra Bank and RBL Bank. This was followed by a $100 million equity round in April 2021.

As a managed accommodation platform, Stanza Living offers co-living solutions for both working professionals and students. It currently boasts an impressive inventory of over 75,000 beds across 450+ residences and operates in 24 cities.

The company's revenue has shown significant growth, with revenue from operations increasing from Rs 115 crore in FY22 to Rs 442 crore in FY23. However, its losses also grew by 18.71% to Rs 495 crore in FY23 compared to Rs 417 crore in FY22. The audited financial statements for FY24 are yet to be filed.

In the competitive landscape of managed accommodation providers, Stanza Living faces competition from companies like Colive, Your Space, Settl, Union Living, and Coho. The acquisition of NestAway, a home rental startup backed by Tiger Global, by Aurum PropTech (formerly Majesco Ltd) is an example of the challenges faced by startups in this sector.

Stanza Living's recent funding round led by Alpha Wave will undoubtedly help the company continue its growth trajectory and expand its presence across more cities in India. With its strong financial backing and strategic partnerships, Stanza Living is well-positioned to further innovate and provide quality co-living solutions to its customers.