Stanza Living Secures Rs 110 Crore in Bridge Round
Managed accommodation provider Stanza Living has raised Rs 110 crore ($13 million) in a bridge round led by Alpha Wave. This marks the first equity round for the Delhi-based startup in over three years. Regulatory filings accessed from the Registrar of Companies reveal that the board at Stanza Living passed a special resolution to issue 1,207 preference shares at a price of Rs 911,440.17 each to raise the funds.
Key Investors and Valuation Update
Alpha Wave has contributed Rs 83 crore to this round, while Matrix Partners, Accel India, and Peak XV have collectively invested Rs 27 crore. According to TheKredible, a startup data intelligence platform, Stanza Living’s valuation has increased marginally to approximately Rs 3,900 crore ($470 million) from Rs 3,525 crore ($424 million) in the previous equity round. This new valuation highlights the company’s steady growth despite market challenges.
Previous Funding Rounds
Stanza Living was reportedly in discussions to raise $25 million prior to securing this bridge round. The company previously raised $57 million in a debt round led by Kotak Mahindra Bank and RBL Bank in March 2022 and $100 million in an equity round in April 2021. To date, Stanza Living has garnered over $230 million through various equity and debt rounds.
Business Model and Market Position
Stanza Living offers managed accommodation solutions tailored for working professionals and students. The company claims an inventory of over 75,000 beds spread across more than 450 residences in 24 cities. This expansive reach makes it a significant player in the co-living market. The company’s business model focuses on providing high-quality, standardized living spaces with a range of amenities, positioning it as a leader in the managed accommodation sector.
Financial Performance and Challenges
Stanza Living’s revenue from operations surged to Rs 442 crore in FY23, a substantial increase from Rs 115 crore in FY22. However, the company’s losses also grew by 18.71%, reaching Rs 495 crore in FY23 compared to Rs 417 crore in the previous fiscal year. The firm has not yet filed its audited financial statements for FY24, leaving current financial performance open to speculation.
Sector Trends and Investor Sentiment
The managed accommodation sector has seen varied interest from investors, reflecting both opportunities and challenges in scaling operations and achieving profitability. Stanza Living’s ability to raise funds in the current round indicates continued investor confidence in its business model and growth potential. However, the sector remains competitive, and the ability to innovate and manage costs will be crucial for sustained success.
Weekly Funding Highlights
Among growth-stage deals, Annapurna Finance led with $72 million, followed by Battery Smart with $45 million. Other significant deals included Propelld ($25 million), Red. Health ($20 million), and Dhaksha ($18 million). Early-stage startups also made their mark, with 15 startups raising a total of $32.5 million. Leading the early-stage funding were companies like Celcius Logistics, Matel, OTPless, Highperformr.ai, and Stupa Sports.
Key Developments in the Startup Ecosystem
In addition to funding, the week saw important hirings and structural changes in major companies. ANI Technologies appointed Ankush Aggarwal as the CEO of Ola Financial Services, while Meesho added Surojit Chatterjee to its board as an independent director. Meanwhile, Kartik Gupta, CFO of Ola, resigned, and Sandeep Kumar Barasia, executive director and chief business officer of Delhivery, also tendered his resignation.
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