Co-living startup Settl revenue is set to jump three-fold to around Rs 20 crore this fiscal and is looking to raise USD 2 million (about Rs 16.40 crore) to expand business, its Co-Founder Abhishek Tripathi said.
He said the demand for managed rental accommodations has increased significantly in the last one year with the opening up of the office and educational institutions post Covid.
The co-living segment was affected badly during 2020 and 2021 calendar years due to the Covid pandemic.
Started in 2020, Settl has 2,000 beds across 35 properties in Bengaluru, Hyderabad and Gurugram. It mainly caters to working professionals.
“Our revenue is estimated to grow at around Rs 20 crore this financial year from Rs 7 crore in the previous year. Demand for co-living accommodation, in general, has increased across cities,” Tripathi said.
He said the average rent for rooms and beds in co-living centres have risen in the last one year.
At present, Tripathi said the company is charging an average rent of Rs 26,000 for a studio apartment, Rs 35,000 for 1BHK and Rs 50,000 for 2BHK.
“People are valuing premium spaces more especially post Covid and we see a lot of influx from unorganised centres. The increase in rentals is primarily due to the complex situation that arose due to the demand/supply mismatch which resulted in a huge influx of people shifting to Tier 1 cities and a limited number of buildings that can cater to their needs,” he said.
Tripathi said the company is looking to raise fund in Pre-Series A round to expand operations in cities like Chennai, Noida, Delhi, and Pune.
“We are operationally profitable but in order to fuel our growth appetite we are currently in the middle of our fundraise. This capital will clearly establish us as leaders in the premium co-living space,” he said.
Further, he said the company is targeting to raise USD 2 million in this round.
In co-living, including student housing segment, Stanza Living, your space, Colive , Olive and Nestaway, are other key players