The funding round also saw the participation of Stanza Living’s existing investors including Sequoia Capital, Matrix Partners, and Accel Partners. This is the first tranche of a larger ongoing equity financing round that the company is raising.
“The $50 Mn tranche is expected to close by the end of July 2019. The company will use the fresh capital for organic and inorganic growth measures including potential acquisitions to strengthen its capabilities,” an anonymous source said.
Founded in 2017 by Sandeep Dalmia and Anindya Dutta, Stanza Living is creating a student-centric proposition with new-student living models encompassing a service-led housing solution, proprietary community-building personal and professional development programmes and a high-quality ecosystem catering to diverse student requirements.
In March, Stanza Living raised $4.4 Mn in venture debt from Alteria Capital with the startup planning to use the funds to unlock an inventory of one lakh beds by 2021 and expand across India.
The March funding was in addition to the $12.3 Mn from marquee global investors such as Sequoia Capital, Matrix and Accel Partners in the last 15 months.
According to the Global Student Property 2019 Report by Knight Frank, current demand for student accommodation across India totals more than 8 million bed spaces and is expected to grow at a rate of around 8 per cent each year to reach 13 million beds by 2025.