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As per sources, Equity International’s investment in the company has been undertaken at the same valuation — $300 million - that it had garnered earlier.
NEW DELHI: Equity International, the real estate-focused investment firm founded by billionaire investor Sam Zell, has invested an undisclosed sum in Delhi-based student housing startup Stanza Living, according to sources.
The investment is believed to be part of Stanza Living’s Series C equity financing round, in which it raised fresh capital of about $50 million, and which was led by New York-based investment firm Falcon Edge Capital, sources told ET. Both Stanza Living and Equity International did not respond to ET.
As per sources, Equity International’s investment in the company has been undertaken at the same valuation — $300 million - that it had garnered earlier.
Till date, Stanza Living has raised an estimated $70 million.
The company claims to have an estimated 45,000 beds under its inventory, spread across nine cities, including the National Capital Region, Bengaluru, Pune, Hyderabad, Chennai and Coimbatore, Indore, Vadodara and Dehradun - all of which are seen as education hubs.
Compared to the West, where the market is estimated at $200-$300 billion, India's student accommodation segment is a highly-fractured and under-penetrated space, where demand continues to far outstrip supply.
The investment in Stanza Living is the second in India by the private equity firm.
In 2011, it had invested in Gurugram-based SAMHI, a hotel development and investment platform focused on properties that cater to the economy to upscale segments.
Equity International had invested through its ZEI-V fund in SAMHI, which has also been reported to be contemplating an initial public offering.
India's co-living sector, of which student housing is a sub-segment, has continued to attract significant capital. Other players in the space, such as NestAway, have been reported to be in the market to raise up to $100 million in fresh financing, while Bengaluru-based Zolostays raised $30 million in January this year.
The investment is believed to be part of Stanza Living’s Series C equity financing round, in which it raised fresh capital of about $50 million, and which was led by New York-based investment firm Falcon Edge Capital, sources told ET. Both Stanza Living and Equity International did not respond to ET.
As per sources, Equity International’s investment in the company has been undertaken at the same valuation — $300 million - that it had garnered earlier.
Till date, Stanza Living has raised an estimated $70 million.
The company claims to have an estimated 45,000 beds under its inventory, spread across nine cities, including the National Capital Region, Bengaluru, Pune, Hyderabad, Chennai and Coimbatore, Indore, Vadodara and Dehradun - all of which are seen as education hubs.
Compared to the West, where the market is estimated at $200-$300 billion, India's student accommodation segment is a highly-fractured and under-penetrated space, where demand continues to far outstrip supply.
The investment in Stanza Living is the second in India by the private equity firm.
In 2011, it had invested in Gurugram-based SAMHI, a hotel development and investment platform focused on properties that cater to the economy to upscale segments.
Equity International had invested through its ZEI-V fund in SAMHI, which has also been reported to be contemplating an initial public offering.
India's co-living sector, of which student housing is a sub-segment, has continued to attract significant capital. Other players in the space, such as NestAway, have been reported to be in the market to raise up to $100 million in fresh financing, while Bengaluru-based Zolostays raised $30 million in January this year.
( Originally published on Nov 21, 2019 )
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