India lacks high-quality living options
Chicago-based Equity International (EI), Sam Zell’s investment firm focused on building businesses globally since 1999, has announced an investment in Stanza Living, India’s largest student housing and shared living operator.
The investment is part of Stanza Living’s Series C equity financing round, which saw participation from company’s existing institutional investors – Falcon Edge Capital, Sequoia India, Matrix and Accel Partners.
The transaction provides capital to scale the portfolio, expand the geographic footprint, and solidify brand positioning.
This marks EI’s second investment in India since 2011 and is consistent with the firm’s strategy of partnering with strong local entrepreneurs.
“Stanza Living addresses the under-served demand for high-quality, standardized housing in a market with approximately 20 million migrant millennial population,” EI’s Chief Executive Officer Tom Heneghan said on 2 Mar 2020.
“We see Stanza Living as the front-runner in this sector due to the company’s talented management team, proven execution capability, and high-quality portfolio. We support their focus on striking the right balance between scale and profitability,” said Heneghan.
The market opportunity for shared living in India is compelling, noted the investor.
India has the largest and fastest-growing student population in the world, with approximately 12.1 million migrant students enrolled in higher education.
There is a limited supply of student housing on-campus and close to 8.1 million students have to depend on off-campus accommodation options which are largely unorganized and fragmented.
A similar challenge is faced by the young working professionals with approximately 15.5 million millennial white-collar workforce migrating for better career opportunities to India’s key urban centers.
However, lack of high-quality living options that solve for their needs of a high-quality physical product, a convenient and hassle-free service offering and a unique sense of community, has resulted in a silent migration crisis for a vast swathe of the population.
Since its inception in 2017, Stanza Living has built an inventory of close to 50,000 beds across 10 key cities. The company has attracted significant consumer interest for its end-to-end managed, high-quality shared living product.
The company’s business model utilizes data and technology to drive cost and operational efficiencies across the value chain, delivering a personalized consumer experience.
“We are excited to have Equity International support our company and growth trajectory and look forward to the team’s strategic guidance as we continue building our business,” said Anindya Dutta, Managing Director and Co-founder of Stanza Living.
“Shared accommodation is an evolving asset class in India with the potential to grow at least 4x over the next decade. We are determined to strengthen our position as the industry-leading brand,” said Dutta.
Sandeep Dalmia, Managing Director and Co-Founder of Stanza Living commented, “Equity International’s active ownership approach has enabled global businesses to become industry leaders. With their support, we have a unique opportunity to build a high-value consumer product based on delivering nuanced consumer experience, operational efficiencies and strong unit economics.”
Stanza Living is a tech-enabled, community living concept, Stanza Living delivers world-class living experiences built on a wide array of amenities and services for convenient living and operated by a professional team.
The company is backed by marquee global investors like Equity International, Falcon Edge Capital, Sequoia India, Matrix, Accel Partners and Alteria Capital.
Stanza Living is co-founded by IIT-IIM alumni by Anindya Dutta and Sandeep Dalmia, who have had professional experiences across geographies like the US, UK, South East Asia and, India and with a range of pedigreed firms like Boston Consulting Group, Goldman Sachs, and Oaktree Capital.
Founded by Sam Zell in 1999, Chicago-based Equity International Management, LLC (EI) is a private equity firm focused primarily on building high-quality businesses outside of the United States.
The Firm makes entity level investments in real estate-related operating companies alongside local operating partners to grow its portfolio companies into industry-leading, institutional companies.
EI’s investment and value go beyond its capital by providing its portfolio companies with institutional credibility, exceptional corporate governance, best practices, a unique operating perspective, and access to a powerful global network.
EI employs an active ownership approach, partnering with portfolio company leadership to achieve strategic growth and industry leadership. As a result, EI is recognized as a partner of choice around the world. fiinews.com
