The platform will be housed under Colive, a company that manages rental homes, they said, adding that this is the largest funding received so far by a coliving platform to develop a built-to-suit co-living asset.
The platform will be jointly owned by Bengaluru-based Sattva Group, an equal joint venture partner in Colive, and Bain Capital, with the private equity firm holding the majority stake. Colive will oversee the management of the platform.
“The final paperwork is nearly complete, and the deal should be finalised by the end of this month. Each asset under this platform will average 300,000 square feet, spread over 2-3 acres. It is targeted at executives as there is a significant opportunity for serviced living within this framework,” said one of the persons, who did not wish to be identified.
Colive is a partnership between Suresh Rangarajan and Sattva Group, which secured a 50% stake in the company for Rs 63 crore through series-A funding in 2019.
Even as the new platform is being set up, Colive is raising an additional $20 million for Bain for expanding the rental homes business, according to the people.Colive has plans to reach 50,000 beds in three years, up from the current 15,000 beds in rental homes vertical, they said.Sattva Group will be buying land or doing joint developments and building the properties for Colive to manage.
“The shared accommodation business is looking at multiple tie-ups with builders to expand its portfolio,” said another person.
Suresh Rangarajan, founder of Colive and Sattva Group, could not be reached for comment.
Colive also plans to expand its presence across major cities including Mumbai, Pune, Bengaluru, Hyderabad and Chennai.
The company is also set to venture into hybrid integrated pods, which combine co-living and co-working spaces as part of its future developments.
Established in 2016, Colive offers branded and serviced rental homes strategically located near educational institutions and business hubs.
The co-living market in India has experienced a surge in demand for shared accommodation among millennials and Gen Z, leading to a reversal of the declining rental trend observed during the Covid-19 pandemic.
According to a report from Colliers, India’s co-living market is projected to expand to 450,000 beds by the end of 2024 from 210,000 beds at the end of 2021.
