Matrix Partners, Accel invest in Stanza Living1 min read . Updated: 28 Nov 2017, 04:02 AM IST
Stanza Living will use the funds from Matrix Partners and Accel to expand into new cities, upgrade its technology platform, and for hiring
Bengaluru: Student accommodation platform Stanza Living has raised an undisclosed amount from Matrix Partners and Accel, co-founder Anindya Dutta said in an interview.
The firm will use the funds to expand into new cities, upgrade its technology platform, and for hiring. While Dutta declined to disclose the amount, an official with one of the company’s investors said it had raised $2 million. The official requested anonymity.
Currently, Stanza Living offers accommodation for students in the National Capital Region centred around Delhi, and has plans to expand into educational hubs across the country.
Dutta declined to share details of the new cities the company plans to expand to. It has around 100 students on its platform and plans to have 5,000 in the next two years.
“We are currently building another 300 housing spaces focused on students. We do not operate as a PG/rental aggregator, but instead focus on student accommodation services loaded with all facilities like internet connectivity, recreational spaces, housekeeping, and food services," Dutta said.
The cost per student ranges from Rs7,000 to Rs25,000, depending on the specifications of the accommodation.
Apart from this, the company also offers community networking and internship opportunities to students on its platform. Its ‘Stanza Social’ initiative, which is focused on a student’s social well-being, holds monthly networking events with start-ups and bigger firms.
The Stanza Springboard programme, focused on the professional well-being of the student, offers counselling sessions, internship opportunities with companies, and sessions with founders and other industry professionals.
According to the company, the student accommodation market in India is largely unorganized and fragmented. Stanza Living aims to offer students facilities in-house, along with well-being programmes.
“It amazes us as to how an industry that generates annual revenues in excess of $14 billion continues to see no fundamental innovations and disruption. We, at Stanza, see a massive disruption opportunity in this industry. We believe we could create a powerful youth brand that could organize the student accommodation market in ways similar to how the Hiltons and Marriotts of the world transformed the hospitality space," the company said in a statement.
The company was founded by Dutta and Sandeep Dalmia, who have worked with firms like Boston Consulting Group, Goldman Sachs and Oaktree Capital.
Stanza competes with other accommodation aggregators like Nestaway, Zocalo, Homers and Homigo.