Stanza Living secures $57 million in debt financing from Kotak Mahindra Bank, RBL
Stanza Living, India’s largest technology-managed hosting company, has secured a $57 million (Rs 425 crore) debt financing led by Kotak Mahindra Bank and RBL Bank, with participation from its provider of existing debt Alteria Capital. Proceeds will be used to fund capital expenditures for Stanza Living’s current and future projects and accelerate the company’s next phase of multi-city expansion. This debt injection builds on the strong $100 million equity funding raised by Stanza Living in the middle of last year.
Today, with an inventory of over 75,000 beds, Stanza Living is the managed accommodation provider of choice for students and professionals migrating to 23 cities across the country. To date, Stanza Living has raised nearly $220 million in debt and equity combined.
“This increase in debt is the result of our careful financial management and disciplined planning to stay ahead of near-term market challenges,” said Anindya Dutta, MD, and co-founder of Stanza Living. . “This will provide us with ammunition to deliver a higher return on equity and continue to aggressively grow our operations across the country.”
The substantial increase in debt and access to institutional debt capital at such an early stage is an endorsement of Stanza Living’s business model that has generated healthy recurring revenue at scale since its launch in 2017. Through its ecosystem cutting-edge technology, proven unit economics and a highly skilled team, Stanza Living said it has set high standards for sustainable growth. Countering the initial downturn caused by the pandemic, the company has shown strong resilience and experienced one of the fastest recoveries in consumer demand in the past two quarters. Recently, Stanza Living also launched a new vertical business in the form of campus facilities management, due to strong interest from major academic institutions and corporations.
The managed hosting industry in India has witnessed a multiple surge in demand for reliable, high quality and secure hosting options, especially in the wake of the pandemic. With the growing adoption of hybrid work/study models and the growth of adaptable operators like Stanza Living creating comprehensive solutions for various consumer segments, the sector continues to attract investor interest. Today, the Stanza Living ecosystem offers a wide range of amenities such as chef-curated F&B options, professional housekeeping and laundry, and high-speed internet. Other amenities include 24/7 security systems, fun recreation facilities, engaging community programs, convenient mobility services and more, creating a hassle-free living experience for thousands of people. migrant students and working professionals.