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StayAbode takes on real estate in an unconventional way

Last Updated 28 May 2017, 18:27 IST
Much before OYO came up with its Township at Ejipura, StayAbode had landmarked the location, with its first community-based residence exactly opposite to it.

At a time when co-working had become a rage in India, StayAbode successfully experimented with design, technology, service and brand to build co-living spaces for the rental residential market at scale. The company, started by three entreprenuers Devashish Dalmiya, Viral Chhajer and Varun Bhalla, says that its designs are such that one does not need to think about the hassles of managing a home.

The company StayAbode works on a full-inventory model leasing the spaces for a five- to 10-year period offering services including housekeeping, security and community events, apart from housing facilities.

“At StayAbode properties, utility bills are paid, linens washed and one cooks only when one feels like. It’s like living in a boutique hotel with a community of like-minded individuals,” says Chhajer, who is also the CEO of the company.

The company, which as of now employs 18 people, was initially bootstrapped since inception in May 2016, and raised an undisclosed amount of funds in February this year.

“The company raised angel funding in February this year from a consortium of investors led by Ishan Manaktala and Angie Mahtaney,” says Dalmiya, who handles the finance function at StayAbode.

The company seems to use real estate efficiently, giving property owners up to 100% higher yield on their properties. “StayAbode’s co-living spaces maximises space utilisation that allows members of our community to live in a world-class facility at a price they would pay for a sub-standard accommodation facility in the city,” adds Chhajjer.

Headquartered in Bengaluru, the concept of the company is almost similar to paying guests, yet quite innovative as well. The startup tries to bring together like-minded people at its co-living spaces.

Though the company has be operationally profitable since day one, it says that its Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) profitability is much under its control.
“Thanks to our business model, we can go EBIDTA-profitable at our wish, but right now, we are focusing on business growth,” says Chhajer.

StayAbode, which has five properties in Bengaluru as of date and plans to take it to 15 by year-end, sees no competition in the market. “Even though we get some competition, the market is so vast that it won’t impact us,” opines Dalmiya.

The company charges between Rs 12,500 per bed, and Rs 35,000 for a 1 BHK apartment. With an average rental value of over Rs 14,000, StayAbode claims to be functioning at a 100% occupancy level.

The company also claims to increase rental yields from the current 3-4% to 10-11% for property owners.

“As a philosphy, we are on a quest to make people happier and more productive,” Chhajjer adds, on the ideology of the company.

StayAbode envisages to be present in every locality of the country, and currently has properties in Marathahalli, Mahadevapura, HSR Layout, BTM Layout and Koramangala.

In January this year, Zolo, another Bengaluru-based platform for managed co-living spaces, secured $5 million in Series A funding, led by Nexus Venture Partners.
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(Published 28 May 2017, 16:53 IST)

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