ZoloStays has continued its strong growth momentum following a fivefold expansion in FY24, as the company recorded a 67% year-on-year increase in its operating scale in FY25. At the same time, the firm reduced its losses by 38% to ₹35 crore, indicating improved operational efficiency.
The Bengaluru-based company reported a significant rise in revenue from operations, which increased to ₹342.3 crore in FY25 from ₹204.4 crore in FY24, according to financial statements sourced from the Registrar of Companies (RoC). ZoloStays primarily generated its revenue from accommodation and allied services offered to students, working professionals, and corporate clients.
This core segment contributed nearly 80% of the company’s total operating revenue and grew by 73.6% to ₹273 crore in FY25, compared to ₹99.8 crore in the previous fiscal year. Consequently, this growth underscores the rising demand for co-living and managed accommodation solutions in urban India.
In addition, ZoloStays offers property management services to colleges and universities, along with food subscriptions and other related amenities. However, revenue from this segment declined by 30.7% to ₹62.9 crore, reflecting a shift in business dynamics.
Moreover, the company earned ₹3.6 crore as interest income, which brought its total income to ₹346 crore for the financial year ending March 2025.
On the cost front, property management emerged as the largest expense category, accounting for 67% of the overall costs. This expense increased by 83.6% to ₹254.9 crore, driven by expansion and operational scaling. Meanwhile, employee benefit expenses remained stable at ₹82.4 crore, and depreciation costs declined by 28.2% to ₹12.5 crore.
Furthermore, the company incurred higher advertising, promotional, commission, donation subscriptions, and other overhead expenses. As a result, total expenses rose by 43.3% to ₹381.1 crore in FY25 from ₹266 crore in FY24.
Despite robust revenue growth, ZoloStays continued to report operating losses. However, the company improved its core performance as its loss before exceptional items narrowed to ₹35.2 crore in FY25 from ₹56.8 crore in FY24.
Importantly, after accounting for an exceptional gain of ₹100.47 crore from the sale of its student housing business to Good Host Spaces, the company reported a net profit of ₹59.53 crore in the previous fiscal year. This transaction significantly boosted its bottom line.
At the same time, ZoloStays reported an EBITDA loss of ₹14 crore, while its Return on Capital Employed (ROCE) and EBITDA margin improved to -23.23% and -4.12%, respectively, in FY25. On a unit economics basis, the company spent ₹1.11 to generate every rupee of revenue, indicating ongoing efficiency improvements.
As of the end of FY25, the company reported total current assets of ₹137 crore, including cash and bank balances of ₹10.19 crore, thereby maintaining a stable liquidity position.
ZoloStays has raised a total of $118 million in funding to date. According to media reports, Nexus Venture Partners remains the largest external stakeholder with a 34% stake, followed by Investcorp and Mirae Asset.
With steady revenue expansion, reduced losses, and strategic restructuring, ZoloStays is positioning itself for sustainable growth in India’s evolving managed accommodation and rental housing market.
