Bengaluru-based coliving spaces provider Zolo is set to sell its student accommodation business to Mumbai-based Good Host Spaces Management Services via a slump sale for INR 107.8 Cr (around $12.5 Mn).
On February 10, the Zolo board approved the startup’s proposal to sell its student accommodation vertical to Good Host Spaces.
The transaction will be a mix of cash and debentures, with 90% of the consideration (INR 97.02 Cr) payable in cash. The remaining 10% (INR 10.78 Cr) will be paid as optionally convertible dentures (OCDs).
“The sale will enable ZoloStays to focus on business operations and pursue growth opportunities. The lump sum consideration will improve the company’s liquidity position and strengthen its balance sheet. The transaction will allow the company to streamline its operations and improve overall efficiency,” the company said.
Founded in 2015 by Akhil Sikri, Isha Choudhry, Nikhil Sikri, and Sneha Choudhry, Zolo offers affordable paying-guest accommodations, service apartments, and independent flats to students and working professionals via its AI-powered app.
It counts Investcorp, Nexus Ventures Partners, Mirae Assets, and Trifecta Capital among its backers.
The startup currently has housing facilities in more than 10 cities across the country and competes with brands such as Isthara, Stanza Living, and Hosteller.
On the other hand, Nimesh Grover and Stanley D’britto launched Good Host Spaces in 2017 to offer third-party on-campus student accommodation services in the country.
The company claims to have a presence in about five cities and operates approximately 20,000 beds at universities such as Manipal University, OP Jindal Global University, T A Pai Management, and Shoolini University.
