Stanza Living raises Rs 425 cr in debt financing led by Kotak Mahindra Bank, RBL Bank

Co-living operator Stanza Living said on Wednesday it had raised Rs 425 crore in debt financing led by Kotak Mahindra Bank and RBL Bank for capital expenditure and business expansion in major cities.

Stanza Living, which provides rental housing for students and professionals, was co-founded by Sandeep Dalmia and Anindya Dutta in 2017.

The company secured $57 million (about Rs 425 crore) in debt financing led by Kotak Mahindra Bank and RBL Bank.

Its existing debt provider Alteria Capital also participated in the final round.

“The proceeds will be used to fund capital expenditures for Stanza Living’s current and future projects, and to accelerate the company’s next phase of multi-city expansion,” Stanza Living said in a statement.

This injection of debt builds on the $100 million raised by Stanza Living last year in the form of equity.

The company is present in 23 cities with more than 75,000 beds.

To date, Stanza Living has raised nearly $220 million in debt and equity combined.

Anindya Dutta, MD and co-founder of Stanza Living, said, “This increase in debt is the result of our careful financial management and disciplined planning to stay ahead of near-term market challenges. It will provide us with ammunition to offer a higher yield. on equity and continue to aggressively grow our operations across the country.”

After the initial downturn caused by the pandemic, Stanza Living said it showed strong resilience and saw 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 thanks to strong interest from major academic institutions and corporations.

The Gurugram-based company is backed by global investors like Alpha Wave Incubation, Equity International, Falcon Edge Capital, Sequoia India, Matrix and Accel Partners.

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