Bengaluru-based coliving startup Zolo is exiting the student accommodation space, selling the vertical to Mumbai-based Good Host Spaces Management Services for INR 107.8 Cr through a slump sale.
The board of Zolo approved the sale on February 10, according to regulatory filings.
The transaction, first reported by Entrackr, is structured as a mix of cash and optionally convertible debentures (OCDs).
Of the total consideration, 90% (INR 97.02 Cr) will be paid in cash, while the remaining INR 10.78 Cr will be issued as OCDs.
Zolo stated that the divestment would allow the company to focus on its core business operations, improve liquidity, and enhance overall operational efficiency.
Founded in 2015 by Akhil Sikri, Isha Choudhry, Nikhil Sikri, and Sneha Choudhry, Zolo offers tech-enabled rental solutions including PG accommodations, serviced apartments, and independent flats targeted at students and working professionals.
Its app leverages AI to match tenants with suitable housing options.
The company is backed by marquee investors including Investcorp, Nexus Venture Partners, Mirae Assets, and Trifecta Capital.
Despite scaling operations across more than 10 Indian cities and reporting a 122.5% increase in operating revenue to INR 94.65 Cr in FY23, Zolo’s net losses widened slightly to INR 67.96 Cr during the same period.
Leadership at Zolo has seen significant changes over the past few years.
Co-founder Akhil Sikri stepped away from operational duties in 2023 and is now CTO at Apsona, while Isha Choudhry exited the company in 2020.
The acquiring company, Good Host Spaces, was founded in 2017 by Nimesh Grover and Stanley D’britto.
It specializes in third-party student housing solutions and currently operates around 20,000 beds across universities including Manipal University, OP Jindal Global University, T A Pai Management Institute, and Shoolini University.
The acquisition comes amid rising investment and M&A activity in India’s hospitality sector, buoyed by the upcoming vacation season and a surge in tourism.
Just this week, InterGlobe Aviation (IndiGo’s parent company) and French hospitality major Accor announced a joint investment in Treebo Hotels.
