NestAway, a Bangalore-based online home rental service provider has secured about $12 million in Series B round from Tiger Global and Flipkart. The marketplace will be using the money to expanding its service to other geographic regions as well as to enhance the technology of its platform.
Founded in 2015 by a team of four graduates – Amarendra Sahu, Jitendra Jagadev, Smruti Parida and Deepak Dhar, NestAway was started as a platform for shared accommodation.
In March, NestAway raised $1.3 million in seed funding round from InMobi founder Naveen Tiwari and VC firm IDG Ventures India. Currently operating in Bangalore only, the company will soon expand to Pune and Delhi NCR region.
It lets users find housing rentals and house owners rent their properties on the platform, in a completely different manner though. At Nestaway, once a house gets listed, the startup makes sure that the upcoming tenant gets a full-furnished home, at its poshest best, thus providing an affordable housing solution to singles entering strange new cities for work.
Along with that, the company also provides services like house cleaning, plumbing and relocation services. The company turns unfurnished houses into fully-furnished and managed apartments and provides them at affordable prices to pre-verified tenants.
NestAway’s offerings within its homes include the obvious stuff like bed, mattresses, table, cupboard, etc., along with more luxurious items likeTV, washing machine, wireless internet connectivity, DTH and refrigerators, It also provides pillows and bed covers which it claims to change every week with monthly electric check-up.
And what if something stops working all of a sudden ? In such cases, the user just needs to inform them and they will get it fixed or replace it within just 4 hours.
To generate revenues, the company takes commission from the owner. It collects rent from the tenants and then passes the rent to the owner after deducting its commission.
This fresh capital for NestAway comes at a time when a lot of investor activities are happening in this space. Zenify, a residential rental management start-up recently raised a seed funding round to expand its operations. NoBroker, a peer-to-peer property renting portal has raised $3 million in Series A round.
However, I still think, Singles moving to new places of work will find Nestaway’s furnished, western-standardized home rental options far too convenient as compared to those offered by simple real-estate listing platforms.