Co-living firm Zolostays expects to achieve a revenue of ₹660 crore in FY24, while making strides toward attaining profitability after taxes within the next two quarters, according to a top company executive. The company’s revenue stood at around ₹300 crore for FY23, compared to ₹140 crore in FY22.
Furthermore, the company claims to have attained a positive EBITA level in FY23. CEO and Co-founder Nikhil Sikri told businessline that the company is currently engaged in a phase of expansion.
This expansion involves an investment of around ₹150 crore over the next 18 months. Sikri clarified, “While the investment will keep on going, this is something that is outside of retained earnings,” he noted. Presently accommodating 55,000 beds, the company plans to expand to 100,000 beds by the conclusion of this financial year.
Beyond its domestic operations, Zolostays is planning to foray into the international market with a focus on the student housing segment. Sikri explained, “We anticipate completing preparatory work by the end of this calendar year, and you can anticipate concrete progress on the ground by the close of the following year for our expansion.”
International market foray
For the initial phase, its target market includes Dubai, Indonesia, and Thailand, primarily because of the ease of travel. “Once established, we’ll quickly move to the West, such as the US and Canada, where we believe we have bigger markets and deeper pockets,” he added.
Speaking about the growth vectors, the co-living segment will continue to register growth in existing cities, and there is no plan to expand to any new cities. “However, growth in student housing space is a function of the kinds of opportunities at play,” he said.
The company offers its services across 15 cities including, Bangalore, Chennai, Coimbatore, Pune, Hyderabad, Noida, Delhi, Mumbai, and others.
In addition to its co-living and student housing business, in the recent past, Zolostays also entered the luxury hotel space with the launch Of Hotel Z in Bengaluru.
Alongside this, the company also operates a fourth vertical, known as Z Assets, specialising in real estate brokerage services. Over the past two years, it has successfully facilitated transactions totalling around ₹400 crore. Going forward, it aims to facilitate transactions within the range of ₹300–500 crore for the current year.
Additionally, the co-living company is in the process of raising a fresh round of $50-$75 million funding, while cumulatively it has raised around $90 million to date.