Hyderabad: Ratan Tata-backed NestAway Technologies Pvt Ltd is looking at raising $30-50 million in the next three months as the rental services provider seeks to get more house owners on its platform.
Founded a year ago, the company manages rentals for customers by providing fully furnished homes, connecting tenants and house owners. It now operates in Bengaluru, Hyderabad, Pune and Delhi and its suburbs. Almost 70% of the company’s business comes from Bengaluru.
In a series-A funding in July 2015, the company raised $12 million from Tiger Global and Flipkart. Earlier, IDG Ventures and angel investor Naveen Tiwari, co-founder of InMobi, put in $1. 25 million.
“We have started talking with existing investors and have one fresh investor. The fresh funds will help us enhance our technology and deepen our services in existing cities. The plan also is to expand in other cities like Chennai,” said Amarendra Sahu, co-founder & chief executive of NestAway.
Sahu said the four founders of the company, including Smruti Parida, Deepak Dhar and Jitendra Jagadev, together hold 51% of the company.
With a second round of funding lined up, they may dilute around one fourth of their existing stake.
NestAway now has 2,300 house owners and 10,000 tenants with it.
“The aim is to reach one lakh tenants and 50,000 house owners this year,” Sahu said.
NestAway offers ready-to-walk in homes and provides rentals based on the requirement of the tenant—a bed, a room or a complete house.
“Most of the house owners ask for high advance or deposit as they do not want the rental stream to be disturbed. We bring in a guarantee that the rent will not be faltered and also tie up for insurance for the house. And with a lower deposit, furnished house and security checks in place, it becomes easier for the tenant,” Sahu said.
In Bengaluru, where typically rental advances are of 10 months, NestAway offers homes on two-month deposits. The company gets a monthly revenue of around Rs.7 crore now. It gets a share of 12.5% in each rental agreement.