NestAway raises Rs 330 crore
Home rental startup NestAway is learnt to have scooped up $50 million (Rs 330 crore) from UC-RNT Fund, an investment vehicle sponsored by Tata Sons chairman emeritus Ratan Tata and the University of California, sources close to the matter said. The company’s existing investors Tiger Global and IDG Ventures India have also participated in the funding.
NestAway is expected to be valued at about $180-200 million after the investment, sources said.
After backing Ola, health tech startup Curefit, and point-of-sale terminal maker MSwipe, this will be the fourth large bet from UC-RNT this year. With a corpus of around $250 million, the investment vehicle will deploy funds across India, Southeast Asia and the US.
An email sent to Ratan Tata’s office did not elicit a response while Amarendra Sahu, co-founder and CEO of NestAway Technologies, did not comment on the fund-raise.
Last year, Ratan Tata had personally invested an undisclosed amount in NestAway. “While UC-RNT has come in as the new investor, NestAway is also talking to a few others and can extend the round to as much as $80 million. Fosun is one among the possible suitors at the moment,” a person privy to the deal talks said. It hasn’t been easy for the company to raise the fresh funds with so few investors looking to write cheques in the range of $50-100 million for Indian startups.
Founded in 2015, NestAway takes a 10-12 per cent commission out of the monthly rent it generates from the property owners in exchange for offering maintenance and upkeep.
There is no brokerage that either the tenant or the owner has to pay in this model. Having raised $43 million so far, it currently operates 15,000 such properties across eight cities on its platform, clocking Rs 350 crore in gross rentals.