Bangalore-based startup NestAway, an online home rental service for working singles, raised US$12 million from Flipkart and Tiger Global today. With the fresh funding, the startup aims to improve its technology platform and expand into more cities.
NestAway was co-founded by Amarendra Sahu, Smruti Parida, Deepak Dhar, and Jitendra Jagadev in January this year. The startup seeks to provide fully furnished shared accommodation for working singles living in metro cities. NestAway claims to give a hassle free online renting experience based on the customer’s preferences. There is no brokerage cost on finding accommodation and each tenants is verified before entering a contract.
On NestAway, users can also list their houses to find tenants. A home owner can furnish their house and list it themselves or can pay NestAway to furnish it. Usually, a three bedroom apartment in Bangalore might be rented out to a family for INR 30,000 (US$470). Although on the site, with its concept of shared accommodation, the house owner might receive a rent of INR 48,000 (US$750), with six tenants occupying their house who all split the cost.
Once the rent is paid online, NestAway’s escrow system takes a 12.5 to 15 percent of each transaction, then transfers the rest to the landlord.
In India, bachelors are not always welcome in residential areas without prior verification or recommendation. Working singles are assumed to have a haphazard lifestyle with untimely waking hours and unplanned schedules. This notion has been longstanding in Indian society for a few decades now and NestAway aims to change the outlook people have.
To find accommodation on NestAway, the potential tenant is required to provide ID, a permanent address, and proof of employment and education. The startup then takes care of the legal agreement, rent collection, interior insurance, home repairs, security deposit, and more.
NestAway believes single professionals deserve comfortable living spaces that they can look forward to returning to after a long day at the office.
The startup has raised two rounds of funding this year. In March, Inmobi’s Naveen Tiwari teamed up with IDG Ventures to provide US$1.2 million in seed funding in NestAway. The startup used that investment for expansion into Pune and Delhi.
Mumbai-based Housing, Bangalore-based CommonFloor, and Bangalore-based NoBroker are other other contenders in this space. They compete directly and indirectly with NestAway. The element that differentiate this startup from these accommodation aggregators is its focus on providing quality housing to unmarried, independent professionals, according to the firm.
This article has been well researched by Rise My Venture team.