(Corrects date to March 12 from March 11)
March 12 (Reuters) - Stanza Living, a managed accommodation provider in India, is in the final stages of sealing a deal to raise up to $120 million in a Series D round led by an Abu Dhabi based investor, two sources with knowledge of the matter have told Reuters.
The latest funding round values the company at about $600 million, one of the sources said, up from about $300 million in the prior Series C round in 2019, adding that the deal is expected to close by the end of this month.
Stanza’s business model centres around the huge market in small guesthouses - locally called PGs, short for Paying Guest - which provide affordable food and accommodation to both students and workers migrating to India’s fast-growing megacities.
The company had about 50,000 beds as of March end 2020 with per bed rents in cities including Delhi, Bangalore and Hyderabad ranging from 3,000 rupees ($41.31) to 25,000 rupees per month.
The company expanded to four new cities last year and has previously said it aims to add 100,000 beds by the end of 2021.
India’s overall residential rental market was worth more than $20 billion in 2019, according to some estimates.
Stanza has so far raised $70 million from venture capital firms including Sequoia Capital, Accel Partners, Matrix Partners, Falcon Edge Capital and Equity International.
Sequoia, Matrix and Falcon Edge were not immediately available for comment.
The latest fund-raising round had participation from some of the existing investors, the sources said, declining to name which ones.
The sources requested anonymity because they were not authorized to talk about the matter publicly. Stanza did not respond to a request for comment.
The New-Delhi based firm’s competitors in a highly fragmented market include Zolo Stays and Oyo Life, among others. ($1 = 72.6250 Indian rupees) (Reporting by Ankit Ajmera in Bengaluru; Editing by Saumyadeb Chakrabarty)
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