NestAway, a real estate startup in India recently raised $30 million in a Series C funding round led by Tiger Global. Other investors include Yuri Milner, the founder of venture firm DST Global, along with IDG Ventures India and investor Sujeet Kumar. This latest funding round brings total investment up to $43.2 million.
The deal comes just as rental platforms such as Airbnb aggressively fight for traction with the growing Indian market, projected to be worth $40 billion over the next five years. (To learn more, see: Airbnb to Take on India’s Projected $40 billion Travel Market.) NestAway finds its niche in helping users “rent a furnished home in a posh locality.”
Guiding Young Professionals Through the Rental Process
Young professionals moving away from home are a growing market in the Indian subcontinent. The world’s largest democracy is expanding its middle class by the day. The population is increasingly gaining access to mobile devices, downloading and logging onto applications to help them with anything from hailing a cab to finding an apartment.
The Internet and Mobile Association of India (IAMAI) and KPMG recently released a report projected the total number of Internet users in 2017 to grow to 500 million Internet, a 150 million increase from most recent numbers, reports TechCrunch.
Like other P2P platforms, NestAway is attractive to users who seek services with no brokerage fees or maintenance hassles. Rent starts out at 6,000 rupees a month, approximately $90. Users can search unfurnished, semi furnished or fully furnished apartments, making it convenient for different types of renters. Listers of their homes, on the other hand, have the benefit of seeing the details of their tenants online, and generating otherwise unrealized rental income.
The competitive edge that NestAway provides for its niche of young families and singles, is its comprehensive offering from move-in services to rent payments and maintenance management all within one app.
The Bottom Line
NestAway builds out the P2P sharing economy model with a uniquely Indian twist. “We are building India’s much needed social infrastructure of affordable city housing with ‘imagination and empathy,’" states NestAway on its homepage. Investors see the prospect of NestAway gaining momentum with the strengthening, young Indian middle class, within a rental market projected to be worth upwards of $40 billion over the next five years.