In a significant move, PropTech firm Aurum is acquiring NestAway, a once high-flying Indian startup operating in the same space, for up to $10.9 million. This deal marks a near complete erosion in value for the startup’s investors, but also opens a new chapter in India’s $20-billion rental housing market.
NestAway’s Journey and Investor Base
Eight-year-old NestAway has had a remarkable journey. The startup raised $115 million over the years and was valued at $227 million in a funding round in 2019. Among its investors are notable names such as Sequoia Capital India, Tiger Global, Goldman Sachs, Yuri Milner, and Chiratae Ventures.
Aurum’s Investment and Conviction in the Rental Housing Market
Aurum, which earlier acquired a unit of NestAway for about $6.8 million, has expressed its commitment to stabilizing NestAway’s business by investing an additional $3.6 million. This capital infusion in NestAway is a testament to Aurum PropTech’s conviction in India’s massive $20-billion rental housing market.
The Impact of Covid on NestAway’s Business
The erosion in NestAway’s value can at least be partially attributed to Covid. The home rental platform NestAway features 18,000 properties on its platform, down from 50,000 before the pandemic. NestAway’s revenue also shrank to $3 million in 2022, down from $9.5 million two years earlier.
NestAway’s Vision and Future Prospects
“When we started NestAway, our vision was to revolutionize the way people live in cities by providing them with convenient, affordable and hassle-free housing solutions,” said Jitendra Jagadev, founder of NestAway. “Over the years, we have grown and expanded, serving thousands of customers, becoming a trusted brand in the PropTech industry.”
With Aurum’s acquisition, NestAway is poised to continue its mission under new leadership. The future holds exciting possibilities for both Aurum and NestAway as they navigate the dynamic landscape of India’s rental housing market.
