Zolo’s Journey: Transforming the Co-Living Landscape Across India

Zolostays, or Zolo as it is fondly known, began its journey in 2015 with a vision to redefine how people live in cities. Founded by Nikhil Sikri, his wife Sneha Choudhry, and his brother Akhil Sikri, Zolo’s story is one of identifying a pressing problem and crafting a unique solution. Before starting Zolo, the trio worked on an edtech venture called Augbrain, but a deeper understanding of market needs during their entrepreneurial journey led them to pivot into the managed housing sector.

The inspiration behind Zolo was simple but powerful. The co-founders recognized glaring gaps in the paying guest (PG) accommodation market, which suffered from poor quality, lack of transparency, and subpar services. They envisioned creating not just better housing options but a full-fledged community living experience that catered to the needs of modern urban dwellers.

The Early Days: Addressing a Market Gap

When Zolo was founded, the concept of co-living in India was still in its infancy. Most housing options for young professionals, students, and working individuals were limited to outdated PGs or expensive rental apartments. The market was fragmented, unorganized, and lacked a focus on tenant experience.

The co-founders saw an opportunity to bring a managed approach to the housing space. With Zolo, they aimed to offer living spaces that were clean, secure, and came with bundled amenities like WiFi, housekeeping, food, repairs, and maintenance—all within an affordable rent. The idea was to simplify urban living and provide an end-to-end solution for those looking for a hassle-free living arrangement.

Zolo started small, but their vision was expansive. By establishing partnerships with property owners and developers on revenue-sharing and leasing models, the company created a sustainable business model that benefited all stakeholders.

Rapid Expansion and Services

Zolo’s growth was swift and steady. Today, the company operates across 13 cities in India, managing over 300 properties with approximately 50,000 beds. From its humble beginnings, Zolo has become a leader in the managed housing sector. Its offerings have expanded to include both shared and private rooms, catering to diverse audiences such as students, young professionals, and working individuals.

What sets Zolo apart is its focus on creating a seamless living experience. Every tenant at Zolo gets access to essential services like WiFi, housekeeping, food, and DTH connections—all included in their monthly rent. This not only reduces the hassle for tenants but also ensures consistent quality.

Challenges and Opportunities During the Pandemic

The COVID-19 pandemic brought unprecedented challenges to the co-living sector, as lockdowns and work-from-home trends disrupted demand. However, Zolo adapted quickly. The pandemic created a shift in housing preferences, with a growing demand for private rooms and managed spaces that prioritized hygiene and safety.

Zolo capitalized on this trend, and by the end of the first wave in 2020, the company’s occupancy rates had bounced back to 68%. As offices reopened and employees began returning to cities, the demand for co-living spaces surged. This resurgence underscored the resilience of Zolo’s business model and the growing appeal of managed housing.

Funding and Financial Milestones

Zolo’s growth journey has been supported by strong investor backing. To date, the company has raised around $90 million, including $56 million in a Series C round led by prominent investors like Investcorp, Nexus Ventures Partners, Mirae Assets, and Trifecta Capital. Other notable backers include Alec Oxenford (founder of OLX), Chennai-based Olympia Developers, and the Patni Computers Family Office.

The company is now in talks to raise $100 million in its Series D round through a mix of equity and debt financing. The fresh funds will be used for expansion into new cities, acquisitions in the co-living and student housing segments, and even international expansion into Southeast Asia and the Middle East.

Despite the challenges of the pandemic, Zolo recorded a revenue of ₹54 crore in FY21, showcasing its ability to navigate disruptions and sustain its operations effectively.

Market Trends and Competition

The co-living industry is gaining momentum as hybrid work culture and affordability drive demand. Zolo is not alone in this space—competitors like Stanza Living and Your-Space are also making waves. Stanza recently raised $57 million in debt financing, while Your-Space secured $10 million in a Series A round in early 2022.

What sets Zolo apart, however, is its focus on technology and innovation. The company integrates advanced tech solutions for property management and tenant services, ensuring seamless operations and high customer satisfaction. Zolo also delivers strong returns for property owners, offering internal rates of return (IRRs) exceeding 20%, significantly higher than market rental yields.

Vision for the Future

Zolo is now looking to diversify its offerings. While its current customer lifetime value (LTV) averages 3–3.5 years, the company aims to increase this by introducing family housing options and fully managed homes. These initiatives are expected to attract long-term tenants and further strengthen Zolo’s position in the market.

With ambitious plans for domestic and international expansion, Zolo is on track to become a global leader in the managed housing and co-living industry. By addressing unmet needs and pioneering innovative solutions, Zolo continues to shape the future of urban living in India and beyond.